Logistics revenue up 26%
Revenue from China’s logistics industry totaled US$10.68 trillion in 2007, a 26.2% increase from the previous year. The Federation of Logistics and Purchasing also reported that the industry accounts for 6.9% of China’s total GDP.
Chengdu’s hub hopes
Chengdu will build the largest railway container center station in Asia, spending US$286.39 million on the facility, according to the Sichuan city’s municipal government. The station will have a total cargo throughput of 2.2-2.5 million teu, with direct lines to Shanghai, Guangzhou, Shenzhen, Qingdao, Lianyungang and Tianjin ports.
US woes hurt shipping
Transpacific shipping fell 8.8% year-on-year in both January in February, as US demand for Chinese exports slumped because of high fuel costs and a weakening economy. Three of the largest global carriers – Maersk, CMA CGM Group and Mediterranean Shipping – began consolidating shipments to cut operating costs.
Cosco expands fleet
China’s top shipping liner Cosco Holdings will add 64 vessels to its fleet this year, and plans to raise capital expenditure by 37% to US$3.32 billion. Cosco’s net profits last year rose 134% to US$2.78 billion.
Li backs Shenzhen port
Li Ka-shing, chairman of Hutchison Whampoa and the richest man in Asia, said Hong Kong port’s expansion plan to compete with Pearl River Delta rival port Shenzhen, was “wishful thinking.” Li predicted that Shenzhen would overtake Hong Kong within four years to become the world’s third-busiest cargo port.
Longest bridge opens
China opened the world’s longest cross-sea bridge in early May. The Hangzhou Bay Bridge travels 36 kilometers from Ningbo to Shanghai, cutting travel time between the two cities to 2.5 hours. The bridge came with a US$1.7 billion price tag.