Intermodal Freight Transportation in China.

Transcription

1 Intermodal Freight Transportation in China

2 What is Intermodal Freight Transportation? 2 Photo: Akira Kodaka

3 What is Intermodal Freight Transportation? Intermodal Freight Transportation using multiple modes of transportation (rail, ship, and truck), without any handling of the freight itself when changing modes. Georgia Kazakhstan China Turkey Azerbaijan Benefits: Shorten freight transported time by reducing cargo handling Enhance security by decreasing damage & loss Save costs over road trucking for inter-continental use 3

4 Macroeconomic of China 4 Photo: Xinhua

5 After 10 Years of Surge, China International Trade is Keeping Steady China Trade in Goods with the World Since 1992 (Billion USD) Export, 1, Import, 1, Data Source: China Customs Administration 5

6 China Logistics Cost Keeps Decreasing, but Still High Compared to Other Developed Countries China Social Cost and % of Total GDP % % % % % % 16.0% % % 15.0% % Social Logistics Cost GDP Logistics % 13.0% Data Source: National Bureau of Statistics 6

7 China Intermodal Transportation Infrastructure 7 Photo: Reuters

8 China Infrastructure Overview Railway 121,000 km, Highspeed Railway 23,600 km Road 4,500,000 km, Expressway 131,000 km Airports #: 76 international, 235 civil Ports:7 of the world's top 10 ports by cargo volume Source: Ministry of Communications 8

9 Water-Rail Mode Growing Rapidly in 2018H1, Reaching 8.5m TEU by Jan-May, national ports have 2017 China's Export/Import Heavy Containers Volume and Water-Rail Penetration of Major Ports Heavy Container Volume (TEU) Water-Rail Intermodal % completed 1.75M TEUs of water-rail transportation, YOY 34.8%, with logistics saving by 13B RMB. Tianjin Port: 15M 3% Qingdao Port: 18M 4% Yingkou Port: 6M 12% Dalian Port: 11M 4% Yantai Port: 14M 1.7% Optimistic forecast, in 2020 China s container water-rail transport market demand is ~8.5M TEUs LianYunGang Port: 3M 5% Ningbo Port: 25M 2% Freight Volume (TEU) Data Source: China Waterborne Transportation Institute 9

10 Although Road-Rail & Water-Rail are Mainstream, Penetration Rate is Low Compared to US & Europe Water-rail Transport % in Marine Container China <2% USA Europe 40% 30-40% Railway Intermodal Transport % in Railway Freight ~3% 7 I-class railway companies :40%-50% Germany 33% 77% 67% 70% Road Freight Volume Structure 8% 15% 10% 4% 19% 21% 9% Rail Water Intermodal Structure NA Road-rail transport accounts for 53% Road-rail transport accounts for 56% China's long-distance road freight will be transferred to railways and waterways to achieve intermodal transport Road-rail transport, water-rail transport will be the main intermodal transport Source: Ministry of Transportation of China, Department of Transportation of USA 10

11 The Impact of e-commerce 11 Photo: 视觉中国

12 China Cross-Border e-commerce Continues to Boom China Market Trend for Cross-border e-commerce Cross-border ecommerce GMV(1000 Billion) Export & Import Trade(1000 Billion) By 2020 Online Trade % up to 37.6% More consolidated shipments and groupage consignments due to smaller volumes E 2019E 2020E Data source:ali Research, Commerce Bureau 12

13 But Intermodal Transportation Will Still Remain As the Largest, Because Supply Chain Agents would continue to be the Adaptor for Intermodal Transportation Industry to provide reliable transport services. Air freight LCL sea freight LTL trucking Distribution centers e-commerce Small Parcel Shipping Supply Chain Agents Aggregate volume Procure capacity Dispatch parcels Manage inventory Road-water Road-rail Road-air Intermodal Suppliers 13

14 The Trade War Effect 14 Photo: AP

15 How Great is the Impact to China? 73% of export, 82% of import of China are from Non-Americas areas Asia & Europe is dominating China international trade market 48% 27% 52% 19% 18% 19% 6% 11% Source: Ministry of Commerce 15

16 China USA Trade War Hastens the Shift in Global Supply Chain Sourcing route would be more complicated as CN-EU-US, CN-SEA-US, etc 16

17 China s One Belt One Road Initiative 17 Photo: Reuters

18 One Belt One Road is a Global Version of China Intermodal Network Data source:china Railway, Ministry of Commerce 18

19 One Belt One Road Instructure Progress Nearly 7,000 trains run in Central Europe, with 57 lines running, 35 domestic cities, and 34 cities in 12 countries in Europe. China's civil aviation and direct flights to 43 countries along the line, foreign airlines newly opened 18 national routes along the Belt and Road China has signed bilateral maritime transport agreements (river transport agreements) with 36 countries along the route, the EU and ASEAN. The national transportation logistics public information platform interconnect with 31 ports around the world. 19

20 By 2020, Market Scale for Intermodal Transportation to Reach 400B RMB (USD 58B) 3% of freight in China is by intermodal in % of overall freight would be transported by intermodal by 2020, with CAGR 24% 2016 China s Freight Market Size by Transportation Mode Freight market size (Billion RMB) China's Intermodal Transportation Market Forecast Intermodal transportation market size (billion Yuan) % Railway Highway Waterway Note: 1. Waterways include inland river transport and coastal transport. 2. US intermodal transportation ratio: 9% in 2013, 14% in 2040; China s intermodal transportation ratio: 3% in 2016, 6% in Data Source: US Department of Transportation, China Development and Reform Commission, China Ministry of Transportation. 20

21 China Policies in Improving the Network Transportation 21 Photo: Visual China

22 China Government is Actively Supporting Intermodal Network Development Improving Policies and Regulations Medium and long term planning for logistics industry Notice on initiating national intermodal transport pilot project Guidance on promoting healthy development of China Railway express Drafting "Measures on promoting intermodal transport development Drafting Recommendation on promoting intermodal transport development Building techniques and standards system of intermodal Promoting Healthy Development Integrated planning on CR express Strengthen the collaboration among domestic government official Improve the connection among countries along the routes Improve facilitation of customs clearance for intermodal transport Build international rules for intermodal transport 22

23 Developments Undertaken to Improve the Intermodal Network in China Large Logistics Channels and Nodes Schematic Diagram By 2020, China will set up 11 Large JingHu Channel BJ-HK-MC Channel NorthEest Channel NorthEest Channel NorthWest Channel QingYin Channel JieQiao Channel Yangzt Channel HuKun Channel Logistics Channels Strategic Positioning of Large Logistics Channels: Intermodal transportation corridor for cross-region, long-distance, high-intensity cargos Channel Network include: 85 Logistic Nodes,23 National Backbone Intermodal SouthWest Channel NorthSouth Costal Channel Hubs (city),51 Regional Key Intermodal Horizontal Chanel Vertical Chanel National Backbone Intermodal Hubs Regional Key Intermodal Hubs Landside Border Ports Data source:ministry of Communications Hubs (city), 11 Landside Border Ports 23

24 SF Express Supporting Intermodal Transportation 24 Photo: Air Cargo News

25 25 Years of Robust Growth Has distinguished foresight and early mover advantage Expansion into international markets with the launch of Singaporean business Successful backdoor listing and debuted on the A-share market on 24 Feb 2018 Founded in Shunde, Guangdong by Wei WANG Established headquarter in Shenzhen, to adopt direct management model Became China s first express delivery firm using air freight 2013 Brought in strategic investors (CICC Capital, China Merchants Group, etc) to facilitate the transformation to an integrated logistics service provider 2017 Achieved revenue of RMB 71.1Bn in FY SF Parcel Volume (Bn) CAGR 34.3% Source Company Filings, Company Information 25

26 SF Express is the Leading Integrated Logistics Service Provider in China Global express logistics integrated enterprise ranking of 2017 Other Achievements No.1 1. Market Share By Revenue 2. Customer Satisfaction 3. Preferred Express Brand 4. Largest Air Cargo Fleet 5. Market Cap Among Listed Chinese SF Express Entered Top 100 Most Valuable Global Brands 2018 Peers 6. Only Logistics Company Among Top 10 Innovative Companies In China 7. First Company Awarded the Operating License for Drones 8. First Company Approved To Establish Civil Cargo Air Hub 26

27 SF Express Product Portfolio To address market demand for diversified services, SF provides integrated logistics solutions for customers leveraging end-to-end service capabilities Time-definite Express Full-Truck-Load Economy Products International Express Express & Delivery Heavy Load Less-Than-Truckload Intra-city Delivery Heavy Load FTL Client-owned Warehouse Hive Box (1) Self-owned Warehouse Cold Chain Other Valueadded Services Insurance (2) Cold Chain Industrial Park Notes: 1. 15% owned by SF as of Dec Insurance price service 27

28 Thank you!