AMR: China losing outsourcing business
Companies looking to bolster outsourcing operations appear to be bypassing China, due to the high risks and perceived lack of benefits, according to a survey by AMR Research. AMR surveyed "decision-making executives" at 133 different manufacturers and retailers throughout the world, most of which had over US$5 billion in yearly revenue. The survey also revealed that manufacturers are two to three times more likely to decrease sourcing in China.
China still suffers container overcapacity
Analysts expect the excess supply of terminal capacity in China’s container ports to reach 35 million 20-foot equivalent units (TEUs) by 2010. Xiamen and Dalian are projected to hold the lion’s share of the excess capacity, with total capacity in 2010 reaching 114% and 100% of demand, respectively. However, continued growth in container shipments through Shenzhen port indicates that the mainland’s international trade is recovering. Last month, container throughput grew to 1.8 million TEUs, up 19% from July. The daily run rate at the Shenzhen port has also increased to 59,000 TEUs in July, up 12,000 TEUs from May.
China logistics output value down 0.8% in 1H
China’s total logistics output slumped to US$6.29 trillion in the first half of 2009, a decline of 0.8% year-on-year, according to the China Logistics Information Center. Total logistics expenditure rose 4.8% year-on-year to US$2.51 billion – 1.5 percentage points higher than in the first quarter.
Dalian port grows, plans oil storage tank
Sun Hong, chairman of Dalian port, is backing plans to construct a new oil storage tank at the port later this year. The decision was influenced by a recent improvement in business. Between January and August, the Dalian port saw a 12% rise in throughput, compared to the same period last year.
Investment in railways to reach $290b by 2020
Investment in China’s railways will reach US$290 billion between 2006 and 2020, according to the 2009 China Transportation Equipment Manufacturing Industry Report. Analysts further predict that between 2006 and 2010, the rate of investment will average US$23.4 billion annually.
China to launch more high-speed trains
China plans to build 42 high-speed railway lines by 2012 in a massive system overhaul. Zhang Shuguang, deputy chief engineer at the national Ministry of Railways, said that the government hopes to add 13,000 kilometers of fast lines to the country’s rail network. The plan is to create four north-south and four east-west high-speed rail arteries in three years. The tracks would be capable of handling trains running at up to 350 kilometers per hour. Construction on the third east-west artery from the eastern city of Nanjing has already started and will link up with the Beijing-Shanghai high-speed rail line, which is due to go into operation next year.