China Project Logistics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 2.00 % |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
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China Project Logistics Market Analysis
The market for project logistics in China is anticipated to grow at a CAGR of more than 2% during the forecast period.
- It is expected that the short-term rise in oil prices will help the project cargo industry around the world.On the other hand, a long-term reduction in oil prices is anticipated, which will result in less money being invested in new projects.
- China produces a large amount of heavy freight that is sent abroad. China is the world's greatest producer of steel, and its capacity is ten times greater than that of the US. As a result, a country is a popular destination for other countries to import large steel structures.
- Additionally, thanks to the Belt and Road Initiative (BRI), infrastructure spending in China and its neighbors is rising quickly. The project enhances trade promotion and transportation infrastructure.
- Recent research shows that China's approach to international lending has changed. China's investments in infrastructure projects under its Belt and Road Initiative (BRI) have gone down, while Beijing's short- and medium-term help to partner countries, some of which are dealing with rising debt levels, has gone up.
- A report from the Green Finance and Development Centre (GFDC) at Shanghai's Fudan University says that China's investments and contracts in 147 countries added up to USD 28.4 billion in the first half of 2022. This is a 47% increase from the same time last year.Through investments, USD 11.8 billion was made, and through project contracts, USD 16.5 billion was made.
- The risks of moving project cargo are growing, not just in terms of the limit on how much can be moved, but also in terms of the Delay in Start-up (DSU) values at the end, where insurance amounts could reach USD 1 billion.
- When elements like re-fabrication, shipping, charges, lost revenues, and other operational costs are taken into account, a shipment's failure to arrive intact can result in a massive, multi-million dollar Delay in Start-up (DSU) loss. The BRI projects, which require shipping commodities over extremely lengthy inland transits to regions like Southeast Asia, are increasing this risk.
- In China, the ports of Qingdao, Dalian, Guangzhou, and especially Shanghai and Tianjin are typically used to handle project cargo.
- China's zero-COVID-19 policy had a big effect on global supply chains because it shut down many major cities for a long time, which would have been unthinkable before the pandemic.Restrictions associated with COVID-19 significantly reduced China's capacity for production, logistics, and people mobility, as well as its corporate and consumer trust.
- China is a major source of many consumer goods, parts for making things, and raw materials. The loss of its industrial and logistics capabilities has made global inflation worse by causing a persistent shortage of supplies in global markets that are all connected.
China Project Logistics Market Trends
Wind power is expected to propel the demand for project logistics services through the forecast period
- One of the project logistics market's important growth segments is the shipment of wind power. Wind power is becoming a mature business around the world, so more and bigger wind turbines are being built to make electricity more efficiently.
- Wind energy equipment is very big and heavy, with some parts weighing more than 300 tons. It takes a lot of skill to move it safely and securely. Transportation to far-flung and offshore sites is occasionally necessary.
- As more countries use wind energy, the pressure is on the manufacturers to get the equipment to the countries faster.In response to the growing need to ship wind power components, some shipbuilders are focusing on making special ships that are made to carry wind energy equipment.
- China installed 55.8 Gigawatts on its own in 2021, breaking its previous record of 52 Gigawatts set in 2020. This is an increase of 19.4%. The total installed capacity of wind turbines in China is currently 344 gigawatts.
- In spite of the global pandemic and growing economic pressure, the offshore wind power business has continued to grow, according to a recent report from the shipping research institute Clarksons. The volume of production climbed by 177% year over year to more than 3,400 units, setting a record.
- By the end of 2021, the total amount of offshore wind power produced around the world will be 50.5 GW. This is a big jump of 58% from the previous year. Offshore wind power is becoming more important as one of the main ways for the energy system to become "carbon neutral." This is because there are fewer land and wind resources on land that can be used to make energy.
- According to the global installed capacity of offshore wind turbines, they can help save almost 9,000 tons of carbon emissions from the production of power each year.
- The Global Wind Energy Council (GWEC) says that installed offshore wind generating capacity will grow by more than 235 GW between 2021 and 2030, at a rate of about 23.6% per year on average.The total installed capacity will surpass 270 GW by 2030.
- All nations have made significant investment plans for the growth of offshore wind power. China and Europe are among them, and they are the major factors driving the growth of the world market. In the following ten years, it is predicted that the newly built capacity will reach 58 GW and 102 GW, respectively.
Increase in Automobile is driving the market
- Shipbuilders and people who follow the industry say that China's seagoing car carrier fleet will get bigger and that it will get a bigger share of the market in the years to come because of the country's rising auto exports and the growing demand for electric vehicles around the world.
- The global market for vehicle carriers has seen a strong expansion this year and will start to recover in 2021. The first eight months saw a total of 43 new car carriers traded globally, the most since 2008, according to the Beijing-based China Association of the National Shipbuilding Industry, or CANSI.
- With an average ship size of 5,300 spaces, the global fleet of 756 car carriers contains nearly 4 million spaces for individual vehicles. China presently has a fleet of 51 car carriers, nine of which are large car carriers with 7,600 parking spaces each, and two of which are large car carriers with 7,800 parking spaces each, both of which are slated for delivery in 2024 and 2025, respectively.
- Before 2021, domestic trade dominated China's automobile carrier fleet the most. However, as new ships ordered from Chinese shipowners and automakers are delivered over the following several years, the fleet is expected to increase, according to Liu Hao, a manager at the Longkou manufacturing facility of Yantai, Shandong province-based CIMC Raffles Offshore Ltd. According to Liu, the company has received the most orders in its history, totaling 12, for 12 car carriers. It has until 2026 to complete the production plan necessary to complete these orders.
According to Liu, the company will need to buy 300 tons of steel plates every day to maintain production levels next year since more car carriers will be created, increasing its monthly need from 6,000 metric tons this year to 8,000 tons each month in 2023 as a result.
China Project Logistics Industry Overview
The market for project logistics in China is fragmented because there are so many small and medium-sized companies in the business. Some of the well-known businesses include Chirey Group, Sinotrans, and COSCO Shipping Logistics Co., Ltd. Domestic businesses dominate the market. To meet the rising demand and exports of heavy cargo from the nation, businesses must broaden their networks. Project-critical equipment has highly strict criteria for the creation of a cargo transport strategy, the deployment of transport trucks, the coordination of trucks, ships, and floating cranes, as well as time management. This equipment must be delivered securely within shorter periods. As a result, when handling project cargo, businesses must make the right partner choices.
China Project Logistics Market Leaders
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COSCO Shipping Logistics Co., Ltd.
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Chirey Group
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Sinotrans (HK) Logistics Ltd.
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CJ Smart Cargo
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Tiba Group
*Disclaimer: Major Players sorted in no particular order
China Project Logistics Market News
- January 2023: Maersk and the administrative body of the Shanghai Free Trade Zone signed a land grant agreement late in December 2022 for the Lin-gang new area. This is the first green and smart flagship logistics center from Maersk to open in China. It has low or very low greenhouse gas emissions. The project will begin in the third quarter of 2024 and cost 174 million US dollars.
- January 2022: Members of the Ocean Alliance, CMA CGM, COSCO Shipping Lines, OOCL, and Evergreen have signed the Ocean Alliance Day 7 Product, which launches in January 2023. It has been announced that 26 dual-fuel, LNG-powered CMA CGM ships would be assigned to Ocean Alliance. The new product will feature a total of 353 containerships, of which 125 will be operated by the CMA CGM Group, 40 services, and an estimated total annual capacity of around 22.4 million TEUs. The launch of the new service will coincide with the entrance into force of the IMO's Carbon Intensity Indicator (CII) rating scheme, which has come under a lot of fire recently for not being fit for purpose.
China Project Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 Increasing Usage of Renewable Energies Boosts Opportunities for Project Logistics Companies
4.2.1.2 Growth of E-commerce
4.2.2 Restraints
4.2.2.1 Cost - Intensive
4.2.2.2 Lack of Skilled Labor
4.2.3 Opportunities
4.2.3.1 Belt and Road Initiative will creates more opportunities for the companies
4.3 Government Regulations and Initiatives
4.4 Technological Trends
4.5 Spotlight - Belt and Road Initiative (BRI) and Investments
4.6 Elaboration on risks involved in project cargo movement
4.7 Impact of COVID-19 on the Market
4.8 Value Chain / Supply Chain Analysis
4.9 Industry Attractiveness- Porter's Five Forces Analysis
4.9.1 Threat of New Entrants
4.9.2 Bargaining Power of Buyers/Consumers
4.9.3 Bargaining Power of Suppliers
4.9.4 Threat of Substitute Products
4.9.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Transportation
5.1.2 Forwarding
5.1.3 Warehousing
5.1.4 Other Value-added Services
5.2 By End-user
5.2.1 Oil and Gas, Petrochemical
5.2.2 Mining and Quarrying
5.2.3 Energy and Power
5.2.4 Construction
5.2.5 Manufacturing
5.2.6 Other End-Users (Aerospace & Defense, Automotive, etc.)
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration, Major Players)
6.2 Company Profiles (including Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements)
6.2.1 Logistics Companies
6.2.1.1 COSCO Shipping Logistics Co., Ltd.
6.2.1.2 Chirey Group
6.2.1.3 Translink International Logistics Group
6.2.1.4 Kerry Logistics Network Limited
6.2.1.5 Trans Global Projects Group (TGP)
6.2.1.6 Sinotrans (HK) Logistics Ltd.
6.2.1.7 CJ Smart Cargo
6.2.1.8 Tiba Group
6.2.1.9 Mitsubishi Logistics Corporation
6.2.1.10 InterMax Logistics Solution Limited
6.2.1.11 Wangfoong Transportation Ltd.
6.2.1.12 Global Star Logistics (China) Co., Ltd.
6.2.1.13 Sunshine Int'l Logistics Co.,ltd.
6.2.1.14 Kuehne + Nagel
6.2.1.15 Agility Logistics Pvt. Ltd.
6.2.2 Engineering/EPC Companies
6.2.2.1 China Gezhouba Group Corporation International Engineering Company
6.2.2.2 Guangdong Yuedian Group
6.2.2.3 China National Chemical Engineering Group
6.2.2.4 China Railway Construction Corporation
6.2.2.5 China Civil Engineering Construction Corporation*
6.2.3 Other companies (Key Information/Overview)
6.2.3.1 Broekman Logistics, Rhenus Logistics, Trans Global Projects Group (TGP), S.F.Systems(Group)Ltd., Ziegler Group, Dextrans Worldwide Group, GEFCO S.A., Keyun Group, Dolphin Logistcis Co. Ltd., TPL Project Stock Company, Shanghai Beetle Supply Chain Management Company Limited*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
8.1 GDP Distribution, by Activity and Region
8.2 Insights on Capital Flows
8.3 Economic Statistics - Transport and Storage Sector, Contribution to Economy
8.4 External Trade Statistics - Export and Import, by Product and by destination
8.5 Insights on Major upcoming projects in China
China Project Logistics Industry Segmentation
Project logistics refers to the logistics management for a specific undertaking. This covers the organization, management, and oversight of transportation. Transporting cargo securely and safely to a construction site for a particular project is the focus of project logistics.
The research includes a thorough background analysis of the China project logistics industry, a market overview, market size estimates for important segments, emerging trends by segments, and market dynamics. The Project Logistics Market is segmented by Service (Transportation, Forwarding, Warehousing, and Other value-added services), and by End Users (Oil and Gas, Petrochemical, Mining and Quarrying, Energy and Power, Construction, Manufacturing, and Other End-Users). The report offers Market size and forecasts for China Project Logistics Market in value (USD) for all the above segments.
| By Service | |
| Transportation | |
| Forwarding | |
| Warehousing | |
| Other Value-added Services |
| By End-user | |
| Oil and Gas, Petrochemical | |
| Mining and Quarrying | |
| Energy and Power | |
| Construction | |
| Manufacturing | |
| Other End-Users (Aerospace & Defense, Automotive, etc.) |
China Project Logistics Market Research FAQs
What is the current China Project Logistics Market size?
The China Project Logistics Market is projected to register a CAGR of greater than 2% during the forecast period (2024-2029)
Who are the key players in China Project Logistics Market?
COSCO Shipping Logistics Co., Ltd., Chirey Group, Sinotrans (HK) Logistics Ltd., CJ Smart Cargo and Tiba Group are the major companies operating in the China Project Logistics Market.
What years does this China Project Logistics Market cover?
The report covers the China Project Logistics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China Project Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Project Logistics Industry Report
Statistics for the 2024 China Project Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Project Logistics analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
