Life of Guangzhou - Logistics Centers to be Moved Out of GZ Downtown

All the logistics centers in downtown of Guangzhou will be moved to the development zone by 2009 before the Asian Games, according to Guangzhou Daily.

The moving project involves the key logistics centers like Huang Jinwei, Baiyun Highroad, Guangzhou Aviation Center and Nansha.

Yangcheng Logistics Center closed last January, which marked the completion of the first stage of the moving. Now into the second phase the logistics centers around Shatai Road and Zengcha Road in Northern Guangzhou are being moved.

It is estimated some 2,000 logistics companies in over 10 logistics centers in Zengcha Road will be moved, setting a new record.

An official of Guangzhou Communications Commission said there are at least 6,000 logistics companies in Guangzhou. The big number of companies brings about severe competitions and small profit margin for the whole industry.
　
At present, many foreign logistics tycoons also enter to tap the big market of Guangzhou. However, some experienced local operators believe foreigners will not pose much challenges for the time being as locals can offer much lower price than foreign competitors.

It is expected logistics industry of Guangzhou and logistics converging of South China will grow year by year. It will help push the logistics centers here to further develop and improve.

Many companies continue their business instead of closing up in a logistic center in Guangzhou, ignoring the moving order from local government.

July 31st, 2007 is the deadline for the nine logistics centers in Shahe Chong in Guangzhou to close and move out. Many companies, however, are found going on with their business instead of closing up.

(By Helena Zhang)