Modern Service Industry
E-commerce Logistics Park Construction Project of Siping City
1. Introduction to the Project
1.1 Project background
1.1.1 Product introduction
The project is located in Siping Economic Development Zone, and plans to build an e-commerce logistics park base covering urban and rural areas by building an e-commerce platform and a series of management software. The project can integrate the urban base with the rural local product sellers, share the same network platform, management software, consumers, procurement channels and information, and services, etc., and achieve the real “Internet + new ecology” by making use of the Internet without limitation.
1.1.2 Market prospect
(1) The development status of the e-commerce logistics industry
The electronic logistics solution constitutes the complete system of e-commerce logistics, which innovates traditional logistics management through the use of e-commerce technology (especially computer and information technology), realizing the informatization, automation, and networking of logistics. It is not only crucial for realizing the value of e-commerce, but also a key direction for the development of modern logistics.
The widespread application of cutting-edge technologies such as big data, cloud computing, the Internet of Things, and artificial intelligence has brought fundamental changes to the field of e-commerce logistics. These technologies have improved the efficiency and service quality of logistics, promoting the rapid development of the e-commerce logistics industry.
The government’s support for the e-commerce logistics field continues to strengthen, and a series of policy measures have been introduced, such as improving customs supervision and reducing logistics costs, providing solid support for the development of the e-commerce logistics field.
With the changing shopping habits and increasing purchasing power of consumers, the demand for e-commerce logistics is growing day by day. Consumers’ expectations for fast, convenient, and accurate delivery services are increasing, which is driving the continuous progress of the e-commerce logistics industry.
The scale of the e-commerce logistics market has been continuously expanding in recent years, with a significant growth rate. With the continuous expansion of the e-commerce market and the improvement of consumer purchasing power, the business volume of e-commerce logistics continues to increase. It is expected that in the next few years, with the continuous growth of the e-commerce market and the increasing demand from consumers, the scale of the e-commerce logistics market will continue to expand.
(2) Prospect analysis of e-commerce logistics
The e-commerce logistics field is renowned for its high efficiency, convenience, and wide coverage. By utilizing cutting-edge logistics technology and information systems, these enterprises can quickly deliver, accurately locate, and track in the real time to meet the diverse needs of consumers.
With the continuous expansion of the global e-commerce market and strong support from cross-border e-commerce policies, the competitive situation in the e-commerce logistics field is becoming increasingly diversified. Major listed companies such as SF Holding, Xiamen Xiangyu, COSCO Shipping, JD logistics, Sinotrans, and YTO Express hold key positions in the logistics field, with a wide range of business scope, including not only domestic logistics services but also cross-border e-commerce logistics services. These companies are adapting to industry changes through innovative business models such as self built logistics distribution, third-party logistics distribution, and logistics supply chain distribution. At the same time, the e-commerce logistics industry is accelerating the transformation towards intelligence and digitization, utilizing advanced technologies such as big data and artificial intelligence to improve logistics efficiency and service quality. Green logistics is also becoming a key direction for development, reducing carbon emissions and environmental impact through measures such as environment-friendly packaging and optimizing transportation routes, promoting sustainable development. It is expected that the cross-border e-commerce logistics market will continue to grow rapidly and become an important force driving the development of the global e-commerce market.
The e-commerce logistics industry faces multiple challenges, including diversified and personalized consumer demands, environmental pressures, and cost control. Meanwhile, the complexity and uncertainty of cross-border e-commerce has also brought new challenges to logistics enterprises.
With the advancement of technology and the expansion of application scenarios, the e-commerce logistics industry will face more development opportunities. For example, by establishing a smart logistics system, optimizing distribution networks, and expanding value-added services, we can create more values for the companies. Meanwhile, the rapid development of cross-border e-commerce has provided new growth opportunities for e-commerce logistics enterprises.
In summary, the e-commerce logistics market has broad prospects and enormous market potential. In the future, with the deepening of intelligent and digital transformation, as well as the development of new logistics models such as green logistics and cross-border e-commerce logistics, the e-commerce logistics industry will face more development opportunities and challenges.
1.1.3 Advantageous conditions of project construction
(1) Policy conditions
The Notice on Doing a Good Job in the Key Work of Cost Reduction in 2024 mentions the improvement of the modern logistics system. Steadily promote the construction of national logistics hubs and national backbone cold chain logistics bases, and promote the high-quality development of modern logistics. Add support for a group of cities to carry out national comprehensive freight hub chain supplementation and strengthening, promoting the integration of cross transportation modes. Continue to implement county-level commercial construction actions, support the construction and renovation of county-level logistics distribution centers and township express logistics stations, improve warehousing, transportation, distribution and other facilities, accelerate the filling of rural commercial facility shortcomings, and improve the county-level and rural logistics distribution system.
The Three-Year Action Plan for Data Element X (2024-2026) points out to promote internationalization, encourage e-commerce enterprises, modern circulation enterprises, and digital trade leading enterprises to integrate transaction, logistics, and payment data under the premise of security and compliance, and support the improvement of supply chain integrated services, cross-border identity authentication, global supply chain financing, and other capabilities.
In September, 2022, the country announced the first batch of 24 national backbone cold chain logistics base construction lists during the 14th Five-Year Plan. Siping National Backbone Cold Chain logistics Base, as the only approved city in Jilin Province in this batch, is the only non provincial capital city approved in Heilongjiang Province, Jilin Province, Liaoning Province and Mongolia in Northeast China. In February, 2023, the Development and Reform Commission of Siping City, together with a third-party evaluation agency, conducted on-site inspections on the cold chain logistics construction projects in 2024 declared by various counties (cities) and districts, including Yitong Livestock and Poultry Processing Industrial Park, Shuangliao City Urban and Rural Cold Chain logistics Base Construction Project, and Siping Hongping Meat Industry Co., Ltd. Phase II Expansion Project.
(2) Project advantages
As the fourth batch of national demonstration bases for new industrialization of the food industry, Siping fully leverages its resource advantages in grain, livestock and poultry. By continuously adjusting its product structure, extending its industrial chain, promoting brand cultivation, and strengthening its leading enterprises, Siping has formed an agricultural product processing industry system that mainly covers livestock and poultry processing, grain processing, green drinks, dairy product processing, etc. It has become the largest supporting sector for Siping’s industry, with an annual processing and transformation capacity of over 4 million tons of various grain crops. The market demand for e-commerce and logistics is very obvious.
(3) Location advantages
Siping is located in the central area of Northeast Asia, on the Harbin-Dalian first level development axis for revitalizing Northeast China. It is a bridgehead for the southern opening of the Harbin-Dalian urban agglomeration and a major pivot city in the central innovation and transformation core area of Jilin Province. The country is accelerating the development of the Harbin-Dalian urban agglomeration, providing significant strategic opportunities for Siping to build a new round of strategic pivot cities for the revitalization of Northeast China, establish a green industry and logistics distribution base, and establish a demonstration zone for regional cooperation between Mongolia, Jilin, and Liaoning.
Siping City links Liaoning Province, Jilin Province, and Inner Mongolia, with Shenyang and Dalian to the south and Changchun and Harbin to the north. It covers an area of 1.24 million square kilometers and is 500 kilometers away from Dalian International Shipping Center. Highways and high-speed railways will integrate Siping into the “half-hour urban circle” of Shenyang and Changchun. The construction of Siping Military Civilian Joint Airport is about to begin. It will build a three-dimensional transportation network of “railways, highways, and airports”.
Siping City is 242 kilometers away from Shenyang Taoxian International Airport; 161 kilometers away from Changchun Longjia International Airport; 388 kilometers away from Harbin Taiping International Airport; 550 kilometers away from Dalian International Shipping Center; 599 kilometers away from Dalian Port; 496 kilometers away from Dandong Port; 434 kilometers away from Yingkou Port.
1.2 Contents and scale of project construction
The total area of the project is 80000 square meters, and the specific construction contents are as follows:
(1) New logistics Industrial Park
Based on the main functions of warehousing, distribution, and supporting services in various industries, a logistics operation base warehouse, a warehousing center, a distribution center, a sorting center, and an information center for urban and rural public transportation in Siping City will be constructed. Cooperative relationships will be established with distributors and wholesalers in urban and rural areas. Through the base warehouse, cooperative distributors and wholesalers can share resources such as warehousing, logistics, and customers, reducing operating costs. Purchase vehicles, establish a fleet, conduct team building and practical exercises to achieve the “unified identification, unified vehicle models, unified management, unified technical standards, and unified operation management mode”.
(2) Construction of the E-commerce Platform
Build a regional logistics cloud management platform, and establish a comprehensive logistics chain within the region, including order publishing, warehousing, driver transportation, and delivery upon arrival. All personnel involved in the entire logistics chain (wholesalers, business personnel, warehouse managers, drivers, ordering customers) are at one end and can view and grasp the real-time location of goods orders, the information of the carrier vehicles and drivers, and the status of goods at any time through a computer client or mobile app, achieving real-time tracking of the entire transportation process of goods.
At the same time, relying on radiating network points, the project actively establishes training bases in towns and villages, promotes the coordinated development of e-commerce and logistics, promotes various rural end of pipe delivery models such as “online ordering and store pickup” for household goods, accelerates the construction of e-commerce logistics systems such as urban logistics operation bases and end of pipe distribution outlets, achieves ordering on the day and delivery on the next day, and improves the delivery efficiency.
1.3 Total investment of the project and capital raising
1.3.1 Total investment of the project
The total investment of the project is 200 million yuan, including the construction investment of 160 million yuan.
1.4 Financial analysis and social evaluation
1.4.1 Main financial indexes
After the project reaches the production capacity, its annual sales revenue will be 114.94 million yuan, its profit will be 34.48 million yuan, its investment payback period will be 7.8 years (after the tax, including the construction period of 2 years) and its return on investment will be 17.24%.
Note: “10 thousand yuan” in the table is in RMB.
1.4.2 Social evaluation
The base not only excels in the logistics speed and accuracy, but also makes positive efforts in environmental protection and sustainable development, which has established a good image in the industry. Community residents appreciate the low noise and pollution levels of the base, believing that its impact on the surrounding environment is minimal. In addition, the employment opportunities provided by the base and its positive contribution to the local economy have also been recognized by the local government and residents. In various social evaluations, e-commerce logistics bases have become a model for the logistics industry with their excellent service quality and commitment to social responsibility.
1.5 Cooperative way
Joint venture or cooperation
1.6 What to be invested by the foreign party
Funds, and other methods can be discussed in person.
1.7 Construction site of the project
Siping Economic Development Zone
1.8 Progress of the project
The project is in the planning phase.
2. Introduction to the Partner
2.1 Basic information
Name: Management Committee of Siping Economic Development Zone
Address: 1699 Kafa Road, Siping Economic Development Zone
2.2 Overview
Siping Economic Development Zone was established in 1998 and is the first provincial-level development zone approved by Jilin Provincial People’s Government in Siping City. It covers an area of 71.41 square kilometers and mainly cultivates three leading industries: medicine, health, green food (big health), automobile and equipment manufacturing, and modern services. There are currently 951 registered industrial and commercial enterprises. The Economic Development Zone has 12 high-tech enterprises, 10 provincial-level specialized and innovative enterprises, 12 provincial-level technology research and development centers, and 6 provincial-level science and technology small giant enterprises; it has 3 well-known trademarks in China, 5 provincial-level famous trademarks, 7 provincial-level famous brand products, and have obtained more than 100 invention patents.
The transportation location of the development zone is superior. The high-speed railway passenger line, Siping-Meihekou Railway Line, Beijing-Harbin Expressway, No. 303 National Highway, and the Ring Road all run through the development zone. The only high-speed railway passenger station and highway station in Siping City are located in the development zone. It has the strong industrial foundation. As one of the old industrial bases in Northeast China, Siping has a solid foundation in some industries such as medicine, food, automobile and equipment manufacturing, and modern services. Domestic well-known enterprises such as AVIC, Junlebao, Dayao, and Baixiang have invested in the area. The infrastructure is complete. The supply of investment factors such as water, electricity, gas, heating, heat, and communication is sufficient and at a low price standard throughout the province. It has adequate talent reserves. Two higher education institutions within the jurisdiction can provide talent reserves for enterprise development, and various vocational schools can provide order-based talent training for enterprises, providing continuous support for enterprise development.
2.3 Contact method
2.3.1 Contact method of the partner
Contact unit: Medical and Health Industry Investment Promotion Bureau of Siping Economic Development Zone
Contact person: Dong Chao
Tel: +86-13843462456
2.3.2 Contact method of the city (prefecture) where the project is located
Contact unit: Siping Bureau of Economic Cooperation
Contact person: Wen Dacheng
Tel: +86-434-3260536
E-mail: spjhjjhk@163.com