Tag: China

China is now dealing with the need to improve its transport infrastructure to upport further expansion in the manufacturing industry – China Logistics 2006

China: the world’s most dynamic logistics market

It has been nearly three years since the author first examined the Chinese market. At the time, one of the key trends was the amazing growth of the country’s economy and the transforming effect that this was having on the logistics industry. This is still very much the case, with investment by foreign companies continuing to grow at a phenomenal pace. However the challenges which the author identified then have not diminished and in many cases have been exacerbated by the pressures which stellar growth rates have exerted on developing businesses.

The Chinese economy is presently (August 2006) growing at rates in excess of 10 per cent per annum and this is reflected in the growth in the Chinese logistics market and infrastructure. After focusing economic growth on the manufacturing industry, China is now dealing with the need to improve its transport infrastructure to support further expansion.

The Chinese economy has been heavily dependent on logistics since its growth as an exporting nation in the late 1990s. However the country will need to develop its logistics market and its physical infrastructure both qualitatively and quantitively if momentum is to be sustained.

This updated and considerably extended report includes a wide-ranging survey of shippers and logistics companies present in the market. It provides an insight into the latest trends and developments, indicating many of the problems which companies have to face. It also includes market sizing and forecasts, showing the remarkable pace of development which the industry has experienced and is likely to see in the future.

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U.S. Fedex launches single toll-free service number in China

FedEx Express, a subsidiary of FedEx Corp. and the world’s largest express transportation company, today announced the launch of a new and dedicated single toll-free customer service hotline (800 988 1888) in China and has extended the service to 24 hours a day and 6 days a week, in an effort to provide the best customer experience in the country.

Prior to the launch of the single toll-free service number in China, FedEx has been operating three customer centers in Beijing, Shanghai and Guangzhou, since 1998, with three different toll-free service numbers covering Northern, Eastern, Central and Southern China. Now the nationwide service number will enable customers, especially mobile office workers, to dial one number whenever and wherever they are, to reach local FedEx customer centers for such services as package delivery, tracking and tracing, payments, inquires and feedbacks. In addition, FedEx has also launched a separate service hotline (400 886 1888) for mobile phone users.

The new toll-free service number will be operated 24 hours a day and 6 days a week, which is manned by 200 FedEx customer service representatives from the three customer centers in China. When dialing the number, customers can also select the automatic voice response system for basic inquiries. This self-service voice system will be operated 24 hours per day.

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China launches trial reform on Postal Sector

The State Post Bureau of China (SPB), the administrator of post industry in China, declared that the provincial post bureaus in China’s five provinces and cities Tianjin, Zhejiang, Shandong, Sichuan and Shaanxi would be divided into two parts since September 4.

The new State Post Bureau of China will perform its functions like drawing out laws and regulations, supervising and administrating the postal market. At the same time, the provincial postal companies will perform their functions as enterprises to operate the express, logistics business. Insiders said the move signaled China had taken the first step in the reform of the postal sector in this country.

The post bureaus in other provinces and cities will carry out the same reform plan in succession within this year, according to the state administrator of this sector.

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China separates government functions from postal business

China’s State Post Bureau (SPB) is separating government functions from its business practices, and its mail delivery services will become more market-oriented.

In a recent circular, the bureau announces the formation of provincial agencies in Zhejiang, Shandong, Sichuan, Shaanxi and Tianjin in the name of Post Management Bureau. And other bureaus of the kind will be set up successively.

With staff members mainly coming from traditional state-owned post bureaus, these re-organized management bureaus are under the direct administration of the SPB instead of the jurisdiction of local governments.

They are responsible for implementing China’s laws and regulations on the management of postal industry, working out related polices and standards, and supervising the development of postal market.

They also take charge of special postal services such as confidential correspondence, correspondence for compulsory military servicemen, distribution of the newspapers and periodicals owned by China’s Communist Party, and the delivery of reading matters for the blind.

In the meantime, profit-making postal services will be put into a national postal corporation which competes with other companies in the postal industry, including the delivery businesses from abroad.

Since China’s accession to the World Trade Organization in 2001, a number of overseas postal delivery giants including UPS, FedEx and DHL have tried to expand their presence in China.

Under traditional mechanism, state-owned post bureaus stand as both a judge and a player, and foreign competitors as well as private companies are disadvantaged.

A senior SPB official told Xinhua that the reform is carried out in line with the demand of China’s economic reform.

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Competition on China-US Cargo Airlines to Get Stiffer

FedEx Express and NWA Cargo, the two world-leading cargo airline carriers, have both obtained permission from the US Department of Transportation to start four additional weekly flights to China, and that signals stiffer competition among cargo carriers flying between China and America, insiders said.

The newly-permitted additions, which go into effect in March 2007, will bring FedEx’s weekly flights to and from China to a total of 30, allowing FedEx to operate more all-cargo flights between China than any other US airline, according to a director for the China operation of FedEx Express.

Meanwhile, the added flights will also help NWA Cargo, Northwest Airlines Corp.’s cargo division, to further expand its freight services between the two countries, and then the carrier’s weekly all-cargo flights will be increased to 14, said a senior executive of NWA Cargo.

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