Home » City specials » Chengdu
Chendu transport hub connects the world
By Ding Yining |
March 12, 2013, Tuesday
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Print Edition
Print Edition
EDITOR'S note:
Chengdu, capital of China's southwestern Sichuan Province, is a city going places. In June it will host the prestigious Fortune Global Forum, acknowledgement of Chengdu's growing reputation as a major business center. Much of this success can be attributed to the city's dynamic "can-do" attitude, helping create an environment where industry can prosper and where leading multinationals are choosing to set up headquarters.
There is an old Chinese saying that the narrow paths to Sichuan are as difficult as climbing up to heaven.
Nowadays, most of the transport in and out of the mountainous province involves little climbing apart from trekking holidays. Business and pleasure travelers to one of China's most populous provinces come by plane, road and rail. The provincial capital Chengdu is the transport hub of southwestern China, particularly where air transport is concerned.
An estimated 31.5 million people were expected to have passed through the city's Shuangliu International Airport last year, an 8.4 percent increase from 2011.
Air connections this year are set to increase, with three more routes to Europe and two to the Middle East.
Currently, the airport offers 92 domestic destinations and 49 offshore routes.
In the next two years, the city will begin more direct cargo routes to cities in the United States and raise the frequency of existing ones.
"The aviation industry is closely related to the local exhibition, commerce and finance industries, and development of the aviation industry is part of Chengdu's long-term strategy," said Liu Xuejun, director of port services at the city's Logistics Office.
His office is working with domestic and international airlines and logistics firms to upgrade aviation infrastructure. It is also seeking to optimize services for passengers and cargo transporters by coordinating the work of quarantine inspection and customs.
According to a blueprint released by the Sichuan provincial government last month, Shuangliu International Airport will be among the top 30 airports in the world by 2020, with annual passengers reaching 63 million and cargo turnover totaling 1.1 million tons.
The plan calls for Shuangliu to enhance its position as a regional hub, expand global ties with international logistics companies and encourage more regional air routes. An earmarked fund will underpin that development.
The city even has a new airport on the drawing boards to handle the expected increase in loads, with direct air routes linking Chengdu to international destinations projected to reach 35 by 2015.
Chengdu has been actively recruiting international businesses to the city. Intel moved the majority of its manufacturing capacity there in late 2005, requiring transport to ship chip spare parts to Hong Kong for trans-shipment overseas.
Foxconn also relies on air transportation to deliver orders for consumer electronics companies like Apple.
The logistics office worked with Shenzhen Donghai Airlines Co, which launched four new flights a week in 2008 to ensure timely delivery.
All Nippon Airways opened a Chengdu branch in 2011.
Best inland choice
"We chose Chengdu over other inland cities because it is a well-developed regional international hub as well as a famous tourist attraction," said Hiroyuki Nemoto, general manager of ANA's Chengdu office.
"Many manufacturers are moving production capacity inland, and that brings huge logistics and transport demand from Japanese, European and North American companies," he told Shanghai Daily.
"The development of Chengdu's logistics in recent years reflects the city's economic restructuring," said Chen Zhongwei, director of the Chengdu Coordination Office for the Development of Modern Logistics.
Logistics giants UPS, Fedex and DHL have all opened direct air cargo routes connecting the city and overseas destinations.
A number of electronics companies in the city, including Dell and Apple, heavily rely on cargo transport to deliver their products to overseas markets. That's true also for the automotive industry.
Kerry EAS Logistics Ltd began operations in Chengdu in 2009, with an initial investment of 50 million yuan. Since then, the value of cargo handled has doubled every year, the company said.
Kerry EAS upgraded its warehouse in Chengdu last year after signing a contract with the local government to build the second phase for its logistics center.
"The western region has shown strong demand for cargo transportation and logistics services," said Liu Gangcheng, general manager of the firm's Chengdu operations. "For Kerry EAS, the focus of our business in western China will be in Chengdu and Chongqing in the next few years."
This year, Chen Zhongwei said his office will work with logistics companies to ensure smooth courier delivery services and raise the efficiency for deliveries by online vendors and community supermarket chains.
Chengdu, capital of China's southwestern Sichuan Province, is a city going places. In June it will host the prestigious Fortune Global Forum, acknowledgement of Chengdu's growing reputation as a major business center. Much of this success can be attributed to the city's dynamic "can-do" attitude, helping create an environment where industry can prosper and where leading multinationals are choosing to set up headquarters.
There is an old Chinese saying that the narrow paths to Sichuan are as difficult as climbing up to heaven.
Nowadays, most of the transport in and out of the mountainous province involves little climbing apart from trekking holidays. Business and pleasure travelers to one of China's most populous provinces come by plane, road and rail. The provincial capital Chengdu is the transport hub of southwestern China, particularly where air transport is concerned.
An estimated 31.5 million people were expected to have passed through the city's Shuangliu International Airport last year, an 8.4 percent increase from 2011.
Air connections this year are set to increase, with three more routes to Europe and two to the Middle East.
Currently, the airport offers 92 domestic destinations and 49 offshore routes.
In the next two years, the city will begin more direct cargo routes to cities in the United States and raise the frequency of existing ones.
"The aviation industry is closely related to the local exhibition, commerce and finance industries, and development of the aviation industry is part of Chengdu's long-term strategy," said Liu Xuejun, director of port services at the city's Logistics Office.
His office is working with domestic and international airlines and logistics firms to upgrade aviation infrastructure. It is also seeking to optimize services for passengers and cargo transporters by coordinating the work of quarantine inspection and customs.
According to a blueprint released by the Sichuan provincial government last month, Shuangliu International Airport will be among the top 30 airports in the world by 2020, with annual passengers reaching 63 million and cargo turnover totaling 1.1 million tons.
The plan calls for Shuangliu to enhance its position as a regional hub, expand global ties with international logistics companies and encourage more regional air routes. An earmarked fund will underpin that development.
The city even has a new airport on the drawing boards to handle the expected increase in loads, with direct air routes linking Chengdu to international destinations projected to reach 35 by 2015.
Chengdu has been actively recruiting international businesses to the city. Intel moved the majority of its manufacturing capacity there in late 2005, requiring transport to ship chip spare parts to Hong Kong for trans-shipment overseas.
Foxconn also relies on air transportation to deliver orders for consumer electronics companies like Apple.
The logistics office worked with Shenzhen Donghai Airlines Co, which launched four new flights a week in 2008 to ensure timely delivery.
All Nippon Airways opened a Chengdu branch in 2011.
Best inland choice
"We chose Chengdu over other inland cities because it is a well-developed regional international hub as well as a famous tourist attraction," said Hiroyuki Nemoto, general manager of ANA's Chengdu office.
"Many manufacturers are moving production capacity inland, and that brings huge logistics and transport demand from Japanese, European and North American companies," he told Shanghai Daily.
"The development of Chengdu's logistics in recent years reflects the city's economic restructuring," said Chen Zhongwei, director of the Chengdu Coordination Office for the Development of Modern Logistics.
Logistics giants UPS, Fedex and DHL have all opened direct air cargo routes connecting the city and overseas destinations.
A number of electronics companies in the city, including Dell and Apple, heavily rely on cargo transport to deliver their products to overseas markets. That's true also for the automotive industry.
Kerry EAS Logistics Ltd began operations in Chengdu in 2009, with an initial investment of 50 million yuan. Since then, the value of cargo handled has doubled every year, the company said.
Kerry EAS upgraded its warehouse in Chengdu last year after signing a contract with the local government to build the second phase for its logistics center.
"The western region has shown strong demand for cargo transportation and logistics services," said Liu Gangcheng, general manager of the firm's Chengdu operations. "For Kerry EAS, the focus of our business in western China will be in Chengdu and Chongqing in the next few years."
This year, Chen Zhongwei said his office will work with logistics companies to ensure smooth courier delivery services and raise the efficiency for deliveries by online vendors and community supermarket chains.
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