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“Within20yearsChinawillaccountfor10%ofworldtradeandrivaltheUSAandtheEuropeanUnioninsize”
BillionUSD
96
97
98
99
94
93
92
91
95
00(est)
*Source:ChinaStatisticalYearbook
ForeignTradeGrowthinChina*
Morethan50%ofMNCdistributeto>20provinces*
Morethan50%ofMNCdistributeto>50cities*
Acceleratinggrowth
outsidetraditional
coastalareas
CentralandWest
are50%ofGNP
and62%ofpopulation
*USChinaBusinessCouncil
ThePatternofTradeisChanging
RetailSales+%butChainStoreGrowth+27%
ChainStoreshavenowrisento20%oftotal
Oneexample:
Wewillseebiggercompaniesoperatingacrossregions
Andcentralisingfacilitiesindifferentregionstolowercost
*ChinaChainStoreandFranchiseAssociation
WithGrowthcomesConsolidation
%by2005(ITtozero)
Importquotaremovalby2005
Fulltradinganddistributionrightstoforeignfirmswithin3years
Relaxationofownershiprestrictions
RestrictionsonownprovisionofservicesbeingphasedoutincludingWarehousing,FreightForwarding,Transport,ExpressDeliveryandAirCourieretc
Relaxationofprotocolprovisionsandbetterservices
LeadingtoanincreaseinChineseGlobalcompetitivenessandlocaladoptionofWorld’sBestPractice()
AspectsofChina’sEntrytotheWTO
IncreasingviabilityofrailtransportationtoHub(+1500kms)
SupplementedbyRoadtocustomer(+3000kms)
Increasingopportunityfor
MajorDistributionand
Logisticsfacilities
“Morethan55%offoreigncompaniesrateLogisticsandDistributionastheirsinglegreatestchallenge”
DevelopmentofTransportInfrastructure
*SingaporeUniversityResearchStudy
GrowthinChina
ConsolidationandCentralisation
ChangesinthePatternofTrade
WTOandGlobalCompetitiveness
ContinuedImprovementsinInfrastructure
“Onlythemostcompetitivecompaniesthatcanprovideafast
andreliableLogisticsservice,atthelowestcost,willsurvive”
Summary-KeyChangesandTrends
ChangesandTrendsinChineseLogistics
HowLeadingCompaniesWillAchieveCompetitiveness
FindingAWayForward
Agenda
AndMinimumHandling -Quality
-Errorreduction
AchievingCompetitiveness
TheLowestDeliveredCost -EfficientNetworkDesign
-SpaceEfficiency
-Productivity
-AccuracyandControl
TheFastestResponse -HighThroughput
-E-Business
CaseStudy-AccuracyandControlContainerPorts-RadioFrequency
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