Documentation Brochure - Hamburg Summit
Documentation Brochure - Hamburg Summit Documentation Brochure - Hamburg Summit
Getting there: Logistical Challenges Wong Wai Shing, Kerry EAS Logistics Limited, deliveres his impetus speech Wong Wai Shing praised the chances of the logistics industry in China. “The market is there and it is extremely rosy,” he said, “but unfortunately roses have thorns.” In other words, the industry still faces great tasks. Wong is Joint Managing director of Hong Kong-based logistics company Kerry EAS and Vice President of the China International Freight Forwarders Association. In his keynote speech at the Hamburg Summit Wong said that in 2005 the Chinese logistics market had done 470 Billion US$ of business and that business was increasing by 25 % per year. “The potential is enormous,” he said. The other panellists were also positive about the prospects. “Logistics in China is growing more and more important,” said HSH Nordbank director Peter Rieck. His bank is the world’s largest ship’s financer and also does business in the aviation and railways sectors. Both Wong and Rieck also stressed the difficulties of commitment in China, however. “China is so big, so large. No company can cover the whole country,” Wong said. This would require far too much of an investment, so cooperation was a must. What is more, the market was too fragmented. “At the moment 500,000 local companies offer different kinds of logistics services,” Wong said. Rieck agreed that efficiency suffered as a consequence. “In Europe logistics accounts for about 7 % of the cost of typical retail goods,” he said. “In China it is more than 15 %.” Another important issue was the inadequate liberalisation of the market. “In China we have offices at 130 locations and need a total of 900 licenses to operate them,” Wong complained. While inland transport suffers from poor roads, overburdened Chinese railways and poor-quality warehousing, China’s seaports are well developed. A man who benefits from the boom in container shipping is Guan Tongxian, president of Shanghai-based Zhenhua Port Machinery. He stated that he was expecting container traffic to continue to increase in China. “The quality of products made in China is excellent, and labour costs are much lower than in, say, Europe.” Hapag-Lloyd CEO Michael Behrendt was very satisfied with conditions in China. “We have no logistical problems whatever there,” he said. Since acquiring CP Ships last year the Hamburgbased company has been one of the world’s leading container shipping lines. “China is the world’s most important market, not just for us but for all of container shipping,” he told the Summit attendees.
- Page 1 and 2: DOCUMENTATION 2006 THE HAMBURG SUMM
- Page 4: Welcome Address by President Karl-J
- Page 8: Let us like to be Neighbours Hambur
- Page 12: Still more Work to do
- Page 16: EU-China Trade Relations Lutz Bethg
- Page 20: Banking and Finance in China Heinz
- Page 26: Asia in 2015 - Scenarios Richard Ha
- Page 30: Competing Powers in Asia The Austra
- Page 34: China's Future Role in Asia Two cou
- Page 38: Supporting Programme At the end of
- Page 42: Outlook by Conference Chairman Niko
- Page 46: Summit Speakers Art of Illumination
Getting there: Logistical Challenges<br />
Wong Wai Shing, Kerry EAS Logistics Limited, deliveres his impetus speech<br />
Wong Wai Shing praised the chances<br />
of the logistics industry in<br />
China. “The market is there and it is<br />
extremely rosy,” he said, “but unfortunately<br />
roses have thorns.” In other<br />
words, the industry still faces great tasks.<br />
Wong is Joint Managing director of Hong<br />
Kong-based logistics company Kerry EAS<br />
and Vice President of the China International<br />
Freight Forwarders Association. In<br />
his keynote speech at the <strong>Hamburg</strong><br />
<strong>Summit</strong> Wong said that in 2005 the<br />
Chinese logistics market had done 470<br />
Billion US$ of business and that business<br />
was increasing by 25 % per year. “The<br />
potential is enormous,” he said.<br />
The other panellists were also positive<br />
about the prospects. “Logistics in China<br />
is growing more and more important,”<br />
said HSH Nordbank director Peter Rieck.<br />
His bank is the world’s largest ship’s<br />
financer and also does business in the<br />
aviation and railways sectors.<br />
Both Wong and Rieck also stressed<br />
the difficulties of commitment in China,<br />
however. “China is so big, so large. No<br />
company can cover the whole country,”<br />
Wong said. This would require far too<br />
much of an investment, so cooperation<br />
was a must. What is more, the market<br />
was too fragmented. “At the moment<br />
500,000 local companies offer different<br />
kinds of logistics services,” Wong said.<br />
Rieck agreed that efficiency suffered as<br />
a consequence. “In Europe logistics<br />
accounts for about 7 % of the cost of<br />
typical retail goods,” he said. “In China it<br />
is more than 15 %.”<br />
Another important issue was the<br />
inadequate liberalisation of the market.<br />
“In China we have offices at 130 locations<br />
and need a total of 900 licenses to<br />
operate them,” Wong complained.<br />
While inland transport suffers from<br />
poor roads, overburdened Chinese<br />
railways and poor-quality warehousing,<br />
China’s seaports are well developed. A<br />
man who benefits from the boom in<br />
container shipping is Guan Tongxian,<br />
president of Shanghai-based Zhenhua<br />
Port Machinery. He stated that he was<br />
expecting container traffic to continue<br />
to increase in China. “The quality of products<br />
made in China is excellent, and<br />
labour costs are much lower than in,<br />
say, Europe.”<br />
Hapag-Lloyd CEO Michael Behrendt<br />
was very satisfied with conditions in<br />
China. “We have no logistical problems<br />
whatever there,” he said. Since acquiring<br />
CP Ships last year the <strong>Hamburg</strong>based<br />
company has been one of the<br />
world’s leading container shipping lines.<br />
“China is the world’s most important<br />
market, not just for us but for all<br />
of container shipping,” he told the<br />
<strong>Summit</strong> attendees.