Tag: Asia

Chinese government to let postal system run independently – report

Posted by | Nov 2, 2006 | |

China is progressing with plans to convert its postal system into a 10 bln usd standalone entity, a change that would spin off one of the last businesses still run directly by the government, the Wall Street Journal reported, citing a government spokesperson.

The State Council, the government’s highest administrative body, has approved of the plan which was finalized in August. The plan calls for the post office’s business operations, which use the name China Post, to be injected into a new, state-owned company, the newspaper reported.

The State Postal Bureau will continue to exist but is being changed into a purely regulatory organization, the report added.

That shift could address some of the criticisms China has faced over its handling of the market for delivering documents and parcels. The huge and fast-growing market has attracted many of the world’s big express-delivery companies, including FedEx Corp, United Parcel Service and Deutsche Post AG unit DHL.

The foreign companies that compete with China Post have long complained that the government agency also had regulatory power over them, the newspaper said.

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Shanghai Airlines to build global cargo network

Posted by | Nov 1, 2006 | |

Shanghai Airlines Cargo International Co., Ltd., the cargo venture of Shanghai Airlines Co., Ltd., started to make a profit of more than CNY 2 million in September after coming into production in July.

The venture, jointly set up by China’s first commercial airline and Sino Prime Ltd. and Juniper Estate BV, two subsidiaries of Taiwan’s EVA Airways Corp., is predicted to see its profit grow sharply in October.

Shanghai Airlines Cargo International Co. got one MD-11 all-cargo plane and two Boeing 757 freighters from Shanghai Airlines, who holds a 55% stake in the venture. In late July, it introduced one Boeing 747 freighter.

It has captured an 11% share in the air cargo market in Shanghai, the country’s economic center, only three months after its inception. Within the year, it will also buy one MD-11 freighter, making it own five large-sized all-cargo aircraft merely half a year after its establishment.

Shanghai Airlines Cargo International Co. has launched routes to Los Angeles, Frankfort, Singapore, Bangkok, Osaka, Bombay, Macao, Hong Kong, and so forth, laying solid foundation for it to make a profit.

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DHL expands Time Definite Delivery service

Posted by | Nov 1, 2006 | |

DHL, the world’s leading express and logistics company, has further enhanced its Time Definite Delivery (TDD) service to include parcels. The expansion will take effect from 1 November 2006.

A suite of time-definite delivery products, DHL’s TDD portfolio comprises StartDay Express for guaranteed delivery by 9 a.m., and MidDay Express for delivery by noon. Until now, customers have been able to send documents only with StartDay Express. With the latest service enhancement, it will be possible to deliver parcels as well by 9 am the next business day to five countries: Hong Kong, Taiwan, the Philippines, Thailand, and Singapore, and by 9 a.m. the second business day to Australia. In addition, customers will now also be able to send parcels to the Middle East using MidDay Express. with delivery by noon on the second business day in the United Arab Emirates (UAE).

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EPCglobal Inc initiates RFID pilot project to enable sea container visibility between Hong Kong and Japan

Posted by | Oct 30, 2006 | |

EPCglobal, the not-for-profit standards organization dedicated to driving global adoption of the Electronic Product Code for supply chain excellence, today announced that the Transportation and Logistics (TLS) Industry Action Group has initiated a RFID (Radio Frequency Identification) pilot program. The Ministry of Economics, Trade and Industry (METI) in Japan is an active participant in the TLS Action Group and is providing extensive support for this important pilot.

The first phase of the pilot, which is planned to be completed in February 2007, will assess the use of both passive and active UHF EPC/RFID tags for sea-shipment of cartons and containers between Hong Kong and Japan. Associated data will also be exchanged through EPC Information Services (EPCIS). The Hong Kong EPC Network developed by GS1 Hong-Kong will be used to communicate with other EPCIS networks in Japan. A second phase, scheduled for completion in September 2007, will be handled between Shanghai and Los Angeles.

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Distribution remains a challenge in China. Is there hope?

Posted by | Oct 30, 2006 | |

Distribution remains a challenge for foreign companies in China, but recent developments offer hope.

Moving goods around China, long a bugbear of foreign companies operating in the country, is getting easier. This is thanks to rapidly improving infrastructure and a number of key regulatory changes allowing foreign freight-forwarders to set up 100%-owned ventures and foreign companies in most sectors to operate their own distribution arms.

For specialist logistics businesses, the big change came at the end of 2005, when freight-forwarders were allowed, as agreed under the terms of China’s World Trade Organisation (WTO) accession agreement, to set up wholly foreign-owned operations. For other companies, particularly manufacturers, the introduction in 2004 of a whole new category of business—the foreign-invested commercial enterprise (FICE)—gave foreign enterprises the right for the first time to establish both wholesale and retail businesses.

A subsequent relaxation of the rules that came into effect in March this year allows local rather than central commercial authorities to approve most FICE applications. This has led to a major fall in processing time, and a huge surge in approvals. In Shanghai, the country’s biggest commercial centre, the 600-plus FICEs established in the first half of 2006 outnumbered the entire total for 2005. While various restrictions remain on FICEs’ freedom to operate, particularly on the number of outlets a company can operate in any one region, there are now no geographical limits on where a company can set up such businesses.

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