The Dream Factory of China

By now more than 5,000 logistics companies are operating in Qianhai. Domestic and international logistics giants including DHL and S.F. Express have located their head offices in the area. Qianhai thus emerges as a hub of leading logistics companies.

A forum of modern logistics and supply-side reform was held in Qianhai on July 16. As a part of Shenzhen-Hong Kong cooperation on modern service industry, the event invited government officials, logistic associations and companies from the two regions.

By the end of 2015, added value of Shenzhen’s logistics industry reached 178.3 billion yuan, accounting for 10.2 percent of the city’s GDP. While Hong Kong is among the world's busiest ports, it faced a drop to fifth in container throughout last year and the first half of 2016 did not see a reverse, which urges both regions to seek further cooperation.

In response to the changing global market, the regional partnership will benefit both Shenzhen and Hong Kong in expanding logistic business and improving logistic service, Li Xinwei, the deputy secretary general of Shenzhen Municipal Party Committee, said at the forum.

“The key to logistics development is not port capacity but service,” a Hong Kong expert said.

Besides, active participation in global labor division is the next focus of the regional partnership, said Wang Ming, the head of Institute of Comprehensive Transportation of National Development and Reform Commission. He highlighted Shenzhen’s role in organizing international trade to stimulate domestic demand, and making innovation in corporation structures.

Wang added, Qianhai should encourage innovation in developing regionally specific service and industrial integration with Hong Kong.

Logistics is one of the four pillar industries in Qianhai, according to vice director general of the Qianhai Authority He Zijun. “Qianhai is devoted to allocating Shenzhen-Hong Kong logistic resources as well as improving interconnected transportation systems so as to develop a complete supply chain.”
In the forum, several companies shared their experiences in regional collaboration. For instance, Hu Yabing, the vice president of Hong Kong Li & Fung Group, said it takes only three hours to transport imported goods from Hong Kong Airport to Qianhai’s warehouse, and at most 48 hours to deliver to other Mainland cities. Their warehouses are also situated in Shekou and Yantian Port.

“We are developing an e-commerce center for Asia-Pacific region in Qianhai”. Hu saw huge development potential for China’s manufacturing sectors if the country transforms from exporting goods to e-commerce trade.