Market Size of China Project Logistics Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 2.00 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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China Project Logistics Market Analysis
The market for project logistics in China is anticipated to grow at a CAGR of more than 2% during the forecast period.
- It is expected that the short-term rise in oil prices will help the project cargo industry around the world.On the other hand, a long-term reduction in oil prices is anticipated, which will result in less money being invested in new projects.
- China produces a large amount of heavy freight that is sent abroad. China is the world's greatest producer of steel, and its capacity is ten times greater than that of the US. As a result, a country is a popular destination for other countries to import large steel structures.
- Additionally, thanks to the Belt and Road Initiative (BRI), infrastructure spending in China and its neighbors is rising quickly. The project enhances trade promotion and transportation infrastructure.
- Recent research shows that China's approach to international lending has changed. China's investments in infrastructure projects under its Belt and Road Initiative (BRI) have gone down, while Beijing's short- and medium-term help to partner countries, some of which are dealing with rising debt levels, has gone up.
- A report from the Green Finance and Development Centre (GFDC) at Shanghai's Fudan University says that China's investments and contracts in 147 countries added up to USD 28.4 billion in the first half of 2022. This is a 47% increase from the same time last year.Through investments, USD 11.8 billion was made, and through project contracts, USD 16.5 billion was made.
- The risks of moving project cargo are growing, not just in terms of the limit on how much can be moved, but also in terms of the Delay in Start-up (DSU) values at the end, where insurance amounts could reach USD 1 billion.
- When elements like re-fabrication, shipping, charges, lost revenues, and other operational costs are taken into account, a shipment's failure to arrive intact can result in a massive, multi-million dollar Delay in Start-up (DSU) loss. The BRI projects, which require shipping commodities over extremely lengthy inland transits to regions like Southeast Asia, are increasing this risk.
- In China, the ports of Qingdao, Dalian, Guangzhou, and especially Shanghai and Tianjin are typically used to handle project cargo.
- China's zero-COVID-19 policy had a big effect on global supply chains because it shut down many major cities for a long time, which would have been unthinkable before the pandemic.Restrictions associated with COVID-19 significantly reduced China's capacity for production, logistics, and people mobility, as well as its corporate and consumer trust.
- China is a major source of many consumer goods, parts for making things, and raw materials. The loss of its industrial and logistics capabilities has made global inflation worse by causing a persistent shortage of supplies in global markets that are all connected.
China Project Logistics Industry Segmentation
Project logistics refers to the logistics management for a specific undertaking. This covers the organization, management, and oversight of transportation. Transporting cargo securely and safely to a construction site for a particular project is the focus of project logistics.
The research includes a thorough background analysis of the China project logistics industry, a market overview, market size estimates for important segments, emerging trends by segments, and market dynamics. The Project Logistics Market is segmented by Service (Transportation, Forwarding, Warehousing, and Other value-added services), and by End Users (Oil and Gas, Petrochemical, Mining and Quarrying, Energy and Power, Construction, Manufacturing, and Other End-Users). The report offers Market size and forecasts for China Project Logistics Market in value (USD) for all the above segments.
By Service | |
Transportation | |
Forwarding | |
Warehousing | |
Other Value-added Services |
By End-user | |
Oil and Gas, Petrochemical | |
Mining and Quarrying | |
Energy and Power | |
Construction | |
Manufacturing | |
Other End-Users (Aerospace & Defense, Automotive, etc.) |
China Project Logistics Market Size Summary
The project logistics market in China is poised for growth, driven by several key factors. The country's status as the world's largest steel producer and its significant role in global heavy freight exports position it as a crucial hub for project logistics. The Belt and Road Initiative (BRI) further amplifies this by boosting infrastructure investments both domestically and in neighboring regions, enhancing trade and transportation networks. However, the market faces challenges such as the fluctuating oil prices, which could impact investment in new projects, and the complexities of transporting large and heavy project cargoes, especially with the increasing risks associated with long inland transits. China's ports, including Shanghai and Tianjin, play a vital role in handling this cargo, although the COVID-19 pandemic has previously disrupted supply chains and logistics operations, highlighting the interconnectedness of global markets.
In addition to traditional logistics, the market is experiencing a surge in demand for transporting wind power equipment, as the global shift towards renewable energy sources accelerates. China's substantial investments in wind energy, both onshore and offshore, underscore its commitment to expanding this sector, with significant capacity additions recorded in recent years. The country's automotive logistics sector is also expanding, with a growing fleet of car carriers to support rising auto exports and the demand for electric vehicles. Despite the fragmented nature of the project logistics market in China, dominated by numerous small and medium-sized enterprises, major players like COSCO Shipping Logistics and Sinotrans are key contributors. Recent developments, such as Maersk's establishment of a green logistics center in Shanghai and the Ocean Alliance's expansion, reflect ongoing efforts to enhance logistics capabilities and sustainability in the region.
China Project Logistics Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Current Market Scenario
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1.2 Market Dynamics
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1.2.1 Drivers
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1.2.1.1 Increasing Usage of Renewable Energies Boosts Opportunities for Project Logistics Companies
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1.2.1.2 Growth of E-commerce
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1.2.2 Restraints
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1.2.2.1 Cost - Intensive
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1.2.2.2 Lack of Skilled Labor
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1.2.3 Opportunities
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1.2.3.1 Belt and Road Initiative will creates more opportunities for the companies
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1.3 Government Regulations and Initiatives
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1.4 Technological Trends
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1.5 Spotlight - Belt and Road Initiative (BRI) and Investments
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1.6 Elaboration on risks involved in project cargo movement
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1.7 Impact of COVID-19 on the Market
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1.8 Value Chain / Supply Chain Analysis
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1.9 Industry Attractiveness- Porter's Five Forces Analysis
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1.9.1 Threat of New Entrants
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1.9.2 Bargaining Power of Buyers/Consumers
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1.9.3 Bargaining Power of Suppliers
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1.9.4 Threat of Substitute Products
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1.9.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Service
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2.1.1 Transportation
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2.1.2 Forwarding
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2.1.3 Warehousing
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2.1.4 Other Value-added Services
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2.2 By End-user
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2.2.1 Oil and Gas, Petrochemical
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2.2.2 Mining and Quarrying
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2.2.3 Energy and Power
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2.2.4 Construction
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2.2.5 Manufacturing
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2.2.6 Other End-Users (Aerospace & Defense, Automotive, etc.)
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China Project Logistics Market Size FAQs
What is the current China Project Logistics Market size?
The China Project Logistics Market is projected to register a CAGR of greater than 2% during the forecast period (2024-2029)
Who are the key players in China Project Logistics Market?
COSCO Shipping Logistics Co., Ltd., Chirey Group, Sinotrans (HK) Logistics Ltd., CJ Smart Cargo and Tiba Group are the major companies operating in the China Project Logistics Market.