Logistics property market takes off in China as focus shifts to consumption

With the rapid growth of e-commerce on the mainland, demand for warehouses is rising. Photo: SCMP Pictures

The logistics property market is taking off like a rocket on the mainland, and has the potential to grow to US$2.5 trillion by 2029.

A spike in the number of deals is expected this year as investors bet on consumption-led growth.

Wednesday, 19 March, 2014, 3:29am

Private capital to continue to play a big role this year

Another block of apartments goes up in Beijing, where property prices continue to rise. Photo: Reuters

The private real estate capital markets experienced stronger momentum than their public counterparts last year, owing to the limited windows of opportunity for equity issuance and relatively low pricing offered by the public markets.

5 Mar 2014 - 3:32am

Heavily indebted China Railway Corp expected to raise freight rates

The mainland's rail transport volume is the largest in the world, accounting for 25 per cent. Its annual rail freight volume reached 3.9 billion tonnes in 2012. Photo: Reuters

China Railway Corporation (CRC) is expected to raise freight rates early this year to relieve its massive debt burden and speed up market-oriented reform in the industry, which it monopolises.

11 Jan 2014 - 5:00am

High, stable yields in logistics sector draw investors

Grade-A warehouses in good locations in Shanghai carry price tags of 4,500 yuan to over 6,500 yuan per square metre. Photo: Bloomberg

Logistic properties - which include mainly grade-A warehouse facilities - currently offer high and stable rental yields as growing demand is outstripping supply, a Colliers International report says.

22 May 2013 - 3:51am

Hong Kong faces mainland China challenge as ports expand

Shenzhen port may also lose business as shipping terminals elsewhere in Guangdong scale up and offer lower rates to attract customers. Photo: Bloomberg

Guangdong's plan to spend billions of yuan to create a network of ports, railways and waterways will pose a competitive threat to Hong Kong. But it may benefit Hong Kong exporters as a strike at the city's port enters its fifth week, say industry players.

29 Apr 2013 - 4:11am 1 comment

Softening market in Europe clouds industry prospects

Hactl's terminal at Chek Lap Kok. The firm handled 246,912 tonnes of cargo last month, 2.6 per cent less than a year ago. Photo: David Wong

Hong Kong Air Cargo Terminals Ltd saw a 2.6 per cent dip in tonnage last month, ending a growth streak that started in June last year. The firm moved 246,912 tonnes of cargo, compared with 253,632 tonnes in March last year. For the first quarter, it still saw growth of 1.7 per cent.

11 Apr 2013 - 3:15am

Onshoring trend is overhyped, say shipping chiefs

Outsourcing to China has slowed in recent years. Photo: Reuters

The shift of manufacturing and outsourcing to China, which started after the mainland joined the World Trade Organisation in 2001, has probably ended.

But the scale of the move back to production in Europe and the Americas has been exaggerated, a senior shipping executive says.

10 Apr 2013 - 3:57am

Smugglers cash in big on 'British' tobacco trafficked through Hong Kong

Criminal syndicates are reaping huge profits by smuggling mainland tobacco through Hong Kong into Britain and selling it as counterfeit British brand. Photo: Reuters

Criminal syndicates are reaping huge profits by smuggling mainland tobacco through Hong Kong into Britain, where it is sold at a 5,000 per cent mark-up, a government source says.

8 Apr 2013 - 10:33am

Wheelock looks ahead to strong growth

Wheelock looks ahead to strong growth

With a strong pipeline of projects, property and logistics conglomerate Wheelock and Company expects to see substantial business growth in the next five years.

28 Mar 2013 - 6:31am

Coca-Cola accused of illegal mapping in China

Coca-Cola is co-operating with Chinese authorities on allegations that it illegally mapped part of a southwestern province. Photo: Reuters

US soft drinks giant Coca-Cola is “co-operating fully” with Chinese authorities on allegations that it illegally mapped part of a southwestern province as part of its distribution operations, it said on Wednesday.

13 Mar 2013 - 9:28pm

Warehouse demand remains strong in Japan, says GLP trust

Tokyo will see the largest annual expansion in warehouse demand this year since 2008, according to data compiled by GLP. Photo: EPA

Japanese real estate investment trust GLP J-REIT, which has risen more than 20 per cent since its initial public offering in December in Tokyo, expects demand for warehouses in Japan to remain strong with a shortage of modern distribution centres.

27 Feb 2013 - 5:04am

Labour shortage clips the wings of Hong Kong's logistics hub

Government needs to encourage young people to take up technical or engineering education and help semi-skilled workers further upgrade their skills. Photo: Perry Wong

In his maiden policy address, Chief Executive Leung Chun-ying stressed the importance of Hong Kong's logistics industry, one of the four traditional economic pillars that have made the city a successful business centre.

29 Jan 2013 - 1:42am

Logistics sector has to act now to meet new regulations: John Tsang

John Tsang Chun-wah

The EU and the US are planning tighter regulations for checks on incoming cargoes at departing airports.

28 Jan 2013 - 5:41am

Chinese strategists make right moves for growth

Trains run on the Nanjing-Shanghai railway route in Nanjing, China. Photo: AP

Chinese officials reacted with caution to the country's lower growth rate. Its gross domestic product growth of "only" 7.8 per cent last year compares well of course to those of advanced economies (Germany, for example, grew 0.7 per cent last year), but Chinese officials worry about the impact on productive capacity across the nation.

22 Jan 2013 - 2:03am

Tighter US security measures cause little impact on air cargo industry

The airfreight industry says it may face greater pressure if the US extends its new security measures to cargo carriers. Photo: David Wong

Tougher security measures introduced last month for some US-bound cargo at Hong Kong International Airport have had little impact on airfreight operations so far, industry experts said.

3 Jan 2013 - 4:55am