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Shuangyang District Comprehensive Logistics Park Project of Changchun City
2017/03/23     Source:

1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

Comprehensive logistics Park refers to the whole process of the effective flow of information related to raw materials and finished products from the starting point to the terminal point. It also is the organic combination of transportation, storage, loading and unloading, processing, sorting, distribution and information etc. The formed complete supply chain provides multi-functional and integrated services for user. Comprehensive logistics Park is an important node of logistics network. It converges, mediates and manages the activities occurred in logistics chain. It has the function of supply chain management. Through the planning, coordination and control over the activities happened in the logistics chain, logistics activities will be carried out more efficiently on the basis of integration, effectively reducing the overall cost of supply chain and improving the overall performance of supply chain. For the adjustment of industrial structure, it is of great significance for the reduction of distribution costs and the increment of enterprise revenue which can provide guarantee for the security of materials and products.

Shuangyang Comprehensive logistics Park is planned to be constructed into a freight hub. The area that the project covers is 340,000 m2 and the total construction area is 180,000 m2. A railway line is planned to be constructed in the park with the estimated annual cargo throughput of 3 million tons. Shuangyang Comprehensive logistics Park Project is invested and constructed by Changchun Mingli Comprehensive logistics Industry Park Co., Ltd. Business scope includes: cargo transportation, warehousing, loading and unloading, processing, agency, and distribution; development and construction of comprehensive logistics park; distribution of gasoline, diesel and natural gas (only limited to branch institutions) (for the activities which shall be legally approved, business activities can be carried out with the approval of the relevant governmental departments). Till now, First Phrase Project has been completed preliminarily. Fuel and gas filling stations have been put into operation.

1.1.2 Market Overview

With the rapid development of China’s economy, China’s logistics industry is developed rapidly. According to the website of National Development and Reform Commission, the notification for general information jointly issued by the National Development and Reform Commission, the National Bureau of Statistics and China Federation of Logistics and Purchasing, from the view of 2014 national logistics operation conditions as shown in Figure 1, the total amount of social logistics and the total costs of social logistics from 2004 to 2012 are increasing and the total amount of social logistics and the total costs of social logistics are maintained at steady growth rate, and the scale of logistics park is gradually expanding.

As shown from data, the total amount of the social logistics of the whole country in 2014 reaches 213.5 trillion Yuan, calculated at comparable prices, increased by 7.9%, and the growth rate is down 1.6 percentage points over that of the previous year. From the view of composition, the total logistics amount of industrial products is 196.9 trillion Yuan, increased by 8.3%; the total logistics amount of imported goods is 12 trillion Yuan, increased by 2.1%; the total logistics amount of renewable resources is 845.5 billion Yuan, increased by 14.1%; the total logistics amount of agricultural products is 3.3 one trillion Yuan, increased by 4.1%; the total logistics amount of institution and resident products is 369.6 billion Yuan, increased by 32.9%.

It also indicates that the total social logistics cost in 2014 is 10.6 trillion Yuan, increased by 6.9%, where, the transportation cost is 5.6 trillion Yuan, increased by 6.6%; storage cost is 3.7 trillion Yuan, increased by 7.0%; management cost is 1.3 trillion Yuan, increased by 7.9%. The ratio of the total social logistics costs to GDP is 16.6%.

Meanwhile, the total revenue of the logistics industry is steadily growing. As shown from data, the total revenue of the logistics industry in 2014 is 7.1 trillion Yuan, increased by 6.9%. This shows that since the adjustment of volume of freight traffic and turnover volume and the revision of GDP in 2013, the ratio of the total social logistics cost to GDP and the total revenue of the logistics industry have been adjusted accordingly.

Figure 1: Development of Logistics Industry in China

It is more and more important for the construction of comprehensive logistics park, setup of warehousing facilities and the purchase of product distribution equipment that are proposed in this project in order to make it become a bridge connecting a dispersed producers and market and a transport hub connecting to the surrounding areas. “Invisible hand” – market shall be made into full play to optimize the allocation of resources and adjust the development national economic.

1.1.3 Advantageous Conditions of Project Construction

(1) Policy advantage

Shuangyang District Government pays attention to the construction of the comprehensive logistics park project. This project can enjoy Shuangyang District’s preferential policies on investment attraction and “41 + 1” given by the provincial and municipal governments and the policy of “county benefits from the county, district benefits from district” which is specified in No. 41 Document.

This project can enjoy the policy on the governmental support for the construction of modern service industry project of Shuangyang District People's Government.

(2) Location advantage

Shuangyang District is 37 km from the center area of Changchun City. Shuangyang District is located in the center part of Jilin Province, and in the southeast of the center area of Changchun City. It is in the half -hour economic circle of Changchun. It is the strategic functional area in the spatial pattern of Changchun Urban Planning. The northern region has been included in the control line of main urban area.

(3) Transportation advantage:

The construction of road network is Shuangyang District is rapid. The road network extends in all directions. All the roads are paved with asphalt. There are two roads in Shuangyang District, i.e. Changqing and Shuangjiang Roads connected to the main urban area of Changchun City. Shuanglong Road connects to Changchun Longjia International Airport. Changchun-Shuangyang-Yantongshan Railway has been put into operation since its construction is completed on July 12, 2008. The length of railways is 105.367 km, running through Shuangyang from the north to the south, connecting Shenji Railway and Beijing-Harbin Railway. Changchun – Shuangyang - Yantongshan Railway is the key transport infrastructure project of Jilin Province during the 12th Five-Year Plan which is aimed to revitalize the old industrial base of the northeast. It is the first railway under the joint investment of the Ministry of Railways and Jilin Province. The railway starts from Longquan North Station of Changchun in the north, passes through Quanyan, Sheling, Shuangyang, Shanhe, and Wujiazi. It is connected to Yantongshan Station of Shenyang – Jilin National Railway, and to Harbin-Dalian Railway and Shenyang – Jilin Railway. The overall length of railway is 93.78 km. Meanwhile, Changchun–Shuangyang-Yantongshan Railway makes the transportation distance between Changchun-Tumen Railway and Shenyang-Jilin Railway shortened by 114 km.

(4) Talent advantages

A number of logistics professionals are graduated from the key universities in Changchun City. They can provide technical supports for the logistics park project. Abundant human resources of professional and technical personnel are the strong backup for the implementation of the project.

1.2 Content and Scale of Project Construction

1.2.1 Product Scale

Shuangyang Comprehensive logistics Park is planned to be constructed into a freight hub. The area that the project covers is 340,000 m2 and the total construction area is 180,000 m2. A railway line is planned to be constructed in the park with the estimated annual cargo throughput of 3 million tons.

Shuangyang Comprehensive logistics Park Construction Project is divided into three phrases. Till now, First Phase Project (No. 1 Plant, Gas Station) and Second Phase Project (No. 2, 3, and 4 Plant) and vehicle inspection yard have been completed.

1.2.2 Construction Content

Shuangyang Logistics Park Project is planned to build 6 functional centers, e.g. intercity logistics center, urban distribution center, information service center, transportation service center and life service centers.

(1) Intercity logistics center: the operators of logistics service platform are the starting points and form the logistics platform network and channel, expand the industrial scale and extending upstream and downstream industry chain in order to reduce logistics costs, co-ordinate information resources and achieve the goal of efficient allocation of social resources. It has the functions of freight forwarder, cargo transit and warehousing functions.

(2) Urban Distribution Center: Attract urban distribution (urban delivery services) companies settling down, and undertake the delivery services throughout the urban area in order to become the urban distribution network platform.

(3) Information Service Center: Built the second-hand car market and establish the freight distribution and loading system, information transaction hall, freight line checking system, palm cargo allocation system, vehicle integrity inquiry system, customer service voice system and electronic transaction to provide business platform for enterprises settling down.

4Transportation Services Center: Include the functions of auto parts sales, auto maintenance and management and parking.

5 Business Office Center: construct a place which can satisfy the needs of logistics companies on professional office, business negotiation and communication in order to provide more convenient environment for the transaction of customers.

6 Life Service Center: construct Park Management Service Center, Driver Hotel and Logistics Managers Apartment to meet all kinds of demands on accommodation, leisure, dining, shopping and entertainment and living needs of staff working in the park, e.g. accommodation and dining, etc.

1.3 Total Investment of the Project and Capital Raising

 Table 2: Summary Table of Total Investment of the Project   Unit: RMB10,000

No.

Expense Name

Amount of Investment

Proportion of Total Investment %

Remarks

1

Construction investment

84000

98.8

 

2

Interest incurred in construction period

 

 

 

3

Working capital

1000

1.2

 

 

Total investment of the project (1+2+3)

85000

100.0

 

1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes

No.

Name

Unit

Index

Remarks

1

Sales income

RMB10,000/a

45000

Normal year

2

Total profit

RMB10,000/a

13000

Normal year

3

FIRR of all investments

%

11

After income tax

4

FNPV (Ic=10%)

RMB10,000

6890

After income tax

(operation period 10 years)

5

Period for recovery of all investments (after tax)

a

8

Construction period not included

6

Rate of return on investment

%

12

After normal annual tax

Table 3: List of Major Indexes for Forecast of Economic Benefits 

Note: "RMB10,000" in the Table shall be RMB.

1.4.2 Social Evaluation

The construction of project can facilitate the structural adjustment and upgrading of the logistics industry in Shuangyang and Changchun City. The conservative and intensive land use plays a vital role to improve the urban environment and pollution problems. It is beneficial for the rational use of limited resources and the realization of maximization of social and economic benefits. It plays an active role in the promotion of economic development and social harmony.

1.5 Cooperative Ways of the Project

Joint venture and cooperation.

1.6 What to be Invested by Foreign Party

Capital.  

1.7 Construction Site of the Project

The project is located in the southwest of Shuangyang District, Changchun City. In the east of the project is the planned Jiawu Road, in the west is the planned Tiedong Road, in the south is South Ring Road, and in the north is the planned Bing 34 Road.

1.8 The On-going Condition of Project

Till now, part of the construction project has been completed. Currently, the search for joint venture partners is undergoing.

Project proposal has been completed.

2. Introduction to Partner

2.1 Basic Conditions

Name: Changchun Mingli Comprehensive logistics Industry Park Co., Ltd.

Address: Room 502, Labor Training Center Building, Shuangyang Economic Development Zone, Changchun

2.2 Overview

The legal representative of Changchun Mingli Comprehensive logistics Industry Park Co., Ltd. is ZHU Yunming. It was founded on December 6, 2012 with the registered capital of RMB 10 million Yuan. Business scope includes: cargo transportation, warehousing, loading and unloading, processing, agency, and distribution; development and construction of comprehensive logistics park; distribution of gasoline, diesel and natural gas (only limited to branch institutions) (for the activities which shall be legally approved, business activities can be carried out with the approval of the relevant governmental departments). Till now, First Phrase Project has been completed preliminarily. Fuel and gas filling stations have been put into operation.

2.3 Contact Method

Contact Person: Zhu Yunming

Tel: +86-18643188588

 

Contact Methods of Project City (Prefecture)

Contact UnitChangchun City Economic and Technological Cooperation Bureau

Contact PersonBo Zhanlin

Telephone0431-82763933  82765252

Fax0431-82763933

Emailcc82763933@163.com

Website of City/Prefecturehttp://www.ccmbc.com/

 

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