China's logistics industry being rationalized

Ou Xinqian, Vice Minister of Industry and Information Technology

China is smoothing and polishing its logistics to cope with an infrastructure boom that lies ahead.

It is undertaking a series of measures to spur its logistics industry which has such importance to the national economy. All comments about it seem to revolve around the  problem of a fragmented industry structure.

Although it was thought worldwide that China met the challenge of last year’s snowstorm pretty well many commentators suggest that under the heavy weight of snow and sleet, the seemingly strong logistics system ground to a halt.

True a number of airports shut down and a number of roads in South China were blocked but that is not an unique problem and resolution.

Other countries have their logisitics systems collapse in a heavy rain. (In Britain light rain will often do the trick.) Nevertheless this was seen as an example of the failings of an integrated logistics system.

Policy-makers have learned a lesson from the transport crunch. The State Council has devised a revitalization program for the next three years in an effort to make the transport system more efficient, and more importantly, boost the entire logistics industry.

It is the first time the government has created such a major package, laying out long-term goals for the industry. And analysts say it could serve as a curtain raiser for future policies in the sector.

The Beijing Review reported Ou Xinqian, Vice Minister of Industry and Information Technology said, ‘Logistics has always been at the heart of the national economy. As the transport and distribution basis for a number of major sectors, it holds the key to the country’s industrial recuperation.’