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Domestic and foreign business representatives talk about cooperation at the event. Liu Xiaoqing / for China Daily

With booming trade links to Southeast Asia and the Indian Subcontinent, Kunming is expected to become a regional logistics hub in 20 years, Ruan Fengbin, the city's deputy mayor, told reporters before the China International Logistics Week opened in the city yesterday.

Since the China-ASEAN Free Trade Area became operational in 2010, authorities have stepped up efforts to improve Kunming's logistics infrastructure, according to Ruan.

With a number of railways, highways and an air transport network reaching other parts of China and neighboring countries, Kunming is already the cargo hub for Southwest China.

But new facilities are still planned, including five international and national highways, five international dry ports, 10 logistics parks and 14 cargo distribution centers.

"Logistics is an industry that is now bringing great changes to the world," Ruan said.

"Today in Kunming, we can have easy access to commodities from all over the world - fruit from Thailand, red wine from France and ores from Australia."

Yet Ruan admitted there are still many challenges ahead.

One of the problems is high transport costs to and from the landlocked city.

"Logistics now account for almost 23 percent of local gross domestic product, much higher than the national average of 18 percent," the deputy mayor said.

Ruan said joint efforts by governments and logistics enterprises are needed to solve the problem, such as expansion of infrastructure facilities, the wide use of information technology and tax breaks.

Ruan also urged closer cooperation between Chinese and foreign logistics companies.

In February, he headed a delegation to visit Laos, Thailand, Malaysia and Singapore to promote the city's logistics week.

As he traveled on the highways from Kunming to Bangkok and Singapore, it was also a research trip on logistics.

"We drove all the way to Singapore during an 11-day trip with at least 10 hours in the cars every day," Ruan said.

"We are satisfied with the new highway. Except for a bridge linking Laos and Thailand over the Mekong River, the project is almost complete," Ruan added.

But he noticed that there was not too much traffic on the road.

Ruan discussed the issue with local governments, agreeing that closer partnership among logistics companies is the key to the industry's development.

"The governments in the regions already have close cooperation, but the links among the enterprises are not close enough," Ruan said.

He suggested logistics companies should learn from travel agencies to forge "seamless cooperation".

"A tourist group trip from Kunming can be well arranged by a travel agency in Bangkok because of the cooperation between agencies in different countries," Ruan said.

"This should also be used in the logistics industry."

Ruan said he believes the ongoing logistics week should be a good opportunity to bring together the region's logistics enterprises for forging closer partnerships.

You may contact the writers through liyingqing@chinadaily.com.cn