Executive summarySection 1. Shipping and trade build-up in China — Still dynamic trading giant
— Container traffic explosion
Section 2. Seaport investments in China — Need for multi-billion annual investments in Chinese ports
— China encourages foreign private-sector investments in ports
— Regulations on foreign port investors
— China's 5-year plans on port infrastructures - targets and results
— Investors and projects in seaport container terminals
— Bohai Rim port projects
— East China/Yangtze River port projects
— Pearl River Delta port projects
— IPOs of Chinese port operators
— Opportunities in seaports in China
Section 3. River infrastructure developments and investments — Role and growth of river transport in China
— Links between river and coastal ports of the Yangtze and Pearl rivers
— China's development plans for river shipping - targets and results
— China's infrastructure spending on the Yangtze River artery
— Problems and current inefficiencies in river shipping
— Chinese public domestic river shipping companies
— Investors in river port projects
— Summary of business and investment opportunities
Section 4. River and coastal shipping: the last protected market? — Regulations on foreign companies' involvement in coastal shipping
— Restrictions on foreign companies' involvement in river shipping
— Market shares and position of protected Chinese companies
in domestic shipping
— Lack of opportunities in domestic shipping
Section 5. Logistics and inland transport issues — Inefficiency of logistics activities in China and red tape
— High logistics costs-to-GDP ratio
— Fragmentation and red tape
— Logistics skills, cargo tracking and IT practices
— Length and complexity of Chinese supply chains
— Growth of total logistics and outsourced logistics in China
— International and domestic logistics players
— Logistics parks
— Inland transport costs and hinterland development
— China's rail capacity shortages and ambitions
— Lack of rail transport capacity
— China's rail development ambitions and the reality test
— China opens its rail industry to foreign capital and private sector
— Rail transport opportunities in China
— Freight forwarding and logistics opportunities in China
— Opening of market to non-Chinese forwarders and shipping companies
— Logistics opportunities in China
Tables- Leading exporters and importers in world merchandise trade, counting the EU 25 countries as one trading bloc
- Key economic indicators of China
- Development of Chinese exports in value, by destination
- Development of Chinese imports in value, by origin
- Development of exports from China, by geographic range
- Comparison of port container throughput growth between countries
- Changes in the position of China's major ports relative to the leading international container ports
- Container throughputs of China's major coastal and river ports
- Port expansion in China by region and by major terminal project
- Cargo volume shipped on China's major rivers
- Examples of Yangtze River transportation costs
- Trucking/barge cost comparison in western Pearl River Delta
- Domestic feeder and local container port activity handled by the main ports of China, 2004-2005
- Selected domestic Chinese coastal services, February 2007
- Domestic PRC container volumes of Cosco and China Shipping
- Container Lines, 2004-2006
- Factors of logistics performance in China
- Complexities and operational cost impact of Chinese supply chains
- Projected total logistics spend in China
- Projected outsourced logistics market in China
- Main companies managing logistics in China
- Major service problems of China's rail sector
- Chinese and foreign shareholders in China's first rail container transport joint venture
- Liberalisation of foreign direct investment in China's transportation sector under WTO commitments
- Logistics role of bonded distribution centres in China
Figures- Development of China's exports and imports
- Map of location of China's main coastal and river ports
- Geography of the Yangtze River and the port of Shanghai's hinterland
- Geography of the Pearl River Delta
- Resolution of four major structural deficiencies required to
- accelerate inland development
- Comparison of rail networks of China and other countries
- China's rail infrastructures - current and targets
- Initial network map of 18 intermodal rail container terminals
Through detailed research and analysis carried out by a team of European and Chinese researchers, Drewry examined the industry sectors of
China's container transport and logistics which must support its international trade growth.
The port, river and inland transport links of container shipping in China:- IPOs in the port industry and the opening up of the undeveloped rail container transport sector
- Growth of river transport and links between river and coastal ports
- Regulations and restrictions for foreign companies engaged in river transport, transhipment, ports and freight forwarding
The logistics market in China:- Size of China's logistics market and trends in outsourcing
- Logistics competition in China
- Logistics parks
- Fragmentation and consolidation in freight forwarding, trucking and logistics in China
- Areas of opportunities in inland transport and logistics in China
Opportunities in China's Container Transport and Logistics Sectors Drewry's report provides key insights into the industry and the growth of the market. Its data and analysis include:
- Rate of export growth by region and prospects of demand shift
- Port capacity increases by region
- River and rail container traffic
- Factors affecting the logistics performance of China and comparative inland container transport costs
- Areas of opportunities for logistics and transport companies and for exporters/importers, including the new logistics parks
Main findings The Opportunities in China's Container Transport and Logistics Sectors report provides an independent and detailed assessment of the port, river transport, rail transport and logistics sectors, with a particular focus on container transport and the integration of international supply chains.
Sea ports Drewry estimates that China needs to build, every year, between 25 and 30 berth of 350 metres for sea ports, as well as smaller container berths for river container barges and feeders. However, as China privatises its major ports through IPOs, some port regions now face future over-capacity.
River infrastructures The central government's 11th Five-Year Plan (2006-2010) focuses on the development of central China. River ports are becoming more integrated into China's international transport system and this is borne out by the increasing connections and synergies between Yangtze River ports and Shanghai/Yangshan.
There are significant opportunities for growth and investment in river ports, particularly on the Yangtze River, and foreign investors have started seizing such opportunities.
River and coastal shipping in China Despite lobbying from foreign operators, river and coastal shipping in China, including for transhipped international containers, should continue to be closed to international competition. However, this market is vast and there may be some opportunities for limited joint ventures using Chinese-flag barges.
Logistics and inland transport issues and opportunities Generally speaking, freight distribution systems in China are outdated and inflexible, with the result that moving goods to and from the factory, port, warehouse or retail outlet is slow, inefficient and, above all, expensive.
Inland transport costs to the coast from provinces like Sichuan, for export to overseas markets, are often higher than the maritime transport cost from China to the destination port, while inventory management, trucking and rail transport are currently inefficient.
In 2006, rail container traffic in China is estimated to have increased from 3.0 to 3.3 million TEUs, or by 10%. This growth rate was much less than the increase in the maritime port container throughout in China, currently running at about 22% annually.
Opportunities in China's Container Transport and Logistics Sectors categorises and analyses four major factors currently making up China's logistics strengths and weaknesses: Infrastructure, Regulations, Industry Structure and Management Practices. The report also identifies specific strategic and business areas of opportunities in China.
![Drewry - Independent Maritime Advisors [logo]](/i/drewry-publishing.gif)
