Study on the Logistics Cooperation between Chang-Zhu-Tan and
Pearl River Delta & Yangtze River Delta
HUANG You-heng
WU Jing
School of Traffic and Transportation Engineering, Central South University, Changsha, China, 410075
[email protected]
Abstract
Changsha-Zhuzhou-Xiangtan (Chang-Zhu-Tan), which acts as a central city group in
China has a great significance on the economic development between Pearl River Delta (PRD) and
Yangtze River Delta (YRD) as a result of strengthening the logistics cooperation of these two parts.
Seeing from the aspects of the economic and trade, the logistics channel connection and the regional
logistics cooperation, this paper analyzes the current regional logistics contact situation of
Chang-Zhu-Tan with PRD and YRD; upon the analysis of the present problems of regional logistic
cooperation, such as the lack of regional logistics cooperation and coordination mechanism, the slow
development of regional logistics channel, the low port logistics and poor conditions of port clearance,
etc., this paper proposes the following strategies to strengthen the logistic cooperation between
Chang-Zhu-Tan and PRD and YRD. That is to establish the cooperation harmonizing mechanism of
regional logistics; strengthen the connection and collaboration of logistics channel; substantially expand
the Xiangjiang River waterway transportation, and further improve the environment of customs
clearance as well as deepen the relationship of inter-regional ports, etc.
Key words
Chang-Zhu-Tan, PRD, YRD, Regional Logistics, Cooperation
1 Introduction
The city group of Chang-Zhu-Tan that is located in the central of China, neither along the sea nor
along the border, plays as an important role of city groups in Hunan province. It is the
synthesis-coordinated reforms pilot area of the National Resource Conservation and the Environment
Friendly Society Construction. Mutually, YRD and PRD are the most important economic cooperation
regions and the exchange port channels of Chang-Zhu-Tan even Hunan province. Thus, strengthening
the regional logistics cooperation of these two areas has a great practical significance on the economic
development of Chang-Zhu-Tan.
On the current research of regional logistics in China, Li Bing(2004) took the regional logistics
cooperation between Chongqing and Hong Kong for an example and presented a new regional logistics
cooperation model of applying 4PL service to integrate the regional logistics resources; Fan Fan(2006)
pointed out that we should establish Guangxi - ASEAN regional logistics system through the logistics
infrastructure, the logistics service network and the logistics practice etc.; Liu Changxiu(2006) proposed
the following strategies to strengthen the logistics cooperation at Yunnan’s Participation in
Lancang-Mekong Sub-regional Cooperation by speeding up the infrastructure construction, ensuring the
feature industry logistics accelerating the ports construction, and increasing the customs clearance
efficiency etc.; on the China - ASEAN regional logistics cooperation, Cen Liyang(2007) researched
from the policy organization mechanism, the logistics information platform and the logistics personnel
training etc.; regarding the cross-regional customs clearance, Yu Gang(2007) suggested Jiangxi province
should utilize the facilitated transport conditions at eastern coastal areas to construct a port logistics
platform which will service to the regional economic development; in Fujian-Guangdong-Jiangxi
economic cooperation zone logistics cooperation, Wang Hongpeng(2008) put forward that we should
cooperate by building the logistics system, integrating the regional logistics services and strengthening
coordination among governments. The above-mentioned studies show that the study of the regional
logistics cooperation arose from the practice and the development of inter-regional logistics. The paper
researches the main issues of the regional logistics cooperation between Chang-Zhu-Tan and YRD and
PRD as follows.
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2 Current Regional Logistics Contact Situation of Chang-Zhu-Tan with PRD and
YRD
2.1 Economic and Trade Situation of Chang-Zhu-Tan, PRD and YRD
The economic communication between Chang-Zhu-Tan and PRD is close, and their economic
developments are interdependent and mutually reinforced. Among the 2.85 million tons of grain that
Hunan exported outside of province in 2006, 1.78 million tons were shipped to Guangdong province.
The live pigs that Hunan sold to Guangdong and Hong Kong & Macao every year have accounted for
40% and 20% of their local markets respectively. Meanwhile, PRD is the most important export port for
Chang-Zhu-Tan even Hunan province. Most of the import and export trade of this area is transited via
Hong Kong. The major export products of Chang-Zhu-Tan are mechanical and electrical products,
fireworks, potteries and agricultural products that are usually transported to PRD ports by rail or road
and then exported. For example, before China's firework explosion accidents in Sanshui port in
Guangdong province in 2008, 60% of the total exported fireworks of Chang-Zhu-Tan were carried by
road and then by way of Sanshui port for exportation.
With the further improvement of the investment environment of Chang-Zhu-Tan and the
development of competitive industries, economic ties with YRD have been strengthened in attracting
investment and cooperating in projects. Chang-Zhu-Tan has made a remarkable achievement in the
aspect of investment in the “2008 Hunan (Shanghai) investment and negotiation Week”. Meanwhile,
YRD is another important export port for Chang-Zhu-Tan even Hunan province, especially Shanghai
port which has become the important export and import bridgehead of Chang-Zhu-Tan. For instance,
80% of exports and 25% of imports of the material from Xiangtan Iron and Steel company are
transported following Xiangjiang-Yangtze channel to Shanghai port; quite a number of Liling potteries
are transported by Shanghai-Kunming railway and exported by Shanghai port; moreover, a large number
of raw materials, the bulky products of steels and engineering mechanics of Chang-Zhu-Tan are
exported and imported by Shanghai port.
2.2 Regional Logistics Channel Connect Situation of Chang-Zhu-Tan and PRD & YRD
Presently, an integrated transport system of waterway, land route and airway has been formed in
Chang-Zhu-Tan, PRD and YRD. The main transport links with Chang-Zhu-Tan and PRD are
Beijing-Guangzhou railroad which stretches towards the north and the south, Wuhan-Guangzhou
dedicated passenger line, Luoyang-Zhanjiang railway, Beijing-Zhuhai freeway, the forthcoming
constructing freeway erlianhaote-Guangzhou and the national highways of 107,106 and 207 which
advantage Chang-Zhu-Tan to export and import via the port of PRD. While the transport links with
Chang-Zhu-Tan and YRD are mainly the east-west of Shanghai-Kunming railway, Shanghai-Ruijin
thruway, the national highways of 319 and 320, and the waterway Xiangjiang River -Yangtze route. The
waterway Xiangjiang River -Yangtze route is not only the important channel linking with
Chang-Zhu-Tan and YRD, the most economic sea-lane of Chang-Zhu-Tan, but also the unique external
water channel of Chang-Zhu-Tan.
2.3 Current Regional Logistics Cooperation Situation of Chang-Zhu-Tan and PRD & YRD
With the recently constant development of regional economics, government has realized the
significances of regional logistics development on the economic structure optimization, investigation
environment improvement and the whole regional competition enhancement. The regional logistics
cooperation between Chang-Zhu-Tan and PRD & YRD has already been gradually strengthened. It can
be seen from the following events. Firstly, in June, 2003, the mainland of China and Hong Kong signed
<the Mainland and Hong Kong Establish Closer Economic Partnership Arrangement> which has
achieved zero-tariff for the goods trade between the two sides; secondly, in July, 2005, <The Agreement
of Modern Logistics Cooperation in the Pan-Pearl River Delta > was signed to promote regional
logistics cooperation; lastly, <The Agreement of Strengthening the Big Clearance Cooperation between
Shanghai and Six Central Provinces, and Promote Modern Logistics Development> was signed in
Hunan in August, 2006. With no doubts, these agreements have played a leading role of promoting
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regional logistics development for Chang-Zhu-Tan with PRD and YRD.
In addition, the port cooperation between Chang-Zhu-Tan and PRD & YRD is becoming firmer.
The cooperation mechanisms for regional customs, inspection and quarantine bureau, anti-smuggling
and international logistics have been established and developed into depth. Changsha Customs and
Hunan Entry-Exit Inspection and Quarantine Bureau have participated in the mechanism reform of YRD,
the Pan-Pearl River Delta regional clearance and the quarantine, and also reached an agreement with a
number of coastal port customs and inspection and quarantine bureaus. Changsha Customs has launched
a new customs clearance mode of "declaration of territoriality, port inspection and release" to achieve
"one declaration, one check and one release", which gives priority to the inter-zone entry and exit
clearance of goods. Meanwhile, the port cooperation of Hunan province and Shanghai is being
strengthened. Shanghai International Port (Group) Co., Ltd. actively participates in constructing the
international logistics system of Hunan province, which has made substantive progress to cooperation
with Xianing port of Changsha and Xiangtan port, and provided a convenient service to the exported
fireworks of Chang-Zhu-Tan.
3 Issues of Regional Logistics between Chang-Zhu-Tan and PRD & YRD
(1) Lack of a long-term mechanism for regional logistics cooperation
The regional logistics cooperation between Chang-Zhu-Tan and PRD & YRD is an inevitable
requirement of regional economic cooperation, but because of the gap of the geographical location and
economic development, a gap of logistics development was made. This gap may arouse the issues of
authority and obligation in many aspects, result in the different concern on the space and the cooperation,
and form the unequivalence in authority and obligation. For example, fireworks and firecrackers, the
distinct products of Chang-Zhu-Tan, are mainly exported through some ports in PRD and YRD.
However, due to some special reasons, the exportation of these products is blocked and not that smooth.
To some extent, this will impair the economic development of Chang-Zhu-Tan. Therefore, establishing a
long-term regional logistics cooperation mechanism is the most important and primary task for
Chang-Zhu-Tan with PRD and YRD.
(2) The slow development of regional logistics channel
Beijing-Zhuhai freeway, the only freeway of Chang-Zhu-Tan and PRD, has acted as the most
important backbone, which connects Guangdong with half of China. According to some statistics,
Beijing-Zhuhai freeway has operated traffic volumes 7480 times averagely each day since April 2003.
During the Spring Festivals, it even reached 16,512 times daily. On account of such situation, the design
of two-way with four-lane for Beijing-Zhuhai freeway is not perfect, and the speed of vehicles can only
reach 50 km / hour in some sections. Moreover, the law, the order and the warehousing services along
the channel are also relatively poor; various unexpected accidents can also impede the smooth and
stability of logistics transport frequently.Besides, the logistics development of Xiangjiang
River-Yangtze waterway logistics channel was hampered due to the restriction of poor port
infrastructure and Xiangjiang River channel. It is mainly represented by the irrational structure of each
pier, which makes the transference of waterway to railway unable to accomplish automatically; by
serious inadequacy of berth facilities, short kiloton berth and long dry season in Xiangjiang River. All of
these cannot meet the need of large-scale and containerized shipping.
(3) Unsatisfactorily low port logistics and big clearance of Chang-Zhu-Tan
Chang-Zhu-Tan has done a lot of work in the construction of big clearance and the customs
clearance efficiency has been greatly improved. However, due to the disadvantage of geographical
location (central region) restrictions, Chang-Zhu-Tan’ big clearance efficiency is lower and the logistics
level is not high comparing with the open coastal cities. To some extent, it will limit the development of
foreign trade for Chang-Zhu-Tan. According to the latest statistics by World Bank in 2006 at the Forum
of the Forth Investment Environment held in China, it costs 19.8 days to clear customs in Changsha,
which ranks the 24th among the 29 central cities, far higher above that of some central China capitals
like Nanchang, Wuhan etc. In recent years, Shanghai port has achieved a status of “a year of 365 days,
every day can clearance” by strengthening the big clearance project. And also it offered an "one-stop"
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service for enterprises, accelerated the construction of electronic port, and used science and technology
to greatly improve the customs clearance efficiency, which has made the export operations
accomplished at the same day and shorten the import operations time from 4 days to 1.7 days averagely.
In the meanwhile, February 2008, the first phase trial operation of regional examining center was
launched in Guangdong. This meant that Guangdong is the first province that has broken the customs
confines insides the province and established a “fictitious regional examining center”. The development
gap of port logistics between Chang-Zhu-Tan and PRD & YRD has a profound influence not only on
the attraction to undertake and transfer industry for Chang-Zhu-Tan, but also on the logistics
cooperation and connection of Chang-Zhu-Tan with PRD and YRD.
4 Regional Logistics Cooperation Countermeasures for Chang-Zhu-Tan and PRD
& YRD
(1) Constructing regional logistics cooperation and coordination mechanism
Chang-Zhu-Tan takes the initiatives to meet PRD and YRD by setting up an inter-regional logistics
coordination agency, establishing regional logistics cooperation and coordination mechanism,
communicating the relationship of logistics management departments, and coordinating the matters
about the development of regional logistics. At the same time, regional logistics management
departments or coordination agency should hold regular meeting to discuss the existing problems of
regional logistics development, form of a long-term mechanism for regional cooperation in logistics;
While Chang-Zhu-Tan should promote the cooperation of all the logistics market players, and establish
the strategic union. In accordance with the needs of the laws of the market economy and the regional
logistics cooperation, the government should adjust and optimize the structure of logistics enterprises,
combine and restructure the logistics enterprises, establish cross-regional large-scale logistics group and
logistics enterprises union, push the regional cooperation in logistics of Chang-Zhu-Tan with PRD and
YRD.
(2) Strengthening the connection and cooperation of logistics channel
Chang-Zhu-Tan has taken advantage of many national highways, freeways and railways converge
and strengthening the connection and cooperation with logistics infrastructure of PRD and YRD to
improve the construction of port passage for the need of the development of regional logistics
cooperation. They focus on improving the freight stations and port docks of PRD and YRD, and
establishing “Green Channel” for transporting the agricultural products between Chang-Zhu-Tan and
Macao & Hong Kong.
(3)Vigorously expanding Xiangjiang River waterway transportation business
Xiangjiang River is the main water transport channel between Chang-Zhu-Tan even the whole
Hunan
province
and
YRD.
Before
establishing
shipping
contact
channel
of
Xiangjiang-Yangtze-Shanghai port, it is necessary to strengthen constructing the infrastructure of
Xiangjiang waterway and port, and extending the function of Jinxia bonded logistics center in Changsha,
advancing the uploading and downloading port and clearance efficiency, all-round services and more
favorable policies for shipping corporations and international logistics corporations will also be helpful
to attract them as many as possible; Chang-Zhu-Tan should make full use of the low-cost, high volume
characteristics and other advantages of waterway transport, vigorously developing the Xiangjiang
waterway transportation, providing logistics platform for the materials exchange of the two places and
the import and export of bulk goods.
(4) Further upgrading clearance environment, and deepening big clearance of interregional port
Chang-Zhu-Tan should strengthen connection and cooperation with PRD and YRD, reinforce the
cooperation for simplification and identification between ports, and gradually to reach fast clearance,
convenient clearance and efficient clearance, and finally realize the communication and cohesion
between the two logistics regions as well as all kinds of conveniences to improve regional logistics
network capacity. Specific strategies are as follows: first, Chang-Zhu-Tan takes the initiative to meet the
customs of coastal port and inspection and quarantine bureaus, and to reform clearance inspection model,
reasonable pre-and post-transfer port operations at their support, and gradually fulfill the mutual
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communication and information sharing among customs, inspection and quarantine bureaus, maritime
safety administrations, ports and concerned corporations. It is sure these forms of networking
verification, interconnection of customs clearance operations coordination mechanism will eliminate
logistics barriers because the administrative divisions and the logistics setting, effectively integrate
resources, simplify customs procedures, improve regional customs clearance efficiency. Moreover, it
promotes a new mode of customs supervision “declaration of territoriality, port inspection and release”,
and actively introduces a new mode of customs examination “fictitious regional examining center”.
Secondly, vigorously promoting the new mode of clearance inspection "production examining,
monitoring and packing together, local closure container, direct clearance” of dangerous goods such as
fireworks will be good choice .Chang-Zhu-Tan should actively coordinate with the fireworks export
harbor area of inspection and quarantine bureau, maritime safety administration and fire department,
such as the coordination of consultations, and shift these departments to fireworks production factory,
and make the whole process including pack and inspect completed in customs supervision warehouse
with the aid of electronic identification cards in each container. The port can monitor fireworks
producing, packaging, commodity inspecting and every aspect through video, and then ship the
fireworks to the port and gain direct clearance. Thirdly, they should construct channels for fast logistics,
vigorously expanding multi-modal transportation, improve railways and highways for containers and
form an integration system of network, cooperating with railway-sea coordinated transport, river-sea
coordinated transport, air code-sharing and electronic port construction etc. to ensure the smoothness of
logistics channel in Chang-Zhu-Tan. Finally, it is also necessary to indispensable to actively promote the
rapid transit mode of licensing between Hunan and Guangdong & Hong Kong through truck, reducing
the cost and time of clearance from Chang-Zhu-Tan to Hong Kong, and further shorten the transit time
of import and export process.
5 Conclusions
Chang-Zhu-Tan, a central city group in China, which is gradually strengthening its logistics
cooperation with other regions especially with PRD and YRD has a important significance on the
development of export-oriented economy, and the promotion of the logistics cooperation on the aspects
of technology and management between the local and the developed regions. In order to strengthen the
regional logistics cooperation continuously, we should proceed with the following points: set up a
cooperation and coordination mechanism of regional logistics, promote the cooperation of the logistics
market players, and forge a strategic alliance; strengthen the connection and cooperation of logistics
channel, fulfill the construction of port passage; vigorously expand the transportation of Xiangjiang
River waterway, and provide a logistics platform for the materials exchange and the Import and Export
of bulk goods of Chang-Zhu-Tan and YRD; promote the new mode of clearance inspection
“declaration of territoriality, port inspection and release” and “production examining, monitoring and
packing together, local closure container, direct clearance” of dangerous goods such as fireworks, and
introduce a new mode of customs examination “fictitious regional examining center” to deepen the
interregional ports clearance as well as cooperate actively on the aspects of railway-sea coordinated
transport, river -sea coordinated transport, and air code-sharing, electronic port construction etc.
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