Chongqing Port

101451 Resource 94086 93210 94146 1125387488901 1201212947358 Controlled Chongqing to Shanghai - The China Supply Chain Moving Inland

Manufacturing Moving to Western China Creates New Supply Chain Challenges

The logistics infrastructure in western China is improving along with the overall trend for companies to move manufacturing inland. Most of the infrastructure improvements are taking place along the Yangtze River corridor between Chongqing and Shanghai. The Chongqing port expects to have a throughput capacity of 900,000 TEUs within the next 5 to 10 years. Chongqing will serve as the distribution center for exports originating from China’s southwest. As companies continue to move manufacturing to western China it will become critical to devise a sound supply chain strategy which takes into consideration costs and service levels in this less developed area of China. With the completion of the 3 Gorges project some time in 2006, transit times and costs are expected to be reduced. Currently, the transit time from Chongqing to Shanghai is estimated to be 7 to 15 days. An average quote is approximately 12 to 15 days at a rate of CY-CY freight: RMB3000/20’ ; RMB5000/40’. Transit time is not consistent due to weather, fog, 3 Gorges traffic jams, floods, etc. Currently, choices are limited for shippers exporting from Chongqing. Companies importing from China with product originating in Chongqing basically can only ship FCL, especially if their volume is low. On the positive note, the Chongqing export business is pretty stable since international shipping companies have set up offices all along the Yangtze River and they use their own containers. However, the flow of imports from Shanghai to Chongqing are proportionately less, therefore the cost of repositioning the containers for export ultimately gets passed on to the shipper. The Yangtze River corridor reaching from Chongqing to Shanghai will continue to serve as the main arterial link between China’s interior and the coast. The determination of whether to utilize the strategic location of Chongqing as a logistics hub may require distribution strategy studies that consider the entire network from a cost and service point of view. Also, an analysis of repositioning a plant or distribution center will consider some of the following factors: <ul><li>Land availability </li><li>Local tax environment </li><li>Proximity to highways</li><li>Proximity to major customers </li><li>Labor availability, quality and costs</li><li>Environmental issues </li><li>Carrier availability </li><li>Rail access/airport access/waterway access</li><li>Proximity to vendors/raw materials </li></ul> 9 application/xml false china distribution china export china import china logistics china manufacturing china sourcing china strategy china supply chain yangtze river Chongqing Port Website with Info on Chongqing Port (In Chinese) http://www.shippingchina.com/?package=ec&module=nport&act=detail&id=613 Chongqing Port Information Network Website for Chongqing Port (In Chinese) http://www.cqg.com.cn/1080863910568919040/index.html Mozilla/5.0 (Windows; U; Windows NT 6.0; en-US; rv:1.8.1.11) Gecko/20071127 Firefox/2.0.0.11 127.0.0.1 127.0.0.1 Establish 208.105.4.154 false true false false true 187565 false false true false false false true 94086 blog blogsite/ChinaSupplyChain/web