欧宝体育

1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The project is located in Hunchun City, covering two major areas: the construction of a new railway double tracks and a logistics distribution park. It aims to build an international logistics park with coal, minerals, grain, energy (including refined oil and natural gas), fresh seafood, wood, clothing, electronic products, and other bulk commodities as its core. The park will provide comprehensive services including cargo distribution, transit loading and unloading, multimodal transportation, customs supervision, production and processing, bonded warehousing, logistics, cross-border e-commerce, international trade, financial supply chain, etc.

1.1.2 Market prospect

(1) Current situation of the logistics industry market

According to the statistical data released by China Federation of Logistics and Purchasing (CFLP), the overall logistics industry in China maintained a stable growth trend in the first half of 2024, demonstrating significant elasticity and vitality. The total amount of social logistics in China reached 167.4 trillion yuan, a year-on-year increase of 5.8%. The first and second quarters increased by 5.9% and 5.7% respectively, continuing the rapid upward trend of the fourth quarter of the previous year. These data not only reveal the stable recovery of the domestic economy, but also highlight the key role of the logistics industry in the national economy.

In the first half of 2024, while the logistics industry continued to grow, it also faced challenges from fierce competition and market fluctuations in segmented markets.

According to the statistics from CFLP, the total logistics volume of industrial products increased by 5.8% year-on-year, while the total logistics volume of high-tech manufacturing industry achieved a rapid growth of 8.7%, indicating the significant driving effect of industrial upgrading on logistics demand.

However, in terms of imports, due to changes in the global economic situation and upstream demand, the import volume of bulk commodities such as crude oil and steel has decreased, while the logistics volume of intermediate categories such as integrated circuits has maintained a rapid increase, reflecting the optimization and improvement of logistics structure.

In the field of consumer goods, the rise of emerging formats such as live streaming e-commerce has further driven the growth of online retail logistics demand. The online retail sales of physical goods increased by 8.8% year-on-year, and the proportion continues to increase. Meanwhile, the total logistics volume of renewable resources increased by 11.1% year-on-year, indicating that green circular transformation is gradually becoming a new trend in the development of the logistics industry.

In the complex and ever-changing global economic environment, the logistics industry serves as a link between production and consumption, and its fluctuations are closely related to the global economy. The uneven global economic recovery has led to differences in logistics demand across different regions and industries. For example, the relatively stable recovery of developed economies provides sustained momentum for international logistics, while the uncertainty of emerging markets increases the complexity of logistics risks. This differentiation requires logistics companies to possess more acute market insights and stronger risk response capabilities.

The rapid development of cross-border e-commerce has brought new growth opportunities to the logistics industry. It not only requires logistics companies to have efficient cross-border transportation capabilities, but also seamless connections in customs clearance, warehousing, distribution and other links. At the same time, the diversity and personalized needs of cross-border e-commerce also drive logistics companies to continuously innovate service models and provide more flexible and convenient logistics solutions.

The expansion of the operation scale of China Europe freight train and the growth of the port container intermodal transportation volume not only demonstrates the progress of the logistics industry in internationalization and diversification, but also reflects the combined effect of policy promotion and market demand. These major events have brought new development opportunities for logistics enterprises, while also posing higher challenges and requirements.

(2) Market prospects of the logistics industry

According to the Investment Analysis and Prospect Forecast Report on China’s Logistics Industry from 2024 to 2028 released by China Investment Corporation Industry Research Institute, the total amount of social logistics in China reached 352.4 trillion yuan in 2023, an increase of 5.2% compared to the previous year at comparable prices, and an increase of 1.8 percentage points in growth rate compared to the previous year. Among them, the total amount of industrial logistics was 312.6 trillion yuan, an increase of 4.6%; the total logistics volume of imported goods was 18 trillion yuan, an increase of 13%; the total logistics volume of units and residential goods was 13 trillion yuan, an increase of 8.2%; the total logistics volume of agricultural products was 5.3 trillion yuan, an increase of 4.1%; the total amount of logistics for renewable resources was 3.5 trillion yuan, an increase of 17.4%. In the first eight months of 2024, the total amount of social logistics in China reached 225.0 trillion yuan, a year-on-year increase of 5.4% at comparable prices, a decrease of 0.1 percentage points from January to July; the monthly growth rate in August was 4.7%, a decrease of 0.6 percentage points from July.

The development prospects of China’s logistics industry are very broad and have enormous potential. In the segmented market, emerging sub sectors such as cold chain logistics, instant logistics, digital freight, cross-border e-commerce, and low altitude logistics will usher in opportunities for rapid development with deep integration with the industry. For example, the rapid growth of cross-border e-commerce has opened up new growth points for the logistics industry, requiring logistics companies to have efficient cross-border transportation capabilities, achieve seamless integration in customs clearance, warehousing, distribution, and continuously innovate service models.

In terms of green and low-carbon development, the carbon emissions of China’s logistics industry account for about 9% of the country’s total emissions. With the global response to climate change and the implementation of China’s “carbon peak and carbon neutralization” goals, the logistics industry has enormous potentials for green and low-carbon development and market space. Promoting the electrification of transportation vehicles is a key measure for the green transformation of the logistics industry. At the same time, it is necessary to accelerate the establishment of carbon emission and carbon footprint accounting standards in the logistics field, promote scientific and technological research and application.

In terms of ESG system construction, logistics enterprises will start from ESG (environmental, social, governance) construction, further deepen the exploration of specific practices of ESG, carry out multiple practices such as green infrastructure investment and construction, green operation, green technology research and development, and product innovation, and actively participate in the construction of a sound ESG evaluation standard system. The government, industry, and society will continue to establish and improve multiple guarantee systems such as ESG regulation, rating, and investment and financing, providing impetus for the green and low-carbon development of the logistics industry.

In terms of enhancing logistics resilience, as China’s economy accelerates its integration into the global market and the pace of “going globally” further accelerates, the role of the logistics industry in ensuring supply and stabilizing the chain will become more significant. Enterprises are continuously strengthening their ability to monitor, warn, prevent, and respond to supply chain security risks, and developing emergency logistics.

In terms of data elements, the new round of technological transformation led by AI big models brings new opportunities for the development of the logistics industry. The role and value of data elements are more prominent, which will effectively empower new operational methods such as supply chain digital platforms, smart warehousing, smart parks, and intelligent driving to flourish.

In terms of “going to sea”, the initiative of jointly building the “Belt and Road” has entered its 11th year, and China’s logistics enterprises are deeply integrated into the international logistics industry system. In the future, China will move towards a new stage of full link business integration and global multi-point layout development. By promoting investment in high-quality logistics assets along the line, realizing the extension of international supply chain services, and building ground business teams, the supply chain, service industry chain, and value chain will be effectively unblocked.

In summary, the logistics industry in China will continue to maintain a good development trend in the future, constantly innovate and develop, and make greater contributions to economic and social development.

1.1.3 Advantageous conditions of project construction

(1) Policy conditions

On December 11, 2023, the General Office of the State Council issued a notice on the Measures to Accelerate the Integrated Development of Domestic and Foreign Trade. Among them, it is proposed to improve logistics convenience. Strengthen cross-border transportation cooperation with overseas ports and encourage shipping companies to expand the scope of cross-border transportation of domestic and foreign goods based on market-oriented principles. Accelerate the development of intermodal transportation between coastal and inland ports, expand the radiation range of domestic and international routes and transportation services in major ports. Support eligible enterprises to carry out domestic and foreign trade container transportation on the same ship, and promote a two-way operation mode of container foreign trade domestic and branch line import and export. Accelerate the construction of cross-border logistics infrastructure and support the construction of global and regional international postal and express delivery hubs in key cities.

(2) Location advantages

Hunchun is located at the geometric center of Northeast Asia and is one of the windows to Northeast Asia and the starting points of the Eurasian Continental Bridge in China. It is the closest point from China to North America and Northern Europe via the Sea of Japan, only 15 kilometers away from the mouth of the Tumen River. Within a 200 kilometer radius centered on Hunchun, there are 10 ports distributed. Hunchun Port is 42 kilometers away from the Port of Pochet in Russia, 63 kilometers away from the Port of Zarubino, and 180 kilometers away from the Port of Vladivostok; Quanhe Port is 48 kilometers away from the port of Rajin and 127 kilometers away from the port of Chongjin in North Korea. The cross-border transportation project of domestic goods from Hunchun to Shanghai and Ningbo has been successfully operated and is increasingly playing an important role. The destination ports have expanded from Shanghai and Ningbo to ports such as Huangpu in Guangdong, Shantou, Quanzhou in Fujian, and Yangpu in Hainan. The types of freight have also expanded from coal to grain, timber, and brass. The second major channel for shipping to the sea in Northeast China is gradually taking shape; Yanji Airport, which is only an hour away from Hunchun, has opened more than 10 international and domestic routes; The Jilin-Hunchun Passenger Dedicated Line was completed in 2014.

(3) Project advantages

In recent years, the bilateral relationship between China and Russia has made remarkable progress, and the cooperation between the two countries in various fields such as economy, culture, and military is deepening. The Far East of Russia has abundant energy resources, such as oil, natural gas, timber, and coal, which are in short supply in China, especially in Jilin Province. The construction of the project is an important carrier for Hunchun City to implement the provincial and state decision-making arrangements and accelerate the construction of a land border port type national logistics hub. After the implementation of this project, it will greatly increase the port throughput, alleviate the energy shortage pressure in Jilin Province and even Northeast China, deeply integrate into the domestic and international dual circulation, and promote the development of Hunchun’s open economy to a higher level.

1.2 Contents and scale of project construction

The total length of the newly built railway double track in the project is about 26 kilometers, with the Chinese side responsible for 8 kilometers and the Russian side responsible for about 18 kilometers. It is mainly responsible for transporting Russia's liquefied natural gas (LNG), liquefied petroleum gas (LPG), and other types of goods. The international logistics hub is planned to cover an area of 300000 square meters, and build a smart logistics storage and transportation station, an automatic sorting centers, an unmanned container station, an epidemic prevention disinfection and sterilization center, a retail trade center and other facilities.

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 4 billion yuan, including the construction investment 3.2 billion 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 2.18579 billion yuan, its profit will be 655.74 million yuan, its investment payback period will be 8.1 years (after the tax, including the construction period of 2 years) and its return on investment will be 16.39%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The implementation of this project is regarded as an important measure to promote regional economic development and has received widespread praise from the government, enterprises, and ordinary citizens. It is widely believed that the successful construction of this project will greatly improve the logistics efficiency of Hunchun and surrounding areas, promote trade within and outside the region, and bring more employment opportunities and economic growth points to the local area. At the same time, the environmental protection measures and sustainable development concept of the project have also been recognized by the public, who believe that it promotes economic development while also taking into account environmental protection and social responsibility.

1.5 Cooperative way

Sole proprietorship, joint venture or cooperation

1.6 What to be invested by the foreign party

Funds

1.7 Construction site of the project

Hunchun City

1.8 Progress of the project

The project proposal has been prepared.

2. Introduction to the Partner

2.1 Basic information

Name: Hunchun People’s Government

Address: 1991 Henan Street, Hunchun City, Yanbian Korean Autonomous Prefecture Jilin Province

2.2 Overview

Hunchun City is located in the lower reaches of Tumen River in the southeast of Jilin Province, covering an area of 5134 square kilometers. It is home to many ethnic groups, such as Han, Korean, Manchu, Hui, Mongolian, and only 15 kilometers away from the Tumen River estuary. It is the “window” of China’s Changchun-Jilin-Tumen pilot area, the “bridgehead” of opening to Northeast Asia, and the strategic pivot of China’s “Belt and Road” opening to the north.

As the forefront of China’s participation in international cooperation and development in the Tumen River region, the country attaches great importance to the development and opening up of Hunchun. In March, 1992, the State Council approved Hunchun as a border city for further opening up to the outside world, and in the same year, approved the establishment of Hunchun Border Economic Cooperation Zone; since 2000, the country has fully implemented the strategy of opening up along the border, and has successively established the export processing zone and Sino-Russian trade zones in Hunchun, forming a unique “three-zone integration” pattern in China; in 2009, the state approved the implementation of the Outline of China’s Tumen River Regional International Cooperation and Development Plan, positioning Hunchun as a window city for the development and opening up of Changchun-Jilin-Tumen; in 2012, the State Council approved the establishment of China Tumen River Region (Hunchun) International Cooperation Demonstration Zone; in 2020, it was approved as Hunchun Marine Economy Development Demonstration Zone.

As one of the first batch of border cities in China to open up to the outside world, Hunchun has numerous national level major open platforms such as border economic cooperation zone, mutual trade zone, comprehensive bonded zone, marine economic development demonstration zone, international cooperation demonstration zone, and cross-border e-commerce comprehensive experimental zone. It enjoys a series of national level major policies such as Tumen River regional cooperative development, mutual trade landing processing pilot, one of the first batch of national logistics hubs in the 14th Five-Year Plan, market procurement trade mode pilot, and second-hand car export business area, and has the advantage of being a pioneer in many fields. At present, Hunchun City is optimizing and enhancing various open platforms, actively cultivating formats such as mutual trade landing processing, bonded logistics, bonded processing, cross-border e-commerce, and market procurement trade, and rapidly transforming unique policy advantages into huge advantages of openness, cooperation, and development.

Hunchun Border Economic Cooperation Zone is located in the southern part of the Hunchun Plain in the lower reaches of the Tumen River, separated from the  urban area of Hunchun by only one river. It is connected to the old urban area through two highway bridges and a railway bridge (under construction). Introduction to the Cooperation Zone: The planned area of the Cooperation Zone is 4 kilometers south of Changlingzi Port; West to Shatuozi Port in kilometers. Hunchun Border Economic Cooperation Zone has a flat terrain, few relocated households, and a large land bearing capacity, mostly around 30 tons/square meter, which is suitable for development and construction. Hunchun City has a humid climate, with warm winters and cool summers. The average annual temperature is around 5℃.

2.3 Contact method

2.3.1 Contact method of the partner

Contact person: Yang Rugang 

Tel: +86-15567675776

2.3.2 Contact method of the city (prefecture) where the project is located

Contact unit: Yanbian Bureau of Commerce

Contact person: Li Jingyu

Tel: +86-13596515933