Vladimir Yakunin

Russian Railways will need to cut spending next year and wants about $6 billion in loans. Partly as a result it has asked China to help develop rail links from the Pacific Ocean to Europe.

Vladimir Yakunin, president of state railway monopoly RZhD, said China had reacted positively to an offer to join RZhD’s venture with Deutsche Bahn to carry out the project.

The project to link rail systems from the Pacific coast to Western Europe is in the early planning stages. A test run of several rail wagons from the Beijing to Hamburg in Germany was organised in January with the participation of RZhD.
Source: CargoNews Asia

Daxie: a $529 million port venture

China Merchants and Citic Group announced willdevelop a new port in Daxie to capitalise on the long-term export growth potential in the Yangtze River region.

Analysts predicted a total investment of $529.1 million in the port, known as Port Zone C and located in Ningbo Daxie Development Zone. It will have a quay length of 1,600 metres and accommodate three or four container berths.

China Merchants will hold 20% of the joint venture, while Shanghai
Citic Port Investment will hold 41%. Ningbo Port will have 39%, according
to the website of China Merchants.

The port is adjacent to the China Merchants International Terminal Ningbo Daxie, 45% owned by China Merchants.
Source: CargoNews Asia

The awards are part of CHaINA ‘08, China’s largest supply chain event, taking place on Nov. 5-6 in Shanghai, offering two days of educational and networking opportunities for all professionals involved in supply chain management.

Over 300 participants are expected at this year’s event.

Created four years ago, the awards recognize the importance of supply chain, procurement and logistics excellence, by identifying and rewarding outstanding performance among leading manufacturers, retailers, service providers and key individuals working in China.

Following is a list of the awards categories and the 2008 nominees:

Visitor breakdown at Chaina

TOP AWARD - Supply Chain Operational Excellence in China:
Best 3PL Supply Chain Provider in China:
Best IT Supply Chain Solution for China:
Best Supply Chain Consulting Partner in China:
China’s Supply Chain Executive of the Year:
The Green Supply Chain Award in China:
Training Education & Development Award for China:

Final judging for each award category will occur in the next two weeks with the winners being announced during the gala dinner at the Marriott Hongqiao in Shanghai on November 6, 2008.

As a neutral and independent organization, the Council ensures that nominations are made in a totally commercial-free and objective environment. The winners are selected by an independent panel of judges comprising of China’s leading supply chain industry experts.
Source: PR Log

Work starts on UPS Shenzhen

A nearly 1 million-square-foot facility in Shenzhen will replace an air hub in Papanga, Philippines, and become UPS’ primary transit hub in Asia.

The UPS Shenzhen Intra-Asia hub will be built on 958,000 square feet of land and will include a dedicated 1.6 million-square-foot ramp provided by Shenzhen Airport, an express customs handling unit, sorting facilities and cargo handling areas.

Package sorting capacity is projected to reach 18,000 pieces an hour with the flexibility to expand to 36,000 pieces an hour.

The hub initially will employ 400 people and will operate 24 hours a day, seven days a week.
Atlanta-based UPS also plans to open an air hub in Shanghai by the end of the year. That hub will allow UPS to cut costs and improve service within China.
Source: Atlanta Business Chronicle

Shanghai International Expo

Famous global brands for logistics technology and equipment will get front row seats to see how China has developed the industry at the CeMAT ASIA 2008 exhibition at the end of the month in Shanghai.

The four-day exhibition allows Chinese logistics equipment and manufacturers one of the biggest opportunities to showcase their new technology and products while scouting areas for potential business cooperation among foreign counterparts.

Some 380 exhibitors from 25 countries and regions are expected to attend the event at Shanghai New International Expo Centre.

As the leading event in the logistics field, CeMAT ASIA will showcase the industry’s latest products and technologies.

Though the logistics industry as a concept was almost unknown to the Chinese 30 years ago, it is an area of business that China has been developing on an impressive scale.

Statistics from China Federation of Logistics and Purchasing (CFLP) show the nation’s output value for logistics equipment increased almost seven times, reaching RMB200 billion($29.28 billion) last year, up from RMB30 billion in 2002.

With an annual growth rate of 30 percent, China’s logistics equipment sector is now able to cater to a wide range of logistics services, from transportation equipment including cranes and forklifts, to port and airport facilities.
More HERE.
Source: China Daily

China’s port and shipping industry has been at its lowest ebb this year in terms of performance, and the situation may worsen in 2009.

This is the consensus of the 140-plus representatives representing 94 container wharves nationwide, attending the China Port, Container Wharf Summit Forum.

Shanghai port not as busy as it can be

The transport capacity of shipping companies has far exceeded the market demand in China at present.

The freight charge for routes to Asia and America has dropped from US$1,000 per TEU early this year to $300 to $400 at present.

Many shipping companies have annexed sea routes and sealed orders to new ships. Handling capacity of ports is also oversupplied.

It is expected that the container handling capacity of Shanghai International Port (Group) (SIPG) will reach 28.5 million TEUs this year, falling short of the capacity target set earlier this year.
Source: CargoNews Asia

Shipping in Yantai

Grand China Logistics Holdings, a subsidiary of Hainan Airlines Group, will buy five container vessels from Shandong Province Yantai International Marine Shipping Company (SYMS). This move, according to Jia Hongxiang, president of the former, is instead of an overall acquisition.

Grand China Logistics, together with other logistics units of Hainan Airlines, provides one-stop logistics services on the land, both at the sea and in the air. The service networks and employees of the ships will be absorbed into newly founded Grand China Shipping (Yantai).

Grand China Logistics has issued a ship purchase announcement, but disclosed no purchasing price. The ships, to be renamed, will be for short sea services such as the routes between China and Japan.

For more on this click HERE.
Source: Trading Markets

Yangshan New Port

Sinocast has reported the third phase of Yangshan Port, a deep-water harbor in Shanghai, will begin operations on December 10.

Under the third phase, the last project of the port there will be three 100,000 to 150,000-tonnage berths equipped with 13 cranes.

They will be 15m deep and have a 1,250m long coastline.
Source: Cargo News Asia

Workers testing in a pharmaceutical factory

Ying Marainen, Asia Pacific director of CTSCS Business Development, said China faces challenges in the management and transportation of clinical trial materials.

The pharmaceutical industry in China has maintained sustained growth with the government prioritizing the biotech and pharmaceutical sectors.

The increasing global costs of R&D (research and development, coupled with decreased productivity, has led multinationals to outsource their clinical trials to developing countries.

Supply chain medicinal services are still not up to speed with growing numbers of third-party service providers, low-tech facilities and high costs.

Drug storage conditions vary greatly across the board. And there is still limited understanding in China of international GMP (good manufacturing practice) standards.

Statistics show that the rate of cost in distribution of pharmaceutical products in China is around 12% while the profit rate is about 1%. In more advanced economies, the cost rate is around 3% and profit rate 1.5%.
For more on this click HERE.
Source: CargoNews Asia

Yangtze River, clean, clear and uncommercialized.

The world’s busiest river is destined to become a ‘golden waterway’ for cargo transport thanks to deeper channels, less risky waterways, night sailing and build-up of cargo facilities along the coast line.

The cargo volume along the river exceeded 1.1 billion tonnes last year. Zhu Jianhua, deputy head of the Shanghai Port Authority said the cargo volume is expected to hit 1.3 billion tonnes by 2010.

Hu Jianhua said, ‘Deepening the lower reach, smoothening the middle reach and extending the upper reach has been the principle aim of the plan to develop Yangtze navigation.’

According to a five-year plan drafted by the Yangtze Estuary Waterway Bureau, the goal is to have a 12.5m draught at the estuary by the end of the third phase in 2012. The initial plan is to extend the 12.5m water depth to Taicang port in Jiangsu province, to enable large ocean liners to anchor during high tide.
For more on this click HERE.
Source: CargoNews Asia