The Present Situation and Existing Problems of Construction and

The Present Situation and Existing Problems of Construction and
Management of Logistics Base in China
TANG Xiuli
School of Logistics, Beijing Wuzi University, Beijing, P.R.China, 101149
[email protected]
Abstract The planning and construction of logistics base have become another constructive high tide
of logistics development in China. To scientifically carry out the planning construction in logistics base
in China, this article summarizes the characteristics of the construction and management of Chinese
logistics base, analyzes on the primary problems existing in it through a combination of present situation
of the development of logistics base with detailed analysis of the evidence. And it puts forward the
corresponding proposal to promote planning and construction of Chinese logistic base setting foot on the
right paths.
Keyword Logistics Base, construction, management
1 Introduction
Logistics base is an inevitable outcome at a certain stage of logistics development. Every
economically advanced country has its own characteristics in development background, the history, the
scale, the construction pattern of logistics base. Among these countries, logistics base in Japan and
German are the most representative.
Construction of logistics base in Japan has a longer history and accumulates rich experience in the
processing of construction. The Japanese government organized the Department concerned to make
national investigation of the logistical industry in the 1960s, until now has already completed more than
20 physical distribution base (called Distribution Park by Japan). For attracting logistics enterprises, a
variety of measures had been taken by government to sell the planned land of logistics base to each
logistic association, then the Associations financing from its member enterprise by forms of joint stock
system, to purchase the land and construct logistic facilities and governments may provide the
low-interest loan for the insufficient. In this way, enterprises, associations and the government have
formed a Community of interests. The enterprises are the stockholders of the logistics base, and of cause
they are also clients of the logistics base. Owing to relatively centralized physical distribution resources,
enterprises within the base can bring the complementarity of resources into full play. As is known in
Japan, specific measures of base construction are often playing the decisive role[1].
Germany government differs from Japanese in dealing with planning and constructing logistics base
whose experiences are highly valued at home in recent years. The construction of Germany logistics
base adopts a developmental pattern known as” The Federal government overall plan, the State authority
support the construction, the enterprises self-administered operation”. The plan of logistics base gives a
comprehensive consideration of transportation, environmental protection and benefits for logistic
enterprise, etc. In order to use a unified plan to guide states building logistics base, Competent
Authorities of Transport and Communications of German shall provide financial aid to the logistics base
which follow the construction program and do not provide for those do not follow. State government
offers land needed and traffic facilities like roads, railways, communications and so on then leases out
logistics base to logistic enterprises, puts self-administered operation into practice.
Chinese logistics base rose in 2001 and construction upsurged in 2003 that continues to this day.
According to an incomplete statistic, currently the nation has more than 20 provinces and more than 30
central-city governments have drawn up the regional physical distribution development project and
policy. Although governments attach great importance to the planning work of Chinese logistics base
and logistics base constructions have acquired much achievement, prudential study and cautious thought
should be taken to logistics base’ plan and construction for a lot of problem in unleashing actual effects
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demanding prompt solution.
2 The Concept of Logistics Base
Logistics base is called Distribution Park in Japan and Freight Village in German. Although names are
not the same and definition differs in various countries, construction targets and service functions are
almost the same. In America, the concept of logistics base are not adopted yet, however, complete range
of distribution centers are built whose functions and roles are equal to “logistics base”.
Logistics base in Chinese National Standards <logistics terminology> GB/T18354-2001 is also
called logistics base refers to all sorts of physical distribution facilities and different types of physical
distribution enterprise concentrating in the layout of the places which is a specific area with certain scale
and integrate service functions.
Planning construction of logistics base not only pave the way to make their own scale and agglomerate
economies for logistics enterprise, instruct land effective control and rational utilization for logistics, but
also closely interrelated to adjusting urban land structure, reducing traffic jams and environmental stress.
（
）
3 The Present Situation and Characteristics of Chinese Logistics Base
Construction
3.1 Fast develop, high quantity of planning construction and conformity with economic
development
There are more than one hundred logistics base in the processing of planning construction in China at
present. The construction regional distribution of physical distribution base is in Chang Jiang Delta, the
Pearl River Delta and Bohai Bay Rim area of coasting area in the East of China, that is logistics base are
much more in East and less in West, more in coasting area and less in inland, more in traffic terminal
areas and less in areas whose traffic lags behind. Economic region with developed economy and
conveniently situation, the physical distribution base's development is quite rapid and has a large
quantity of logistics base construction and a staggering percentage of operated base. Nevertheless in less
developing area, the developing pace is relatively slow but is starting to add up (presented in table 1)[2].
Table 1 Area Distribution of Logistics Base
Economic region
Economic region of
east coasts(Shanghai,
Jiangsu and Zhejiang
province)
Economic region of
South coasts (Fujian,
Guangdong and hainan
province)
Economic region of
north coasts (Beijing,
Tianjing, Hebei and
Shandong province)
The number of
logistics base
(including
plan,
process
and
operation)
Percentage share of base
(the number of investigation
is 205,
including plan,
process and operation of
logistics base )
The number
of
operated
logistics base
Percentage share
of
operated
base(the number
of investigation
is 50 )
52
26
11
22
36
18
8
16
28
13
10
10
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Economic region of
North East (Liaoning,
Jilin and Heilongjiang
province)
Economic region of
the middle reaches of
the
Yellow River
(Shaanxi,
Shanxi,
Henna
and
Inner
Mongolia province)
Economic region of
southwest(Yunnan,
Guizhou,
Chongqin
and Guangxi)
Economic region of
middle reaches of the
YangtzeRiver(Hubei,H
unan, Jiangxi and
Anhui province)
Economic region of
northwest(Gansu,
Qinghai,
Ningxia,
Xizang and Xinjiang
province)
21
10
4
8
21
10
6
12
17
9
3
6
17
8
7
14
13
6
1
2
3.2 The logistics base present various kinds of types with the backing of different construction
development conditions and the main functions
Table 2 Types of Logistics Base in the Processing of Planning Construction in China
Types of logistics
Prerequisite
Main factors
Representative base
base
distributing and delivering Shenzhen saline port logistics base,
Port logistics base port
to
the
home
and Guangzhou Huangpu logistics base, Nansha
international markets
logistics base
Beijing Tianzhu logistics base, shanghai
Airport logistics
airport
aviation giggit logistics
Pudong airport logistics base, Tianjin airport
base
logistics base
Roadrail through roadrail
Beijing Liangxiang logistics base, Tianjin
intermodal
transport
transport logistics transportation
Nanjiang bulk cargo logistics base,
distributing and delivering
base
junction
Zhengzhou Baizhou logistics base
economic
development
industrial base and
Industry logistics
supply logistics service for logistics base of Tianjin Development Zone,
high
and
new
base
production
Suzhou New Industry Zone logistics base
technology
industrial
development zone
Import and export product Tianjin bonded area international logistics
Logistics base in
bonded area
bonded
processing base, Qingdao bonded logistics base, Dalian
bond
physical distribution
bonded logistics base
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City dispatching
logistics base
intrinsic
storage
base near city
city physical distribution
Shenzhen sungang-qingshui river logistics
base, Wuhan Duoluokou dispatching logistics
base, Dalian Laogang logistics base
The constraints of construction development of logistics base are logistics demands, natural
geographical environment, communication infrastructure, urbanization level and endowment of
resources. For this reason, each region depends on its own superiority condition in the physical
distribution base to determine the logistics base suit one develop, has formed varied physical
distribution base types(presented in table 2)[3,4].
3.3 The mode of logistics base development and construction is diversified in different regions
In practice of logistics planning and construction, the Mode of logistics base development and
construction is diversified in different regions based on different function, nature, condition, financial
situation of government and the leading enterprise, such as some are mainly invested by government
(Shenzhen Pinghu logistics base), some are led by large enterprises (Dalian International logistics base)
and also some are jointly developed by local enterprises and overseas strategic investment partners
(Suzhou Zhongxing Industrial Part logistics base).
3.4 Logistics are constructed and operated under certain policy supports
As the integrated economy based public welfare infrastructure, logistics base is natured in large-scale
investment, long construction period and slow recovery, and it also can drive and support the
development of the economy and society to be served. Therefore, all local governments have their own
preferential policies, such as in financial support, loan, tax, industrial and commercial administration,
custom supervision and traffic control etc. to support the planning, development and operating of
logistics base[5].
4 The Existing Problems in the Development of Chinese Logistics Base
Seen from the development of logistics base in China in recent years, though some performances have
been obtained, yet, after all, it is still at an elementary stage, there exist some problems that are
unfavorable to the healthy development of logistics base which can be shown in the following four
aspects:
4.1 Government policy is not well established
At present, some of the logistics base in China have been supported by the Government but the
Government hasn’t established specific policy on logistics base. For instance, no any policy on logistics
land usage has been set up. Now the category of logistics land usage has not been accurately defined,
which is involving in various land usage such as storage, transportation, construction, so that some
unfavorable factors in the development of logistics base in China have occurred in the planning and
development of logistics base such as multilayer department leadership and land price pushing,
meanwhile, examining and approving formalities for logistics land are complicated, which has increased
the cost for logistics base to resident in the enterprises.
Though some steps on logistics base have been established in the process of developing logistic base
by localities, however, these steps are not perfect enough or matching well. Besides, the favorable
policies differ from location to location. Some logistics base can enjoy regional preferential policy, for
example, Nanjing Municipal Government has prescribed that whichever logistics enterprise to register
and operate in the three major logistics base of Longtan, Lukou and Wangjiawan can be exempted from
all the related expenses within the scope of authority of Nanjing Municipal Government while some
others can’t. These skimble-scamble policies have caused unequal competition between logistics base as
well as between the logistics base and other enterprises, which has severely blocked the healthy
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development of logistics base.
4.2 Lack of scientific demand analysis in the planning and construction of logistics base
The construction of logistics base involves in various sectors and has higher requirements on
construction of infrastructure projects. Therefore, not all the locations are suitable for the construction of
logistics base. Whether to build or not, the key factor lies in the requirement of the market, whether it
can satisfy the demands of the enterprises or not. The current logistics base planning and construction in
China is mainly determined by local governments, which lacks of scientific demand analysis. Now,
some cities and regions in China have fallen into the rank for the construction of logistics base in
succession without connecting local reality with existing conditions to make rational plans for logistics
base, which not only leads to severe waste of resource, but also bring about inactive operations of
logistics base due to the disjointedness of location, supply and demand channels and service price from
the market demands. The actuality of the logistics base within the economic circle in Yangtze Delta has
reflected this problem, now. The implementary logistics projects have been listed in table 3 based on the
logistics development strategy and planning of some cities within economic circle in Yangtze Delta.
Table 3 List of the Planning and Construction of the Logistics development Strategy and Base in some of the
Cities within Economic Circle in Yangtze Delta
City
Goals of logistics development
Projects implemented or to be implemented
Shanghai
The most active international logistics node in the
Asia-Pacific region
Nanjing
To form an international logistics distributed node
in line with Shanghai gateway port.
Zhenjiang
To form regional logistics center, actively radiating to
the north of the Yangtze River
Taizhou
Complying with the tendency of modern logistics
development, to provide favorable space for the
development of logistics enterprises in Taizhou, to
relieve the pressure to Taizhou City.
Construction of logistics center in Yangtze Delta to
respond to Shanghai international logistics center and
the convenient hub and node in the supply chain of
national modern logistics development.
Jiangsu-Zhejiang Logistics Exchange Hub, Assistant
Logistics Hub to Shanghai International Navigation
Center.
As the strengthened gateway hub in North Jiangsu, to
reinforce the logistics radiation to North Jiangsu and
actively to connect with the logistics industry in
South Jiangsu.
Center on international logistics, try to construct
Ningbo into the central city for comprehensive
logistics in Zhejiang, and the national logistics center
hub in Yangtze Delta.
Wuxi
Suzhou
Yangzhou
Ningbo
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The key projects of Waigaoqiao, Pudong Airport and
Northwest logistics base as well as Wusong
International logistics base in “Tenth-Five” Period,
and Yangshan Deepwater Port logistics base in the
future planning.
Plan and construct Longtan, Lukou, Dingjiazhuang,
North River, Pukou, South City and Wangjiawan
Logistics base in the near future.
Plan and construct Zhenjiang Port Area Logistics
Park and Zhenjiang Development Zone Logistics
Park
Plan to construct the comprehensive logistics base in
Taizhou Port, Shigang Town logistics base in
“Tenth-Five” Period.
Plan to construct North Wuxi Comprehensive
Logistics Base, Jiangyin Port Professional Logistics
Base and Wuxi Custom Logistics Center in the near
future.
to plan 8 major comprehensive logistics base of
which 6 will be newly constructed and enlarged in
“Tenth-Five” Period.
Plan to construct Yangzhou Port Logistics Base,
Yizheng Petrochemical Logistics Base and Gaoyou
Distributed Logistics Base for Agricultural
Byproducts in “Tenth-Five” Period.
Plan to construct Beicang Major Logistics Base,
Mingzhou Logistics Base and Zhenhai Logistics
Base in “Tenth-Five” Period.
Table 3 shows that almost every city in Yangtze Delta has established its own logistics development
planning and several logistics base. According to statistics, the planned or the logistics base planning to
develop in Yangtze Delta are more than 60. What’s more, local logistics base planning and construction
emphasize particularly on the logistics limited in its own region and ignore the characters of
interregional logistics and network operation. Taking Nanjing as an example, Nanjing has made out the
planning of constructing Wangjiawan, Dingjiazhuang logistics base based on railway and high way,
Lukou based on airport, Longtan based on the Yangtze River and North River based on chemistry
industry. Just in a city, the planning of the logistics based has been so scattered.
4.3 Lack of overall planning and coordination
The lack of overall planning for the large economic regions throughout China in the course of
self-planning for the local logistics base conducted by local governments at their discretion results in a
dense inhabitation of too many logistics base within one economic area. For an instance, due to lack of
scientific planning, the layout of the logistics base in the Yangtze River delta area metropolis circle does
not stand on a correct orientation, and fails to coordinate with the surrounding areas appropriately, which
not only gives rise to redundant construction, but also results in vicious competitions among the logistics
base. Logistics base makes reduction of cost based on industrial agglomeration effect and scale benefits.
However, dense inhabitation of logistics base will give rise to excessive distribution, which goes against
the aim of construction of the logistics base, and make it impossible for the logistics enterprises within
the logistics base to reduce the cost.
In addition, there exists disorder in the management system of the logistics base in China due to
long-term effect of planned economy. Besides, each sections related to the logistics base is under
respective control of different government departments such as Ministry of communications and
transportation, Ministry of railways, Ministry of commerce, etc. The organization methods, service
criterion, and technical equipment of these departments vary from one to one. Due to inadequate overall
planning and coordination, the inter-linkage of the logistics base proper have been severed by man-made
conduct.
This type of intersected management system neither apply to nor to meet the demand for development
of logistics base and restrained the development of the logistics base to the greatest extent. The disorders
are: the planning of infrastructures, the layout of construction and the overall economic growth, as well
as the productivity fail to coordinate with each other properly, which gives rise to repeating construction
and excessive competition; the package service of the logistics base is not appropriate, which results in
low resource utilization ratio; local protectionism on the trades, and different departments give rise to a
closed and unfair competition situation, which makes it difficult to build up a sound logistics system and
a multi-regional, multi-industrial logistics network.
4.4 Lack of appropriate measures
We started to build up logistics base in China just for a short time and we are lacking in the
knowledge of logistics base, therefore, we are lacking in appropriate measures to meet the requirement
of logistics base. For an instance, we do not attach importance to the planning and construction of
information system, and we only made a superficial plan for the information system of logistics base,
which is not practical at all. Because of that we have not formed an effective information system,
therefore, each section of the supply chain fails to share the information and resource, which is a weak
point that restrict logistics base from development. Besides, the inappropriate service system in energy,
transportation and telecommunication, and the lives hinders the development of logistics base in China.
5 Conclusion
The logistics base need complete demonstration and approval in duration of its construction. We must
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make a uniform plan for the construction of logistics base according to the research conducted on the
present infrastructure, transportation conditions, and demand of the enterprises. Therefore, we need to
pay attention to the points as below:
(1) Diversified management and operation, and appropriate facilities. The logistics base needs
long-term construction and its investment return cycle takes long time, therefore, it is suggested to adopt
diversified management and operation in its initial construction stage to take back the costs for
investment. Meanwhile, it is suggested to equip the enterprises that stationed-in with appropriate
facilities and good environment.
(2) To meet the actual demand and coordinate with the governmental program in the planning for
logistics base. The initial planning for the logistics base should meet the demand for growth and be
harmonious with the local economic growth. Besides, it should apply to the demand of markets by
attaching most importance to the integration of information and make it possible for the enterprises to
station-in and to form a logistics market.
(3) To attach importance to the relation between regional center and local center in the formulation of
network layout. We should make plan on the network and system. Logistics is a large-scale system and
we should make a systematic plan for the construction of the logistics base based on the relations
between the demands on logistics in the local area and surrounding areas, otherwise, we could not build
up a sound logistics system, and it will exert adverse effect on the local economy.
(4) Adopt specific measures in the formulation of policy and work out how to provide the logistics
enterprises with a good environment for management and operation. In the present implementation of
the policy over the logistics base in China, the policy and environment for the station-in of the logistics
enterprises does not match each other, and the operation environment for the logistics enterprises
requires support and guarantee without delay. It will hinder the proper development of the logistics
enterprises if such problems cannot be solved in an appropriate manner[6].
In a word, the planning for logistics base is a complex set of system, which involves many respects,
such as the selection of location, the governmental function in the construction of logistics base, the
function orientation, the usage of land area, and the transportation system, the operation methods, the
mode of investment and financing, the construction of information platform and the policy for the
development of logistics base, etc. It is of great significance to accelerate the development of the
construction of the logistics base in China and logistics industry by conducting an in-depth and
systematic study on the planning and construction of the logistics base and to formulate a theoretical
system for the construction of logistics base.
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