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Overseas investors eye Chinese logistic market
( 2001-07-02 22:28 ) (8 )

Singapore-based APL Logistics, one of the world's leading company in logistic sector, has joined hands with two Chinese companies to tap the logistic market in China.

The two Chinese companies, one based in Shanghai and the other, in Shenyang, capital of northeast China's Liaoning Province, are the country's major shipping companies in railroad and highway express transportation respectively.

Rick Moradian, APL's president for Asia and the Middle East, said despite an overall slowdown in the world's economic growth, China's sustained momentum of development and high market demand have provided a good opportunity for overseas investors to access its logistic market. He sees great potential for cooperation between Chinese and international logistic enterprises, which are strongly complementary.

According to Moradian's analysis, China's output in the logistic sector is increasing 27 percent year-on-year, 10 percent higher than the United States and 9 percent higher than Canada and Western Europe respectively.

APL Logistics has set up branches in seven Chinese coastal cities including Shanghai, Dalian, Tianjin, Qingdao, Xiamen, Shenzhen and Nanjing. Five more branches are expected to be opened in the coming two years.

In another development, Danish shipping giant A.P. Moller Maersk Group has set up a national distribution center in the western suburbs of Shanghai to provide logistic services ranging from procurement and warehousing to transportation.

During his recent visit to China, A.P. Moller Maersk Group's President Maersk Kinney Moller said he hopes to participate in Shanghai's port construction, management, shipping and logistics on more often.

A national meeting on logistics held in Shanghai recently showed that more and more enterprises have come to realize that with economic globalization, competition lies not only in the performance or quality of their products, but also in their logistics capacity.

On one hand, consumers have more demands on efficient shipping and timely delivery of goods, and on the other hand, advanced logistic management plays a vital role in cutting costs and enhancing competitiveness.

Coastal cities including Shanghai, Tianjin and Shenzhen have listed logistics as a rising industry in the 21st century. Meanwhile, experts say China should enhance cooperation with international companies to improve its logistic management.