Private, foreign capital encouraged in logistics hubs

"The market should play a bigger role in the construction of logistics hubs, which is a complicated process that cannot be planned," Premier Li said at the State Council executive meeting on Nov 21.

At the meeting, decisions were made to encourage private and foreign capital to get involved in the building and operation of logistics hubs, in bid to raise the quality and efficiency of the economy.

In recent years, logistics centers and markets formed in some regions played an active role in raising logistics efficiency and promoting development.

Premier Li said in the construction of logistics hubs, the government should strengthen input in railways and roads with comprehensive space management, and the market should be allowed to play its role without rigid planning.

The meeting also laid out measures to optimize facilities in logistics parks and freight stations to enhance collective usage and information sharing.

Meanwhile, software and hardware weak links for logistics in central and western regions were addressed with support given to logistics hub operators to seek financing by offering stocks and bonds.

Premier Li said a clear target should be set in building logistics hubs to ensure a substantial decline in the ratio between logistics costs of the whole society and GDP.

"We should lower logistics costs to stimulate market vitality and improve national competitiveness," he said.

Premier Li stressed that work should be done to speed up administrative reform in the logistics sector, and address problems such as irregular charges and road checkpoints that lead to increases in logistics costs.

According to the meeting, key logistics hubs will be built based on cities with good location and industries. At the same time, multimodel transportation and new logistics models will be developed, such as supply chain logistics, express delivery and e-commerce.