1 Sept 2006
Private Enterprises Swarm into Wenzhou Logistics Sector
According to statistics from the Wenzhou industry and commerce administration, the number of newly established enterprises in logistics related sectors such as logistics, courier and warehousing has been increasing at the rate of two per day since the beginning of this year. As of 24 July 2006, there were 440 new enterprises of which the majority are private enterprises.
The rapid development of Wenzhou's light industries in recent years has fuelled demand for strong logistics support for the movement of massive volumes of light industrial goods and raw materials. At the same time, competition is intensifying as multinationals and retail giants enter the market, and growing numbers of mainland manufacturing and commercial enterprises are seeking to break into international markets and go global. The rapid increase in logistics has also generated great demand for third party logistics services.
Due to its huge growth potential, the modern logistics market has become a new investment hot spot. Leading players such as Takkyubin, DHL and Wellcorp have already entered the Wenzhou market. Known for their business acumen, Wenzhou private entrepreneurs are quick in making forays into the logistics sector in search of new business growth. For instance, Wenzhou Xinhua Logistics Co Ltd controlled by the China People Electric Appliance Group plans to establish a flagship logistics operation in Wenzhou by investing Rmb50 million. Meanwhile, Delixi Group has teamed up with Wumei Group of Beijing, Xin'ao Group of Hebei and Nanxiang Group of Anhui to form an investment company which plans to invest Rmb50 billion in building 20 logistics parks across the mainland.
Established in Wenzhou recently, Dongyi Logistics Co Ltd has been approved by customs to set up Dongyi Public Bonded Warehouse in Wenzhou to provide bonded warehousing services to footwear manufacturers in handling import cargoes and cargoes in transit for processing, as well as temporary storage service for foreign investors. A number of logistics enterprises newly registered this year such as Jinzhou International Logistics Co Ltd and Leqing Zhongji Logistics Co Ltd are relatively large in scale, with registered capital exceeding Rmb1 million.
According to statistics from the Wenzhou industry and commerce administration, over 1,000 logistics enterprises were registered from the beginning of 2006 to 24 July 2006, with a total investment of Rmb3.92 billion. Among these, 637 have "transport" in their company name, 46 have "logistics", 87 have "courier", and 277 have "warehousing". At present, most of these logistics enterprises are doing good business, with a combined daily handling capacity exceeding 500,000 tonnes. Industry players estimate that Wenzhou's logistics sector is posting an annual output value of Rmb2.2 billion.
To provide guidance to industry players in aligning with international practice and serve as an industry body to facilitate regulated development of the industry as a whole, the Wenzhou Logistics Association was recently approved and is being set up. The city also plans to build 12 logistics parks with a total area of 20 sq km over the next five to 10 years. These include three logistics parks, four commercial logistics distribution centres, and five integrated logistics bases. Efforts will also be made to nurture a number of key logistics enterprises and speed up the establishment of an information platform on logistics.