Impact of CEPA on Transportation Logistics Industry.ppt

Impact of CEPA on Logistics Industry Presented by Anthony Lau Chairman Chief Executive BALtrans/Jardine Logistics Group 12 December 2003 Definition of Logistics Logistics is that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers requirements. Council of Logistics Management Drivers of Logistics Industry Globalization / global sourcing Need for Supply Chain Management Increasing logistics outsourcing Bottom line and competitive pressure Hong Kong Logistics Industry 4.8% of GDP. Total number of logistics related establishments are over 12,000. Total number of employees in logistics industry are some 80,000. A world class airport linking with 130 points around the world by over 70 international airlines and handling 2.5 million tonnes in 2002. The world’s busiest container port with record throughput of 19.1 million TEU’s in 2002. Hong Kong Logistics Industry (cont’d) The best airport and seaport in PRD. Over 1,000 professional and experienced freight forwarding agents operating in a well established international network. Well developed financial and legal services. One of the four pillar industries supported by government. China Logistics Industry The world factory which triggers A growth market for logistics Transportation and logistics expenditures were US$230 billion in 2001, or approx. 20% of GDP, double the level of the US. An average annual growth of 25% between 2000 and 2005 is expected. Exponential 3PL growth 3PL penetration rate is estimated to be 2%, much lower than the US (8%) and Europe (10%). Forecasting 16% to 25% annualized growth for 3PLs for the next 10 years. Opportunities Created by CEPA Asset based logistics industry Airlines, including integrators and couriers Shipping lines Warehouse operators Trucking companies Cargo terminal operat