China_2016.pdfVIP

China 2015: Transportation and Logistics Strategies Leadership requires innovation, expansion and redesigned networks s China’s economy grows, so grows its transportation and logis- tics industry. China is becoming a more mature and self-confident Acountry and a driving force in the new global economic structure, and this is bringing new challenges and opportunities to the five sectors of the country’s transportation and logistics industry—express, road freight, air freight, contract logistics and international freight forwarding. How can Chinese companies improve the country’s transportation and logistics environment? Leadership in this industry requires innovation, expansion and redesigned networks. China’s extraordinary economic growth contin- redesigning their networks, and improving their ues. Even as the global economy struggles to cost structures to meet the new challenges. recover from the financial crisis, various statistics indicate that China’s economy has emerged resil- Industry Trends in China ient, with rapid growth expected to last into the Despite the Chinese economy’s extraordinary foreseeable future. success, China’s transportation and logistics indus- In this context, the transportation and logis- try as a whole remains in the early stages of devel- tics industry in China is also poised for major opment. Fragmentation and intense competition growth over the next five years, portending signif- highlight a market in which competitors offer icant changes for its five main segments: express, similar and limited services. road freight, air freight, contract logistics and Yet Chinese macroeconomic trends will con- international freight forwarding (see figure 1 on tinue to have a major impact on the