Center

Logistics look to 30% yearly rise

By Zheng Lifei (China Daily)
Updated: 2007-02-01 09:17

There are now about 16,000 logistics providers, with the largest one commanding less than a 2 percent market share.

Third-party logistics, which currently accounts for a small portion of the market, is expected to grow sharply as China opens up to competition.

"The demand for outsourcing of logistics will stimulate the development of a larger third-party logistics sector, which will drive consolidation in the industry," the report predicted.

The report said that 20 cities, 10 of which are inland, are likely to become logistics hotspots in the next five years.

China's modern logistics facilities are currently clustered around three main economic zones - the Yangtze River Delta, Pearl River Delta and Bohai Bay regions -- where the country's five main logistics hubs, Shanghai, Shenzhen, Guangzhou,BeijingandTianjinare located.

Exports will continue to drive logistics growth in main manufacturing centers and ports such as Suzhou, Ningbo, Qingdao, Dalian and Xiamen, rated by the report as China's second-tier logistics hubs.

(China Daily 02/01/2007 page14)