Logistics integration strengthens ASEAN region
Sep-30-2014 By : fcccadmin
Maritime connection projects under construction in the ASEAN region include the shipping route between Qinzhou Port in Guangxi and Kuantan Port in Malaysia, the China-ASEAN port logistics information center, and the cooperation mechanism between port cities in China and ASEAN. In terms of land transport connections, the construction of the Pan-Asia Railroad and the Nanning-Singapore Corridor are being discussed. The government of Thailand suggested two railway routes based on the current lines, one from Kunming to Bangkok and the other from Kunming to Vientiane, both of which could connect the China-ASEAN Free Trade Area with the pan-Asia region. The 3,800-km Nanning-Singapore Corridor starts from Nanning in Guangxi and runs south all the way to Singapore. The corridor covers Vietnam, Laos, Thailand and Malaysia and once complete, it will connect 1.5 billion people. Yang Xiuping, the Chinese Ambassador to ASEAN, said that logistics integration would not only improve transport but also bring people in the region together.
Yum! Brands expanding steps in logistics sector
Jul-01-2014 By : fcccadmin
More than 100 Yum! logistics vehicles travel nearly 10,000 kilometers across Beijing every day to deliver food to its restaurants. As the largest restaurant chain in the world, Yum! Brands made its debut in the distribution sector at the Third China (Beijing) International Fair for Trade and Services from May 28 to June 1. The group runs more than 40,000 restaurants in some 130 countries and regions worldwide. Yum! Brands China built a logistics center in Beijing’s Tongzhou district in 2004, covering 6,7000 square meters. It is the largest of its 18 logistics centers across the nation and its first world-class center. The warehouses for dry goods and frozen goods take up 28,000 sq m, where more than 2,000 categories of items are stored, ranging from meat, flour and cooking oil to cookers, paper cups and straws. The center delivers 18 million boxes of goods a year to more than 1,000 KFC, Pizza Hut, Little Sheep and Dongfang Jibai restaurants in the North China region, with a delivery range of some 1,000 km. Yum! executives said they have renewed the concept of logistics-it is no longer simply workers moving boxes, information flow is increasingly important. Orders from restaurants, customer service and delivery information are all processed and analyzed by computers. Even in the storing procedure, half of the time is used to process bills and orders.
Chinese government makes logistics industry’s growth a priority
By : fcccadmin
China is stepping up its efforts to develop its logistics industry, as the government announced its goal of building a modern national logistics service system by 2020. A State Council executive meeting in June, chaired by Premier Li Keqiang, approved a plan to develop the logistics industry in the middle and long term The move aims to lower the operational costs of logistics enterprises and improve logistics infrastructure networks, as well as to develop large-scale companies to improve the industrial chain. A total of 12 logistics issues, including services for agriculture, manufacturing, the industrial material supply chain and recycling materials, will become priorities. The government has announced it will crack down on illegal charges and regional protectionism to create a fair market environment. It also promised to ensure land supplies for building logistics service facilities such as warehouses and package sorting centers and to introduce preferential financial policies for the sector. It was also decided at the meeting of the State Council to further build up an economic belt along the Yangtze river to underpin China’s sustainable economic development, the China Daily reports.
Alibaba steps up logistics initiative
By : fcccadmin
Hangzhou-based Alibaba, the leading online retail services provider in China, has unveiled a strategic cooperation pact with China Post to jointly develop a “smart” logistics network in the country. The two sides agreed to deploy resources in the areas of warehousing, processing and building a “public services platform” that integrates China Post’s massive infrastructure and Alibaba’s more than 10,000 service outlets in the country. Before its initial public offering (IPO) in the United States, Alibaba has launched its own shopping site there called 11 Main Marketplace, developed by U.S. subsidiaries Auctiva and Vendio. The e-commerce firm also agreed to collaborate with the government of Italy, through its Ministry of Economic Development, to foster greater trade opportunities for Italian brands in China. It marked the second trade-related pact forged by Alibaba with a foreign government, following its cooperation deal with UbiFrance and the Invest in France Agency. “Alibaba has shown that it is keen to develop a vast logistics infrastructure to support China’s fast-growing online shopping market, while preparing the company for international expansion,” said Ricky Lai, Analyst at Guotai Junan International. “These developments could help increase Alibaba’s valuation.” In December, Alibaba accelerated efforts to expand its logistics capabilities through its HKD1.86 billion deal to buy a stake in Goodaymart, the logistics arm of Haier Electronics. Alibaba also formed the Cainiao Network Technology consortium in May last year with various courier services providers. This enterprise plans to invest as much as CNY100 billion over five to eight years to build a country-wide logistics network. The agreement with China Post could help drive further domestic and international expansion for Alibaba. China Post’s resources include 52,000 postal outlets, 40,000 Postal Savings Bank branches, 150,000 postal delivery workers, 50,000 direct-sales staff, 80,000 postal vehicles, 433 train carriages and 18 cargo aircraft, the South China Morning Post reports.
Vice Minister of Commerce calls for logistics improvement
Apr-30-2014 By : agxadmin
China’s logistics needs improvement, according to a Chinese Vice Minister of Commerce. “In order to expand domestic consumption, it is urgent for us to implement a modern logistics technology system to reduce distribution costs, especially in improving distribution for agricultural products,” Jiang Zengwei, Vice Minister of Commerce, said in March. “In addition, it is important for us to put more emphasis on logistics challenges in e-commerce, both in domestic and cross-border businesses,” said Jiang. High transportation costs and a lack of modern logistics facilities have been an outstanding problem in China’s supply chain for years. “There are many scattered logistics companies in China, but most of them are small because the threshold for entering the industry is low,” said Fu Yuning, Chairman of China Merchants Group. Among China Merchants Group’s 11 biggest sectors, which include shipping, commercial property and banking, Fu said the rate of return from the logistics business is the lowest, yielding about 5% in profit. Although trials to replace business tax with value-added tax have been conducted in the logistics industry, the program needs improvements because various fees and taxes are still high. “The fundamental way out for logistics is prompting standardization in transportation and technology, even at each transporting link,” said Fu. He also suggested to establish big players in the industry, the China Daily reports.
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