Logistics market in china

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Information about Logistics market in china
Business

Published on October 23, 2014

Author: AllanWu

Source: slideshare.net

Description

short intro on what is China really a good place to start your logistics business?

1. Is China the Next Biggest Market for Logistics?

2. Yangshan Port, World busiest container port. 32.5 million TEUs in 2012. Tokyo only has 4.2 million TEUs.

3. Shanghai Pudong Airport, world 3rd busiest cargo airport. Handled 2.9 million tons cargo in 2013. Narita ranked 10th.

4. China has the 3rd longest road network in the world, over 4.4 million km, 110 times around the world.

5. But in reality, domestic logistics is far from efficient.

6. Bad conditions of warehouse, truck control and road management, cost of logistics is well above 15% of GDP.

7. Cost of raw material Cost of transport Manufacturing Profit In Japan, 10 dollar worth of goods would only take out 5-7% as logistics cost.

8. Cost of raw material Cost of transport Manufacturing Profit That is a different story in China.

9. Foreign firms have been granted only limited licenses, burdened with high cost, hard to compete with local rivals.

10. Road transportation is still dominating domestic logistics market in 2013.

11. Trend 1: Manufacturing Locations Shift to Inland

12. Trend 2: Retail and Consuming Goods Market is Booming

13. Trend 3: Large Investment of Inland Rail Network by 2020

14. Trend 3: Large Investment of Inland Rail Network

15. Trend 4: Market Demand for Improvement in Efficiency

16. Trend 5: New National Policy

17. Biggest Challenge: Government Co-ordination

18. Biggest Challenge: Government Co-ordination Current government has a complex somewhat inefficient structure to manage logistics.

19. Is China really the next big potential Market for logistics? You make your own interpretation.

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