Excerpt from:  China Supply Chain and Logistics Strategy
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December 05, 2007

Are coastal cities losing production to the west?

Freight train connecting Shenzhen’s Yantian port and Yunnan province’s Kunming city in operation

Many companies have started moving manufacturing plants to the west as the manufacturing costs become more expensive in the coastal cities. Although it leads to longer transit times and higher transportation costs, it offsets the expensive labor cost in coastal cities. 

China’s government has been making substantial investment in inland development during recent years. A freight train connecting Shenzhen’s Yantian port and Yunnan province’s Kunming city has began operation. The train runs every Wednesday, and the transit time is 50 hours.  

Yantian port is the 2nd largest deep water container terminal in China, the 4th largest in the world. Since large volume is coming from The Association of South East Asian Nations (ASEAN) countries “cargo from Yunnan Province and the ASEAN countries will enjoy one-stop sea and railway integrated transportation services, via Yantian Port.


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