China's logistics reforms under way

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Last updated at: (Beijing Time) Wednesday, December 10, 2003

China's logistics reforms under way

China is reviving up efforts to solve bottlenecks haunting the country's logistics industry, officials say.

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China is reviving up efforts to solve bottlenecks haunting the country's logistics industry, officials say.

"We are expected to come up with a set of new rules and policies to clean up industrial monopolies, excessive administrative intervention and regional protectionism," said Ma Liqiang, director of the Economic Operations Bureau under the National Development and Reform Commission (NDRC).

He said the commission, along with relevant ministries, will carry out taxation reforms on the industry to facilitate its development.

A set of industrial standards and regulations are to be implemented to improve efficiency in logistics companies

The regulations and policies are being drafted or will be mapped out in the upcoming years, according to Ma.

He added that under the new policies, the sector will open wider to the outside world.

Under the effort, Beijing is expected to become a major delivery and logistics base for the Asia-Pacific regions.

Ma made the remarks at the second China Senior Logistics Forum, organized by the China Communication and Transportation Association.

The event is a prelude to the first China International Logistics Week which starts in Beijing today.

Logistics is an important ingredient for a country to succeed in a globalized economy, said Alan Waller, president of the United Kingdom-based Institute of Logistics and Transport, world's leading logistics certifying organization.

Despite current achievements and a possible 30 per cent growth rate in the coming years, China's logistics market is still fledgling and muddy, said Ding Junfa, vice-president of the China Federation of Logistics and Purchasing.

A shortage of logistics professionals will play a dent on the industry, experts suggested.

The sector currently sees a shortage of at least 6 million well-trained workers, Ding predicted.

Also, outdated corporate mechanism, the lack of industrial standards, small-scale, and red tape are affecting domestic logistics enterprises.

About 60 per cent of Beijing's 40,000 logistics and transportation firms are small-scale, according to an official survey.

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