China to set up pilot cities for modern logistics

Source: PTI

China which has 688 million internet users will set up several pilot cities to develop modern logistics as part of urban reforms to boost the fast developing e-commerce. Against the backdrop of “Internet Plus” national plan, urban cities should play a key role in developing modern logistics, which could help support industrial upgrading, according to the National Development and Reform Commission (NDRC), which did not elaborate on details. The “Internet Plus” action plan was unveiled by the State Council in July to mould information technology and traditional sectors into a cohesive, efficient force, and help cultivate new engines for economic growth and upgrade economic structure. The plan identified areas that can benefit from Internet Plus, including logistics, services and e-commerce. By the end of June 2015, China had 668 million internet users, 48.8% of the population. Total e-commerce transaction volume in 2014 surged 59.4% to 16.39 trillion yuan ($2.57 trillion), nearing its goal of 18 trillion yuan by 2015. Pilot cities could help increase the serving abilities of modern logistics industry, enhance resources optimisation, and break barriers for the development of logistics, an official with the NDRC was quoted as saying by state-run Xinhua news agency. China aims to build a modern logistics service system by 2020, with annual growth of value added output of around 8%, accounting for around 7.5% of the country's GDP, according to a statement by the NDRC earlier in August. Data from China Federation of Logistics and Purchasing showed goods worth 104.7 trillion yuan ($16.5 trillion) were transported in the first half of the year. Between January and June, the gross revenue of the logistics industry hit 3.6 trillion yuan, up 5.4 % over the same period last year.