1 Introduction to the Project

1.1 Project background

1.1.1 Product introduction

A modern logistics industry park refers to a place where multiple logistics facilities and different types of logistics enterprises are concentrated in space in areas where logistics operations are concentrated, with a large scale and multiple service functions. It is a gathering point for logistics enterprises, usually located at the junction of several transportation modes such as highways, railways, waterways, etc., to improve logistics efficiency, reduce logistics costs, and promote industrial development.

The construction of a modern logistics industry park in Huinan Economic Development Zone not only solves the problem of insufficient logistics and warehousing facilities in Huinan, but also effectively improves the commodity reserve capacity and transit transportation capacity, which will play a positive role in promoting the urbanization process of Huinan County.

1.1.2 Market prospect

(1) Logistics industry chain

Logistics is the entire process of planning, implementing, and managing raw materials, semi-finished products, finished products, or related information from the place of origin to the place of consumption at the lowest cost to meet customer needs. Logistics is a system that controls raw materials, finished products, finished goods, and information to achieve clear organizational goals. Modern logistics is a product of economic globalization and an important service industry. The world’s modern logistics industry is steadily growing, with Europe, the United States, and Japan being important logistics bases worldwide.

The upstream of the logistics industry mainly refers to industries that provide infrastructure and equipment for the development of the logistics industry, including road infrastructure construction industry, warehousing industry, and logistics equipment manufacturing industry; the midstream includes logistics enterprises that provide transportation, warehousing, and logistics management services, while the downstream mainly refers to industries or individuals who have a demand for warehousing, transportation, and other services.

(2) The current situation of China’s logistics industry

With the increase of commodity circulation activities, the development and improvement of manufacturing industry, and the continuous introduction of national support policies for the logistics industry, the overall scale of China’s logistics industry has been continuously expanding. In recent years, the total amount of social logistics in the country has increased significantly.

In 2023, the total amount of social logistics in China was 352.4 trillion yuan, a year-on-year increase of 1.38%. Among them, the total logistics volume of industrial products was 312.6 trillion yuan, a year-on-year increase of 4.6%; the total logistics volume of imported goods was 18 trillion yuan, a year-on-year increase of 13%; the total logistics volume of units and residential goods was 13 trillion yuan, a year-on-year increase of 8.2%; the total logistics volume of agricultural products was 5.3 trillion yuan, a year-on-year increase of 4.1%; the total logistics volume of renewable resources was 3.5 trillion yuan, a year-on-year increase of 17.4%. From January to August, 2024, the total amount of social logistics in China was 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; in August, the growth rate was 4.7%, a decrease of 0.6 percentage points from July.

The construction of the logistics system was steadily advancing in 2021, adapting to changes in market logistics demand, maintaining rapid growth in logistics supply services, and supporting the improvement of industrial chain and supply chain resilience. The total revenue of the logistics industry for the whole year was 11.9 trillion yuan, a year-on-year increase of 13.33%. The total revenue of the logistics industry in 2022 was 12.7 trillion yuan, a year-on-year increase of 6.72%. The total revenue of the logistics industry in 2023 is 13.2 trillion yuan, a year-on-year increase of 3.94%. In the first half of 2024, the total revenue of the logistics industry was 6.3 trillion yuan, a year-on-year increase of 3.7%. From the perspective of logistics scale, the logistics market is entering an accelerated transformation period as the driving force shifts with the growth of logistics demand.

(3) Market analysis of the modern logistics industry

Modern logistics refers to a new type of integrated management that integrates logistics activities such as information, transportation, warehousing, inventory, loading and unloading, and packaging. Its task is to minimize the total cost of logistics and provide customers with the best service possible. The modern logistics industry is generated under the background of continuous innovation and application of big data technology and Internet technology. Compared with traditional logistics industry, the connotation of modern logistics industry has undergone significant changes, gradually shifting from traditional logistics industry to modern service industry supported by modern information technology.

In 2022, the scale of modern logistics enterprises in China grew against the trend, and their market share will steadily expand. By the end of the year, there have been over 8600 A-level logistics enterprises nationwide. A-level logistics enterprises in professional fields such as supply chain services, cold chain logistics, online freight, and pledge supervision are accelerating their growth and playing a demonstrative and driving role in segmented markets. The total revenue of China’s top 50 logistics companies is nearly 2 trillion yuan, and the entry threshold has increased by 2 billion yuan compared to the previous year. Among them, several enterprises have a revenue scale exceeding 100 billion yuan. A group of leading enterprises are striving to catch up with and surpass modern logistics companies that have international competitiveness. Large logistics enterprises are increasing their strategic adjustments, going public for financing, and mergers and acquisitions to develop towards scale, networking, and intensification. Many small and medium-sized logistics enterprises rely on large enterprise groups to participate in division of labor and cooperation; Some focus on the direction of “specialization, refinement, uniqueness, and novelty”, seeking distinctive markets; some also switch business or close down.

The modern logistics system, as the artery of economic development, will continue to play a key role in promoting high-quality economic development. With the continuous advancement of technology, the logistics industry will further integrate advanced technologies such as artificial intelligence, big data, and the Internet of Things to achieve intelligent and digital transformation. In the process of transitioning from labor-intensive to technology and capital intensive, logistics enterprises will continuously improve service quality and efficiency, reduce logistics costs, and provide solid support for the development of various industries.

Huinan Economic Development Zone is a provincial-level development zone and a modern industrial new city. With the development of the development zone economy, there is an urgent need to build a modern logistics industry park to improve logistics operation efficiency, and the project construction has broad prospects.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

In February, 2021, the State Council issued the National Standardization Development Outline, proposing to promote the standardization and branding construction of the service industry, improve service industry standards, and focus on strengthening standardization in areas such as food cold chain, modern logistics, e-commerce, item coding, wholesale and retail, and real estate services.

In December, 2022, the State Council released the 14th Five-Year Plan for the Construction of a Modern Circulation System, which clearly stated the need to strengthen the interconnection and information sharing of logistics infrastructure, and build a multi-level logistics service system that supports modern circulation. Accelerate the construction of infrastructure such as logistics parks, logistics centers, and distribution centers around industrial clusters and consumer centers, connect with national logistics hubs, and improve the integrated and intensive logistics organization and service capabilities. Improve urban distribution facilities, vigorously develop joint distribution, and enhance distribution efficiency. Relying on urban and rural network resources such as commerce, supply and marketing, transportation, and postal express delivery, we will improve the logistics and distribution system of county and rural express delivery, and enhance the terminal network service capabilities. Promote the construction of green logistics hubs and parks, and guide enterprises to innovate and provide green and low-carbon logistics services.

In March, 2023, the State Council issued the Outline for Building a Quality Strong Country, proposing to actively develop multimodal transport, smart logistics, and supply chain logistics, improve the quality of cold chain logistics services, optimize international logistics channels, and enhance the convenience of port clearance. Improve modern logistics, production control, information data and other service capabilities, and enhance the advantages of industrial chain integration.

In March, 2023, the National Development and Reform Commission agreed to establish a demonstration zone for industrial transfer in southwestern Jilin, focusing on enhancing industrial transfer capacity, optimizing business environment, deepening open cooperation, effectively undertaking domestic and foreign industrial transfer, promoting industrial transformation and upgrading in the process of undertaking, and striving to build the demonstration zone into a characteristic manufacturing base in Northeast China, a green and low-carbon transformation pilot zone, a new highland for regional cooperation and development, and an important agricultural and special product processing base in the country. The demonstration zone covers three cities: Siping, Liaoyuan, and Tonghua.

(2) Resource advantages

Huinan has abundant natural resources, including mineral and agricultural resources, which provide a solid foundation for the development of related industries.

(3) Industrial advantages

Huinan Economic Development Zone has planned four functional areas, namely Comprehensive Industrial Development Area, Residential and Living Supporting Area, Commercial and Logistics Development Area, and Office and Industrial Innovation Area. In addition, Huinan Economic Development Zone has also planned four industrial bases, namely, Small and Medium-sized Enterprise Incubation Base, Northeast Medical Packaging Industry Base, Northeast Steel Product Deep Processing Industry Base, and Northeast Agricultural Product Deep Processing Industry Base. Huinan Economic Development Zone has built an important platform for undertaking projects and gathering industries. The agricultural products and industrial enterprises settling in the development zone provide support for the logistics park in terms of production capacity.

(4) Location advantages

Huinan has obvious location advantages and convenient transportation conditions. Located in the southeastern part of Jilin Province, the northern part of Tonghua City, and the western foothills of Changbai Mountain, it is an important passage and gateway for entering and exiting Changbai Mountain. It is 200 kilometers away from Changchun Longjia Airport, 187 kilometers away from Changbai Mountain Airport, and 94 kilometers away from Tonghua Airport. The Shenyang-Jilin Railway, Changchun-Changbai Mountain Expressway, Huinan-Baishan Expressway, No. G504 National Highway, and Huinan-Sanhe and Yongji-Xinbin, two provincial-level highways pass through the area. Shenyang-Jilin Expressway and Jilin-Shuangliao Expressway are adjacent to the county and serve as transportation hubs for entering Changbai Mountain in the south, Changchun in the north, and Meihekou New Area in the west.

(5) Talent advantages

At present, Tonghua City has 3 national key secondary vocational schools, 3 provincial key secondary vocational schools, and all county-level vocational education centers have passed the provincial key school acceptance and entered the top 100 schools in the province. It is the first region in the province where all county-level vocational education centers have entered the provincial key school list. In recent years, through scientific layout, continuous promotion of vocational education structure adjustment and resource integration, exploration of new paths for diversified education, continuous improvement of modern vocational education network system construction, the local characteristics of vocational education have begun to form, and the ability to serve economic and social development has gradually improved.

Tonghua Municipal Government has signed technology strategic cooperation agreements with research units of provincial universities such as Northeast Normal University, Jilin Agricultural University, Changchun Institute of Chemical Engineering, Chinese Academy of Sciences, and Tonghua Normal University, providing technological support for the development of enterprises. Tonghua City continues to provide assistance to enterprises in talent cultivation and other aspects, vigorously implementing the “Ten Thousand Students Revitalizing Enterprises Plan” and “Thousand Students Returning Home Plan”, and continuously attracting college graduates for enterprises.

1.2 Contents and scale of project construction

The total area of the project is 10000 square meters, with a total construction area of 11500 square meters, including 7500 square meters of office building area; the building area of the packaging workshop is 3000 square meters; the warehouse has a building area of 1000 square meters. There is a newly built green area of 2500 square meters, a road area of 1500 square meters, and a parking lot area of 500 square meters. Purchase 79 sets of equipment including lightweight conveyor belts, dryers, packaging machines, and box trucks.

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 100 million yuan, including the construction investment of 90 million yuan and current funds of 10 million yuan.

1.3.2 Capital raising

Self-raising by the enterprise

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 40 million yuan, its profit will be 15 million yuan, its investment payback period will be 8.7 years (after the tax, including the construction period of 2 years) and its return on investment will be 15.0%.

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

1.4.2 Social evaluation

The project construction conforms to the national macroeconomic and industrial policies, and is in line with the overall layout of Huinan Economic Development Zone. After the implementation of the project, it will further improve the logistics and distribution service capabilities in Huinan, promote the circulation of goods, shorten the circulation distance, achieve high-frequency and high-efficiency operation, enhance the market competitiveness of enterprises, and improve their economic and social benefits.

1.5 Cooperative way

Joint venture or cooperation, and other methods can be discussed face-to-face.

1.6 What to be invested by the foreign party

Funds or others

1.7 Construction site of the project

Huinan Economic Development Zone

1.8 Progress of the project

The project proposal has been prepared.

2 Introduction to the Partner

2.1 Basic information

Name: Management Committee of Jilin Huinan Economic Development Zone

Address: Junhong Road, Chaoyang Town, Huinan County

2.2 Overview

Huinan Economic Development Zone is located in the southeast of Jilin Province and the northeast of Tonghua City. It borders Jingyu County to the east, Liuhe County to the south, Meihekou City to the west, Panshi City across the water to the north, and Huadian City to the northeast.In 2012, Huinan Economic Development Zone was promoted to a provincial-level development zone with a planned area of 9.5 square kilometers, approved by the provincial government.

The key industries supported and developed by Huinan Economic Development Zone include the medical packaging industry, steel product deep processing industry, volcanic slag deep processing industry, agricultural product processing industry, medical industry, metallurgical industry, and machinery industry. In 2022, the regional gross domestic product reached 530 million yuan, the main business income of industrial enterprises above the designated size was 1.707 billion yuan, and the actual use of domestic capital was 905 million yuan.

Huinan Economic Development Zone firmly grasps the “bull’s nose” of project construction, fully implements the guarantee mechanism of “one project, one leader, one special team, one secretary”, benchmarks and closely monitors the project progress schedule and roadmap, and arranges full-time staff to serve enterprise project construction. It fully promotes the spirit of “shop assistants”, strengthens interdepartmental coordination and coordination to address issues in project construction, improves the efficiency and effectiveness of project problem-solving, and ensures that the project can be recruited and successfully executed.

2.3 Contact method

2.3.1 Contact method of the partner

Contact unit: Management Committee of Jilin Huinan Economic Development Zone

Contact person: Chen Yuanjun

Tel: +86-13604352000    

E-mail: hnjjkfq1033@163.com

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

Contact unit: Tonghua Bureau of Commerce

Contact person: Wang Liangchen

Tel: +86-435-3199017 

    +86-18643036783

E-mail: thsswjtck@126.com