Shanghai Daily news

Shanghai is pushing the logistics industry to be one of its key economic development sectors by 2010, part of efforts to establish itself as an important logistics terminal in Asia and the world.

The economic engine of China expects total value added of the industry to grow 10 percent annually over the next five years, according to the city's 11th five-year plan for the logistics industry, which was released to the public yesterday.

The pillar industry will then account for more than 13 percent of Shanghai's gross domestic product, the blueprint added.

"Accelerating the development of logistics in Shanghai plays an important role in forming a better industry structure focusing on the service sector," said Wu Zhengguo, deputy director of Shanghai Municipal Development and Reform Commission.

The whole gamut of the logistics industry will be developed, including port transfer, manufacturing, cross-cities delivery, international transfer, purchasing, distribution as well as third-party logistics and cooperation between the Yangtze Delta cities in the next five years.

Shanghai is building more logistics zones including the Yangshan Deep-Water Logistic zone, Waigaoqiao Bonded Logistics Park, Pudong airport logistics park as well as Northwest Logistics Park.

Favorable tax policies have helped to facilitate the development of the industry.

The importance of logistics is seen in the handling capacity of the Yangshan Deep Water Port, which handled 1.6 million tons of cargo worth US$22.7 billion in the first four months of the year, statistics showed.