China to build up its logistics hubs
Fu Y uning, president of Hong Kong-listed port operator China Merchants (Holdings) International, told an audience at TOC Asia in Hong Kong that the only hurdle China has to overcome to ensure the continuing growth of its shipping industry is the underdevelopment of maritime logistics centres.
He told the assembled crowd of international port operators that China Merchants holds a 36% share of all the boxes handled in China, so the development of the industry is a prime concern of the port-operating behemoth.
In fact Dr Fu appeared to concede the opposite: that recent ambitious port expansion plans — particularly in the northeast of the country — are likely to result in overcapacity for at least three to five years, despite the fact that box growth is expected to continue to be 15% per year until 2010.
Dr Fu said the only problem on the horizon is that maritime logistics in China are significantly limited in their functionality and the operational competence of the infrastructure.
He told the assembled crowd of international port operators that China Merchants holds a 36% share of all the boxes handled in China, so the development of the industry is a prime concern of the port-operating behemoth.
In fact Dr Fu appeared to concede the opposite: that recent ambitious port expansion plans — particularly in the northeast of the country — are likely to result in overcapacity for at least three to five years, despite the fact that box growth is expected to continue to be 15% per year until 2010.
Dr Fu said the only problem on the horizon is that maritime logistics in China are significantly limited in their functionality and the operational competence of the infrastructure.
