Involving over 10-billion-yuan worth of investment (US$1.2 billion), the centre will cover an area of 470 hectares and be located in the southeastern suburbs of Beijing. It will be fully completed by the end of 2007.

"The hub is along the Beijing-Tianjin-Tanggu Expressway, which can act as an inland port for Tianjin, one of China's three leading ports," Li Xiaohong, director and president of Beijing BHL Logistics Limited, told China Daily.

BHL is the key developer of the hub, and its partners include Kerry (Beijing), Hua Yuan Group and SOHO (China).

Official statistics showed that Beijing's foreign trade volume amounted to US$51.5 billion last year, 72 per cent of which were not from air freight.

Ninety per cent of the non-airlifted commodities, valued at US$36 billion, were transported via Tianjin port.

According to the plans for the overall scheme, the logistics centre will be at the core, with four affiliated exhibition parks, commercial and trade areas and comprehensive service and environmental protection,all of which will form to make the Beijing Logistics Hub a comprehensive logistics base.

Experts say the hub is vital in order to keep in line with international practices and to be able to offer a comprehensive service to export-orientated enterprise.

Zhang Mao, vice-mayor of Beijing, said that construction of the Beijing Logistics Hub will further improve the investment environment and improve logistics facilities in the capital.

"In addition, the move is in line with the Beijing's general developing scheme, which decided to make the service industry a key sector of the capital city's economy," said Zhang.

"Furthermore, it is necessary to meet the requirements of the 2008 Olympic Games, which requires huge logistics services in various aspects."

An official from Japan-based SMC said that the logistics hub will be of great assistance in increasing the efficiency of their company, and in turn cut their business costs in Beijing.

SMC established a base in the Beijing Economic & Technological Development Area, which neighbours the newly developed Beijing Logistics Hub, in early 1990's.

Recently, SMC built another plant in the Beijing Tianzhu Airport Area near the Capital International Airport.

"The choice will enable us to import and export our products conveniently and efficiently via sea and air transportation," the official said.

(China Daily December 27, 2002)