| Oakland,
Singapore, Oakland, CA, London, April 25, 2003 – A white paper published today
on the challenges and opportunities for China’s transportation and logistics sector
highlights the importance of thinking beyond Shanghai when considering the needs
of China’s exporters and importers.
The report, published by Drewry Shipping Consultant Ltd (Drewry) in association
with global container carrier, APL, and sister company, APL Logistics (APLL) says
that while Shanghai is the main strategic hub for Central China, effective strategies
for the entire country are increasingly important as the demand for the products
of multinational companies rises within China and manufacturing for export extends
further into the interior.
Author, John Fossey says his research revealed that despite most investment still
concentrating in the Shanghai region, China’s “Go West” policy was creating considerable
interest in other regions further inland. “However there is an urgent need to
overhaul existing through-transportation networks to expedite the carriage of
goods from China’s underdeveloped interior to its ports, “ he said.
“The Yangtze River corridor stretching from Shanghai to Chongqing will continue
to be the main arterial link between the China’s interior and coast,” Mr Fossey
said, “but there will be immense opportunities for freight carrying in other provinces
such as Anhui, Henan and Sichuan, which still have relatively low levels of containerisation.”
The paper also concludes that while the opportunities for those involved in the
manufacture and movement of products through the global supply chain are hampered
by a host of barriers, a desire to change and embrace international best practice
is prevalent in China.
“We are seeing positive movement and indications that China would like to move
faster in reducing the red tape and modernizing infrastructure to ease bottlenecks,
but we have only really scratched the surface,” said Brian Lutt, head of APL for
Greater China.
Port capacity and facilities within China are also cause for concern, the paper
said, especially considering that by 2005, it is estimated that the total volume
of China’s imports and exports will exceed 40 million twenty-foot equivalent units
(TEU).
China’s third-party logistics industry is in its infancy, but it is expected to
grow on average by 20-25 percent over the next five years. Government-led reform
and multimodal transportation infrastructure development will be hard pressed
to keep pace, the white paper concludes.
“I expect the most intense activity to occur during the middle years of this decade,”
said Rick Moradian, President, APL Logistics, Asia. “It will be spurred on by
the huge trade flows expected to result from China’s entry into the WTO and the
growing realisation that supply chain management solutions can drive real benefits
throughout the business cycle,” Mr Moradian said.
There is no shortage of companies that want to get involved in China, but the
white paper concludes that the winners will be those with a long-term commitment
to China, who have invested in transportation networks and infrastructure and
who can provide IT enabled value-added logistics services.
About
Drewry
Drewry Shipping
Consultants (Drewry) provides commercial, economic and technical consulting
services to the international shipping industry. The company is headquartered
in London, with a support organisation in India and a number of overseas representatives.
Established in 1970, Drewry’s activities are grouped around the business practices:
- Bulk
Shipping
- Containers,
Ports and Logistics
- Specialist
Shipping
- Technical
services
Drewry
is a specialist, not a generalist company. Its expertise lies in shipping and
related maritime and transport sectors. It has been built by providing specialised
advice to leading companies in these industries over three decades.
For
further information, please contact:
John Fossey
Drewry Shipping Consultants Ltd,
Drewry House
Meridian Gate
213 Marsh wall
London
E14 9FJ
Tel: +44 (0)20 7538 0191
Fax: +44(0)20 7987 9396
About APL and APL Logistics
APL provides customers around the world with container transportation
services through a network combining high-quality intermodal operations with state-of-the-art
information technology. APL
Logistics is a sister company of APL and offers end-to-end supply chain management
services enabled by leading information technology. APL and APLL are wholly owned
subsidiaries of Singapore-based Neptune
Orient Lines (NOL), a global transportation and logistics company.
Media
inquiries:
APL/APLL
Americas:
Scott Dailey, tel: +1-510-272-8208 or scott_dailey@apl.com
Asia/Middle East:
Paul Barrett, tel: +65-6371-5541 or paul_barrett@apl.com
Europe:
Michael Haig, tel: +44-1737-248-300 or michael@isiscomms.com
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