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Facing the turbulence of global economy, a reliable and resilient logistics supply chain is more crucial than ever and logistics industrial clusters are considered as an effective solution in the supply chain management.

On May 6, 2023, the Guangzhou Baiyun International Logistics Industry Summit was held at Baiyun district, a prominent logistics hub in the southern Chinese metropolis of Guangzhou. Government officials, representatives of enterprises, experts in logistics at home and abroad attended the event.

Wang Xiaojie, deputy head of Guangzhou Baiyun district delivers an opening speech at Guangzhou Baiyun International Logistics Industry Summit, May 6, 2023. (Photo/CGTN)

"In 2022, revenue of air transport and modern logistics industry in Baiyun district hit 121.7 billion yuan (approximately US$ 17.36 billion). Baiyun district is implementing a plan of '1+5+N+X' to support the transformation into a world-class logistics cluster," Wang Xiaojie, deputy head of Guangzhou's Baiyun District government, said as she described the region's vision and strategy at the opening ceremony.

Li Shuoming, CPC party secretary and director of the Bureau of Housing and Urban-Rural Development of Guangzhou Baiyun District, in an interview with CGTN, May 6, 2023. (Photo/CGTN)

"The '1+5+N+X' development plan of the logistics sector means that one logistics headquarters plus five logistics bases, with numerous logistic platforms and city delivery posts in the network," according to Li Shuoming, CPC party secretary and director of the Bureau of Housing and Urban-Rural Development of Guangzhou Baiyun District. He explained that the four major international transportation hubs of Guangzhou Baiyun International Airport, Guangzhou International Port, Guangzhou Baiyun Railway Station and Guangzhou Railway Station are very important in boosting the logistics industry.

Guangzhou Baiyun Railway Station, one of the key transportation projects in the Guangdong-Hong Kong-Macao Greater Bay Area, is expected to open this year. Guangzhou International Port now serves as an important hub of China-Europe freight, which facilitates logistics between China's Greater Bay Area, Central Asia, Eurasian countries and Europe at large.

China-Europe freight operates at Guangzhou International Port in Baiyun district, Guangzhou, May 6, 2023. (Photo/CGTN)

Guangzhou Baiyun International Airport is now undergoing phase III expansion, which is estimated to increase its total cargo terminal area to more than 1 million square meters with a terminal cargo handling capacity of 6 million tonnes in 2025.

China now has the world's largest logistics sector, leading all countries in terms of cargo transport volume and number of shipments. The total revenue of the sector reached 12 trillion yuan (US$ 1.74 trillion) in 2021, according to the National Development and Reform Commission.

In 2022, Guangdong province's GDP was estimated at 12.8 trillion yuan (US$ 1.9 trillion), said Wang Weizhong, the province's governor at the annual session of the Guangdong Provincial People's Congress in January this year. The capital city Guangzhou has built an international shipping center, logistics center, trade center, and modern financial service system in recent years.

Guangzhou Baiyun Airhub Bonded Area (South Section) (Photo/CCTV)

According to Guangzhou's 14th Five-Year Plan (2021-2025), the metropolis would establish five super-large logistics hubs and 10 large logistics hubs, to further consolidate its ranking as one of the world's leading international logistics centers.

Liu Zhiyuan, chairman of Guangzhou Baiyun District Logistics Chamber of Commerce at a press conference during the Guangzhou Baiyun International Logistics Industry Summit, May 6, 2023. (Photo/CGTN)

Baiyun district has two advantages to develop into a world-class logistics cluster. Liu Zhiyuan, chairman of Guangzhou Baiyun District Logistics Chamber of Commerce, who has witnessed the tremendous changes of the logistics industry over the past 20 years, said that Baiyun has an advanced interconnected transportation infrastructure system for the logistics industry and a huge demand for logistics since Baiyun is one of the main hubs of e-commerce.

"It would be very difficult for the e-commerce to rise without a well-developed logistics infrastructure as a foundation," Liu said. He explained that the fast development of the logistics sector in just a few years has made on-time delivery of e-commerce across China possible. Back in 2010, the delivery cost of products sold online was high and delivery time was uncertain, taking anywhere between five to 10 days.