Posted on March 18, 2010

A recently published report shows that – while logistics in China continue to show impressive growth – the market is immature and needs massive re-structuring.  The economy has relied on a booming export market, and the world recession had a dramatic effect on this.  The government in China is attempting to facilitate the growth of modern logistics companies, which comply with agreed service and performance standards.  In the current situation, each region of China operates as an individual economic region with its own regulations, tariffs and fees.   The Pearl River Delta is the most prosperous of these regions; abutting Hong Kong, its port Shenzhen in the second largest in China.  The second economic region is based around Shanghai, whilst Beijing and Tianjin are the focus of the third most important region.  Container traffic growth fell dramatically during the financial crisis, and the report says that in future development will probably be focussed on rail freight.

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