DELEGATES to recent logistics conference held by China Federation of Logistics and Purchasing (CFLP) pointed out that China is investing more on logistics infrastructure despite weak demand and gloomy market forecasts, Xinhua reports.

According to the statistics from the CFLP, China's social logistics value, that is, the total value of all logistics operations, increased 9.8 per cent to CNY98.3 trillion (US$15.48 trillion). While investment in the logistics industry fixed assets increased 15.2 per cent to CNY1.9 trillion.

CFLP chairman He Liming said that although logistics demand for industrial products and trade cargo have shrunk, demand for e-commerce, online shopping and express delivery have increased 17.4 per cent. This, he said, indicated that China's economy continues to grow albeit at a slower pace, and that great potential lies with e-commerce.

In view of this, many logistics operators continue to invest more in upgrading their facilities and services and are seeking acquisitions or mergers both domestically and internationally.

Mr He said that by 2015 the number of the logistics operators of category A, which are the largest operators in China, will grow from 1,766 to 5,000.

source:www.schednet.com