E-commerce boom pushes need for warehouses
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)