[photopress:logistics_China_figures.jpg,full,alignright]China’s fixed-asset investments in logistics-related sectors hit US$126 billion in the first three quarters of the year, up 18.8%. All of the figures are up and all of them are somewhat mind-boggling. Indeed, some are so large it is difficult to get a handle on them. During that period:
Investments in transportation reached $95 billion, a year-on-year rise of more than 13% and 76% of the total logistics fixed-assets investment.
Trade-related fixed-asset investments came to RMB$22 billion, 31.5% higher.
Warehousing involved an investment of RMB$6.6 billion, 62.7%.
Distribution, circulation processing and packaging segments attracted more than RMB5 billion, up 31.3%.
Logistics makes up 18.3% as a portion of total production costs on the mainland.
The China market imposes logistics costs on businesses that can account for up to 21% of the product costs, which is more than twice the average for developed markets.
The online consultancy Eyefortransport, in one of its China Logistics reports, said the creation of a competitive and effective transportation and logistics industry was one of the key criteria for China’s success as a global trade superpower..
Source: CargoNews Asia