2014 Aranca. All Rights Reserved. www.aranca.

com
If you wish to reproduce or use this infographic in any format, please email us at syndicate@aranca.com
Compiled by: Mayur Varandani
Chinas logistics market : Moving north
Chinas logistics market is estimated to grow at around 10% year-on-year (yoy) and reach around
195 trillion Yuan in 2013, primarily driven by improved services, growing industrialization,
expanding domestic retail market and continued government support
Good time for growth
Recent expansion activities by foreign and local players, and continued government support toward
improvement of logistics services has further driven the growth of logistics industry in the country.
The manufacturing sector remains key to Chinas economic development. The logistics
value of industrial products is estimated to account ~91.4% share of the total value in 2013.
Estimated CAGR of Chinas total logistics value 200813E (Tn Yuan)
16.7%
Estimated share of transportation cost in the total logistics value (2013)
China logistics prosperity index, LPI (AprilDecember, 2013)*
KEY CHALLENGES
51.3%
2008 2009 2010 2011 2012 2013E
2008 2009 2010 2011 2012 2013E
97
125
158
177
195
90
Source: China Federation of Logistics & Purchasing (CFLP), The Fung Business Intelligence Centre, Aranca Analysis
Source: China Federation of Logistics & Purchasing (CFLP), The Fung Business Intelligence Centre, Aranca Analysis
Source: China Federation of Logistics & Purchasing (CFLP), The Fung Business Intelligence Centre, Aranca Analysis
Note: An LPI reading above 50 indicates overall expansion in the logistics sector; below 50 indicates overall contraction.
Source: China Federation of Logistics & Purchasing (CFLP), The Fung Business Intelligence Centre, Aranca Analysis
12.7%
34.7%
52.6% 55.3% 53.5% 53.0% 52.1% 51.3%
32.9%
33.8% 35.0%
35.1% 36.2%
11.8% 12.7% 12.0% 12.8% 12.5%
Transportation Cost Inventory Cost Management Cost
Quarter 2013
LPI
April 13
5
4
.8
July 13
52.4
O
ct 13
5
3
.6
Dec 13
5
2
.4
Infrastructure development projects are largely undertaken in
coastal areas. Inland areas still lag the appropriate infrastructure.
Warehouses in China are relatively sub-standard and do not
meet the international standards. Also, poor warehouse layout
design and insufcient material handling equipment have afected
the efciency of operations.
High toll fees imposed by the government for recovering
construction costs of roads and bridges has further afected the
industrys growth.
Although there is an increasing number of graduates in logistics
and transport, the supply of skilled labor still remains a key
challenge for the industry.
A fragmented market
Chinas logistics market is fragmented with a large number of logistics enterprises. Road transport enterprises account
for the largest share of the logistics market, in terms of the number of enterprises (790,000 during 201112).
A long way to go
Although Chinas economic growth has been driven by increasing demand for logistics services, the countrys logistics
capabilities still remain at an early stage of development when compared to other developed economies like the US and
the European Union.
!