E-com­merce boom pushes need for ware­houses

China Daily (Canada) - - NEWSCAPSULE -

Alibaba Group Hold­ing Ltd’s plans for a gi­ant ini­tial pub­lic of­fer­ing high­light the weak link the lo­gis­tics in­dus­try must fix — ware­hous­ing

Less than 20 per­cent of China’s ware­houses are cat­e­go­rized as mod­ern, with fully com­put­er­ized track­ing sys­tems and the lat­est in re­tail tech­nol­ogy, ac­cord­ing to Global Lo­gis­tic Prop­er­ties Ltd, the big­gest for­eign builder of lo­gis­tic fa­cil­i­ties in China.

By 2020, China’s e-com­merce sec­tor will be larger than those of the United States, Bri­tain, Ja­pan, Ger­many and France com­bined, KPMG re­ported. To cope with this surge, as much as $2.5 tril­lion may need to be in­vested in land and ware­houses over the next decade and a half, one builder said.

Last year, Alibaba an­nounced plans to lead a con­sor­tium to in­vest $16 bil­lion in the first phase of build­ing a na­tional lo­gis­tics busi­ness. (Photo 2)

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.