EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 11

📌Weekly Logistics Highlights:

This week's news highlights advancements in logistics across various regions, such as new investment projects in Shenzhen, the commencement of direct flights in Guangzhou, and significant achievements in agricultural product exports in Myanmar.

 Hong Kong, China

🔹Hong Kong airport’s sea-air logistics park in mainland China handled HK$1.1 billion in cargo in first 2 months of year

The sea-air logistics park the Hong Kong International Airport operates in mainland China handled HK$1.1 billion (US$140.7 million) worth of cargo in the first two months of the year, with the addition of new infrastructure set to further increase the figure. The HK$1.1 billion figure puts the authority on track to meet its goal of handling 1 million tonnes of cargo per year by 2025 and underscores its efforts to solidify the airport’s global position as the leading goods-handling hub.

 Shenzhen, China

🔹 Shenzhen Neptune Logistics intends to invest up to $15 million in establishing a logistics center in Uzbekistan

Shenzhen Neptune Logistics plans to invest between $10 million and $15 million in the construction of a transportation and logistics center in Uzbekistan. The parties are also exploring the possibility of jointly utilizing the logistics centers of “Uztemiryulkonteyner” and organizing container transportation along the multimodal route “China-Kyrgyzstan-Uzbekistan.”

 Guangzhou, China

🔹 China Southern Airlines (1055) will commence direct flights from Guangzhou to Doha, the capital of Qatar, starting from April 22nd

China Southern Airlines (1055) will commence direct flights from Guangzhou to Doha, the capital of Qatar, starting from April 22nd. This new route will provide more convenient options for travelers between China and Qatar. The Guangzhou-Doha route will be operated by Boeing 787 aircraft, with flights scheduled for Mondays, Wednesdays, Fridays, and Sundays. Departing from Guangzhou Baiyun International Airport at 19:20 Beijing time, the flight is expected to arrive at Hamad International Airport in Doha at 22:50 local time, with a total flight time of approximately 8 hours and 30 minutes. The return flights will operate on Mondays, Tuesdays, Thursdays, and Saturdays, departing at 01:15 local time from Doha and arriving in Guangzhou at 13:40 Beijing time, with a total flight time of around 7 hours and 25 minutes. China Southern Airlines' official website, mobile app, and other channels are now accepting flight bookings and offering related services. Additionally, China Southern Airlines will collaborate with Qatar Airways on codeshare cooperation, including the inclusion of the Guangzhou-Doha route in their codeshare agreement.

 Shanghai, China

🔹 Creating integrated demonstration application scenarios for artificial intelligence, metaverse, blockchain, and other technologies supports cross-border logistics.

The Shanghai Municipal Government recently released the "Implementation Plan for Promoting the Enhancement and Expansion of Service Consumption in Shanghai," which encourages companies to increase their research and development efforts in areas such as "5G+," "VR+," "AI+," and "Beidou+" to create integrated demonstration application scenarios for artificial intelligence, metaverse, blockchain, and more. Additionally, it supports the development of online new economy headquarters-based enterprises. Online new economy companies recognized through various headquarters certifications are given support in areas such as talent residence and immigration, cross-border RMB transactions, cross-border logistics, and data circulation in accordance with laws and regulations.

 Tianjin, China

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 Qingdao, China

🔹The Xiong'an New Area aims to become a smart city

Projects worth 56.7 billion yuan were launched in the China-Shanghai Cooperation Organization (SCO) demonstration zone in Qingdao, Shandong Province .The projects cover various areas such as infrastructure, equipment manufacturing, international logistics, trade, and bio-medicine .The demonstration zone aims to enhance economic and trade cooperation among SCO countries and countries along the Belt and Road .China's Xiong'an New Area is being established as a model city with high standards for the coordinated development of the Jing-Jin-Ji economic triangle .The Xiong'an New Area plan includes a long-term master plan extending to 2035 and a vision to build it into a leading international city by 2050 .The city plan for Xiong'an New Area follows a "1+4+26" system, consisting of a single master guideline, four regional and sectorial overall plans, and 26 specialized plans .Xiong'an New Area will serve as an innovation city, attracting institutions and companies in fields such as science and technology, healthcare, finance, and advanced technology industries .The area aims to become an intelligent city, with synchronized planning and construction of physical and digital infrastructure, including IoT, 5G networks, and AI .Green development is a priority in Xiong'an New Area, with a focus on integrating water and city, achieving high percentages of blue and green spaces, and promoting green buildings and renewable energy .The construction planning for Xiong'an New Area has established a solid foundation for large-scale development and construction.

 Vietnam

🔹Vietnam North prime logistics stock set to more than double in 2024

The JLL report reveals that Vietnam's northern region is expected to witness a significant increase in industrial supply, with 322,000 square meters of new space anticipated. Key projects contributing to this growth include Core5 Hung Yen, SLP Park Thuan Thanh II, and Frasers' projects in Yen Phong 2C, Yen Phong Extension, and Yen My Industrial Park.By the end of 2024, the total industrial supply is projected to reach 1.4 million square meters, which is 1.3 times higher than the supply in 2023. This expansion of supply, coupled with stabilizing demand, is making the market more competitive. Landlords are employing various strategies such as diversifying property functions, updating purposes, and offering preferential rentals to attract tenants and capture demand.

 South Korea

🔹Alibaba plans to invest $1.1 bln in South Korea

Alibaba Group (9988.HK), plans to invest $1.1 billion in South Korea over the next three years to build a logistics center and expand businesses, South Korean news agency Yonhap reported on Thursday, citing a business strategy document of the company.The Chinese e-commerce giant plans to spend $200 million this year on building the logistics center and $100 million to help small and mid-sized South Korean firms sell their products overseas, the report said.

 America

🔹U.S. army logistics ship en route to Mediterranean to begin work on Gaza aid port

A U.S. Army logistics support vessel, the General Frank S. Besson, is on its way to the eastern Mediterranean to construct a cargo terminal off the coast of Gaza. The ship departed from Virginia with U.S. Army rapid deployment forces and equipment to build a temporary pier for humanitarian aid ships. This mission was initiated following President Joe Biden's commitment to establish the facility in his State of the Union address. Additionally, the U.S. military, in collaboration with the Royal Jordanian Air Force, has conducted three joint aid airdrops over Northern Gaza, delivering over 11,500 meals and essential supplies to affected civilians. However, the Hamas-run administration of Gaza has criticized the airdrops as inadequate for meeting the urgent needs of the population. Unfortunately, a recent aid drop resulted in the tragic death of five children and injuries to others. The United States denies any harm caused by their own aid drops and confirms the safe landing of all assistance packages. Meanwhile, a shipment of 200 tons of food intended for Gaza remains docked at Larnaca port in Cyprus due to technical difficulties. This shipment, organized by World Central Kitchen and the Spanish charity Open Arms, is awaiting clearance to proceed to an undisclosed location in Gaza. The temporary port being constructed by the United States is not expected to be operational for at least 60 days. 

 Bangladesh

🔹 BGMEA appeals to ADB for Bangladesh logistics boost

Faruque Hassan, the President of BGMEA, met with an ADB delegation to enhance logistics infrastructure in Bangladesh for the garment industry. The goal is to meet trade demands and improve competitiveness. Discussions focused on the RMG sector and the economic implications of Bangladesh's graduation from LDC status. Faruque stressed the need for better infrastructure, especially in ports, to handle increased trade volumes. He emphasized aligning skills with industry trends and requested ADB's support in preparing a skilled workforce. The ADB delegation recognized infrastructure's importance in sustaining manufacturing growth, particularly in the RMG sector, and pledged ongoing support for skills development programs.

🔹 Trillion-dollar investment needed in logistics to turn Bangladesh developed nation

The chamber highlighted that in order for the country to achieve developed nation status by 2041, the economy needs to reach a size of $2.5 trillion, with a per capita income of $12,650 and exports amounting to $350 billion. They emphasized the importance of increasing the investment-to-GDP ratio from 36 percent in 2030 to 40 percent in 2041. The DCCI called for measures to ensure good governance in the financial sector, including the implementation of arbitration laws and assigning responsibility to asset management companies to address the issue of bad loans. They also recommended distributing the remaining portion of the stimulus packages for small businesses under favorable terms, considering the current economic situation. Additionally, the DCCI suggested increasing credit flows to the private sector and introducing premium treasury bonds and infrastructure bonds in the capital market to facilitate long-term financing.

 Myanmar

🔹 Myanmar Achieves $3.28 billion in Agricultural Product Exports

According to statistics from the Ministry of Commerce in Myanmar, agricultural product exports reached $3.28 billion in the fiscal year 2023-24. This represents a decrease of approximately $247.08 million compared to the previous year's figure of $3.53 billion.The main export destinations include China, Singapore, Malaysia, the Philippines, Bangladesh, India, Indonesia, and Sri Lanka.Key export products include agricultural goods, seafood, forestry products, minerals, and CMP finished goods.

🔹 Additional Arrival of Electric Vehicles at Yangon Port

On March 11, 2024, the Myanmar Electric Vehicle Industry Development and Operation Committee reported that MG and MG4 electric vehicles imported by N.P.K Motors Co. Ltd have arrived at Yangon Port. After confirmation of import permits and specifications, they have been granted clearance.
Previously, Chinese electric vehicles were imported into Myanmar through the land border, but due to the closure of the border trade, they are now being imported by sea.Since 2023, over 5,000 electric vehicles have been registered domestically, and import and sales of electric vehicles have been permitted for more than 80 companies. Currently, there are over 30 operating companies in the industry.

🔹 Myanmar Central Bank Suspends Business Licenses of 4 Companies Violating Exchange Regulations

On March 11, 2024, the Central Bank of Myanmar announced the suspension of business licenses for 4 companies that violated foreign exchange management regulations. The suspension will be in effect for 3 months.
The 4 suspended companies are as follows:

1. Thura Nay Tun (Fame Money Changer)
2. Lead Star Money Changer
3. Steber Group Money
4. Asia Shwe Thee Money Changer
   The Central Bank of Myanmar is conducting random on-site inspections to ensure exchange rate stability in the foreign exchange market.
   On September 19, 2023, the Central Bank of Myanmar had already announced the cancellation of licenses for 123 companies that violated official exchange regulations.

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