Logistics Project at Humen Port, Municipal of Dongguan, Guangdong

Famed as the world’s factory, Dongguan has a world-renowned manufacturing industry and is the economic heart of Guangdong. The municipal is a leading city in terms of economic strength. However, the logistics industry in Dongguan, as compared to its vibrant manufacturing industry, is far from being developed. In the ever competitive market where modern logistics is the locomotive of economic development, and considering the fact that logistics industry has become the “third most profitable industry”, the municipal government of Dongguan decided to establish a modern logistics system, hoping to bring vitality to the local economic growth and industrial upgrade.

The Humen Port is located at the center of the urban development axis of Guangzhou, Shenzhen, and Hong Kong. It is also the center of the Pearl River Delta economic circle, locating in the estuary of the Dong Jiang River and Pearl River and with the Shiziyang Waterway in the west. With abundant supply of goods and a strong export-oriented processing industry, the municipal’s has generated over 5 million TEU of container throughput in 2004, putting the municipal at an advantageous position to develop port logistics.

To Dongguan, developing the bonded logistics industry in Humen Port relates to the future economic competitiveness of the municipal, and is an important strategic deployment in its sustainable development. To realize a transition from a "manufacturing base" to a "modern manufacturing center", and considering the fact that the existing bonded logistics industry cannot meet the needs of market, local government decided apply for the construction of a national Type B bonded centre, so as to promote modern logistics and further improve local environment for investment and international trade. With this requirement, the municipal government began to identify a project planning expert so that the expected outcome of the Humen Port development can be achieved.

Project Challenges

Negative impact on local economic development due to the lag of development of logistics business behind production industry

Project Summary

After careful selection, Dongguan decided to invite experienced logistics project planning expert, BPS Global Group, to establish strategic planning for the logistics system of Humen Port in October 2004. Upon confirmation of cooperation in this project, the specialist team that represent BPS Global Group to implement the project collected first hand information from the 29 adjacent towns, 7 neighbouring ports, 34 logistics service providers, 111 logistics service users and various government departments. They then conducted in-depth analysis to master the market situation of Dongguan and its surrounding areas, as well as the existing requirements in socio-economic development, urban and environmental overall planning. The overall framework of Humen Port’s logistics system was established, including the positioning, strategy and physical mode of the logistics development. Solid system construction, and planning proposals of major logistics park in the project were formed.

The outcomes of the actual preliminary study and strategic planning were eventually approved by the panel of judges formed by the State’s top notch logistics experts. After receiving the approval, BPS Global Group began the next stage of work, which is to execute feasibility analysis and functionality planning that is focused on the Dongguan Bonded Logistics Centre (B TYPE) located at the back of the main port area of Humen Port. In this round of planning, Dongguan Bonded Logistics Centre (B TYPE) and the construction of its associated facilities will be able to provide enterprises in the area with port clearance services, bonded logistics service, international distribution and logistics services, global procurement and logistics service, container logistics service, as well as value-added service in bonded logistics, etc.

As a result, the Dongguan Municipal Bonded Logistics Centre (B TYPE) located in Humen, received official approval from General Administration of Customs, Ministry of Finance, State Administration of Taxation, State Administration of Foreign Exchange last December, becoming one of the first 17 bonded logistics centres in the country. It has also become the first logistics park in Dongguan that enjoys State-level special policy.