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China will build 150 high-tech logistics hubs by 2025

Dive Brief:
  • China plans to build 150 logistics hubs
    by 2025, with 30 of them built by next year, Technode reported,
    citing a plan released by China’s National Development and Reform
    Commission and Ministry of Transport.
  • The hubs will come in several forms,
    including inland ports, cargo ports and airports, and will employ
    technologies such as automation and robotics to boost efficiency.
  • According to Technode, the government
    seeks to improve logistics efficiency in the country by developing
    parcel-delivery, high-speed rail, air transport and cold chain capacity.

Dive Insight:

China’s coastal cities
host some of the busiest seaports in
the world, moving tens of millions of TEUs each year.
Booming shipping,
manufacturing and populations along the Pacific coast, however, have created a
shortage of space, and now a great deal of logistics development is moving inland.

The logistics plan from
China does not specifically name where the 150 hubs will be built, but it does
list 127 cities as “qualified locations.”

Major port cities such
as Shenzhen, Shanghai and Guangzhou make the list, but so do inland cities
emerging as logistics centers, including Zhengzhou — nicknamed “iPhone City
because of a Foxconn factory — and Xi’an.

The inland cities
serve as land bridges between China and Europe and help to facilitate trade
between the major blocs.

Many of the new
logistics hubs will help with fulfillment of domestic e-commerce orders as
well, Technode reported. 
     China is the world’s largest e-commerce market,
surpassing the U.S. in 2015. Its online retail market is expected to reach $1.8
trillion by 2022, according to a report from Forrester.

The challenge,
especially in rural and underdeveloped regions, is a lack of infrastructure
needed to transport goods. 
     China’s logistics hub plan emphasizes development of
infrastructure, such as rail and cold chain, to support the hubs and help meet
the demands of consumers. 

SupplyChain Dive

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