|  | Excerpt from: China Supply Chain and Logistics Strategy
| | | November 08, 2005 | | Comparison With Other Logistics Zones | Due to the ever increasing demands on logistics services, logistics parks have been appearing rapidly in China. Local governments, real estate developers, and logistics service providers are pushing a wave of construction of logistics parks. However, blind rapid development of poorly planned parks is leading to duplicated construction and irrational layout. It is important to closely analyze the available logistics parks, taking into consideration the infrastructure, transportation, geographic positioning, availability of skilled labor, etc. An effective logistics park requires developers and operators to create and manage a functioning system involving transportation, warehousing, communication, distribution, information management, and a labor pool of skilled personnel. The Lingang Economic Group claims their zone will meet these challenges. The Yangshan port and Linggang Industrial Area are still at the early stages of implementation. Yangshan will not begin operation until the end of this year and it is reasonable to assume it will take several years for a maturing of the infrastructure to take place. However, forward thinking supply chain mangers will start thinking about the problem today.
Waigaoqiao Free Trade Zone (FTZ) – The old port of Baoshan can only handle medium sized vessels <4000 TEU. Only road transportation is available, not multimodal. The port is not connected with the zone and there are bottlenecks and congestion at the port. There exist complex customs check procedures both at the port and free trade zone. The management of the berth and port are separate, with 2 gates for customs inspection and philosophical differences between the berth and port management. Also, bonded areas are losing their appeal with changes brought about with WTO. Business functions include manufacturing and processing, international trade, warehousing and logistics, and exhibition.
Waigaoqiao Bonded Logistics Park (WBLP) – The old port of Baoshan can only handle medium sized vessels <4000 TEU. Only road transportation is available, not multimodal. With the WBLP, it is claimed that the port is more fully connected with the park and that bottlenecks and congestion at the port may be reduced as a result of preferential policies and simplified customs procedures. The Bonded Logistics Park is still at the early stages of implementation. Policies and regulations are still evolving and it will take some time to learn whether companies are truly realizing the claimed benefits. Business functions include warehousing and logistics (simple processing), de-consolidation/consolidation, kitting, transshipment. However, no manufacturing is allowed.
Export Processing Zones (EPZ) - Not located at ports. Business function focused on export processing. Streamlined direct customs clearance.
Lingang Industrial Area– The Lingang Industrial Area consists of bonded and non-bonded functions. When comparing with the other bonded zones in China, pay special attention to the “Bonded Port” area of the Lingang Industrial Area , since this is where the most significant differences exist. The new port can handle large vessels (>5000 TEU), multimodal transportation, manufacturing is allowed (bonded manufacturing inside the “Bonded Port”), and with the combined functions of the export processing zone, free trade zone, and bonded logistics park, it is claimed this park will offer the most open and favorable policies in China. Shanghai Customs will be equipped with a powerful computer system connecting and covering the management of goods at the outlet of the port area. There will only be one customs inspection gate at the entrance of the “Free Port” (referred to as “Bonded Port in Chinese).
With the rapid growth of China’s economy combined with the large potential market in the Yangtze River Delta, multinational companies have a strong need for integrated logistics services. The Lingang industrial area and logistics parks are receiving large support from the central government and the Shanghai government. The Lingang zone plans to develop world-class infrastructure, comprehensive functionality, efficient management and operation, and a uniform logistics information platform.
The Lingang Industrial Area will provide 5 means of Transportation:
- Deep Water Port
- Airport
- Rail Hub
- Highway
Canal (Undergoing Planning)
Five Zones in Lingang
- Logistics Park: Distribution & Warehousing Facilities (Bonded “free port” area/ Non-Bonded), Customs.
- Main Industrial Area: Modern Equipment Industry, Export Processing Industry, and High-Tech Industry.
- Comprehensive Area: High-Tech City Industries, IT, Education, R&D, Tourism and Holiday / Leisure Residences and Business Services.
- Main City Area: Municipal Public Service Facilities and City Residential Areas.
- Heavy Equipment Industry Area
: Position of Lingang Industrial Area
32 km to Yangshan Port
37 km to Pudong Airport
75 km to Shanghai CBD
80 km to Hongqiao Airport
| | |
|
|
| | |
