CHINA PROJECT LOGISTICS MARKET - GROWTH, TRENDS, AND FORECAST (2019 - 2024)

The market is segmented by Service (Transportation, Forwarding, Warehousing, and Other value-added services), and by End User (Oil and Gas, Petrochemical, Mining and Quarrying, Energy and Power, Construction, Manufacturing, and Other End-Users).

Market Snapshot

china_project_marksumm
Study Period:

2015-2024

Base Year:

2018

CAGR:

>2%

Key Players:

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Market Overview

The market for Project logistics in China is anticipated to grow at a CAGR of more than 2% during the forecast period (2019-2024).

  • The project cargo market across the globe is expected to be boosted by rise in oil prices through the short-term. However, the oil prices are expected to decrease over the long-term which leads to decline in new project investments.
  • A lot of heavy cargo manufactured in China is exported overseas. China is the largest steel producer of world and has large steelmaking capacity, 10 times that of US. This makes the country favorable destination for other countries in the world to import large steel structures.
  • Moreover, with the Belt and Road Initiative (BRI), the investments in infrastructure is increasing rapidly in China as well as in neighboring nations. The initiative improves the transport infrastructure and promotes the trade.
  • As a part of BRI, the country also provides financing for overseas projects related to oil, gas, coal, and renewables. This can boost the exports of heavy cargo from China to other countries boosting the project logistics market. It is estimated that investments in solar and wind power in 38 countries in BRI to reach more than USD 640 billion between 2020 and 2030.
  • The project cargo movement is witnessing larger values of risks, not just on the conveyance limit but also the Delay in Start-up (DSU) values at the back end which can see sums insured of as high as USD 1 billion.
  • Failure of a shipment to arrive intact can result into a huge multi-million dollar Delay in Start-up (DSU) loss when factors such as re-fabrication, shipping, expenses, lost profits and other operational costs are considered. This risk is being compounded by BRI projects which involves moving cargo to places such as Southeast Asia which involves very long inland transits.
  • The project cargo in China is usually handled in Qingdao, Dalian, Guangzhou and, especially, Shanghai and Tianjin ports.

Scope of the Report

A complete background analysis of China project logistics market, market overview, market size estimation for key segments and emerging trends by segments, and market dynamics are covered in the report.

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.)

Report scope can be customized per your requirements. Click here.

Key Market Trends

Wind power is expected to propel the demand for project logistics services through the forecast period

Wind power shipments are emerging as one of the key growth sectors in project logistics market. Wind power is becoming a mature industry across the globe and a large number of wind turbines are being installed at greater scales to generate energy efficiently. Wind energy equipment is very large and heavy, with pieces in excess of 300 tons and requires in-depth experience to transport them safely and securely. Sometimes, it requires transportation to remote and offshore locations. As the countries are accelerating the wind power capacity, the manufacturers are under pressure to move the equipment faster. With the increasing demand for transport of wind power components, some shipbuilders are focusing on building special-purpose ships tailored to hauling wind energy equipment.

The renewable power capacity of China has increased by 12% in 2018 reaching 728 Giga Watts (GW), which accounts for more than 38% of the total installed power capacity. As the country announced phasing out of subsidies for new onshore wind power projects at the start of 2021, the new wind installations are expected to slow down. However, the installations continued to increase. The country added more than 20 GW of new wind power capacity to its grid in 2018. The wind power curtailment rate is expected to decrease and the newly installed capacity for wind power is expected to continue to grow steadily over the next few years. It was also observed that there was a decrease in equipment and construction costs. The wind project costs declined by 20% between 2012 and 2017.

Meanwhile, the construction of the offshore wind facilities in the country is also accelerating. In 2018, the Chinese government has approved 24 offshore wind projects off the Jiangsu Province. The province already has 56 wind farms in operation with a total capacity of 8.6 GW. Based on data from various industrial sources, it is also expected that China is expected to overtake UK as biggest offshore wind market in the world in the next four to five years. Also, China is planning a 6-gigawatt subsidy-free wind complex to help power the 2022 Winter Olympic Games.

Apart from domestic installations, China also exports wind energy equipment. The country is home to five out of top 10 wind turbine manufacturers in the world. One example is Goldwind, one of the world’s largest turbine makers. At the end of 2016, it reached 2 GW in international contracts and delivered more than 700 units of wind turbine generators across six continents and 20 countries, including the US, Panama, Turkey, Chile, Australia and Thailand.

china_project_wind

To understand key trends, Download Sample Report

Demand for Multipurpose/Heavy-Lift Fleet is growing

The rise in demand for project cargo leads to rise in demand for multipurpose/heavy-lift fleet. As per data from industrial sources, it was observed that the demand for multipurpose vessel (MPV) fleet across the globe is expected to grow on average by more than 1% through the forecast period with high growth in the short-term that is expected to slow down after 2020 due to competition from general cargo. The projected growth in project cargo is expected to strengthen the freight rates for the multipurpose and heavy-lift shipping sector over the short-term. The older and smaller vessels are being replaced with new vessels of higher tonnage and lift capacity.

As of 2019, China’s Cosco Shipping Specialized Carriers is the world’s second largest multipurpose operator by deadweight with 1,821,000 tons and 67 vessels. BBC Chartering stood as the largest operator by the end of 2018 with 1,844,000 tons and 144 vessels. This indicates that the Chinese fleet has a large number of big vessels with an average deadweight of 27,200 tons.

china_project_fleet

Competitive Landscape

The project logistics market in China is fragmented due to a large number of small and medium players involved in project cargo logistics business. Chirey Group, COSCO SHIPPING Logistics Co., Ltd., Sinotrans are some of the prominent companies. The market is dominated by domestic companies. It is necessary for the companies to expand their network in order to serve the growing demand and exports of heavy cargo from the country. The project-critical equipment is needed to be transported safely in tighter timeframes and has very tough requirements on the formulation of a cargo transport scheme, as well as the deployment of transport trucks, the coordination of trucks, ships, and floating cranes and time management. Therefore, it is necessary for the companies to select the right partners while handling project cargo.

Major Players

  1. COSCO Shipping Logistics Co., Ltd.
  2. Chirey Group
  3. Sinotrans (HK) Logistics Ltd.
  4. CJ Smart Cargo
  5. Tiba Group

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Technological Trends

    7. 4.7 Insights on Steel Industry in China

    8. 4.8 Brief on Metal Fabrication and Heavy Machinery Manufacturing in China

    9. 4.9 Spotlight - Belt and Road Initiative (BRI) and Investments

    10. 4.10 Elaboration on risks involved in project cargo movement

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Service

      1. 5.1.1 Transportation

      2. 5.1.2 Forwarding

      3. 5.1.3 Warehousing

      4. 5.1.4 Other Value-added Services

    2. 5.2 By End-user

      1. 5.2.1 Oil and Gas, Petrochemical

      2. 5.2.2 Mining and Quarrying

      3. 5.2.3 Energy and Power

      4. 5.2.4 Construction

      5. 5.2.5 Manufacturing

      6. 5.2.6 Other End-Users (Aerospace & Defense, Automotive, etc.)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration, Major Players)

    2. 6.2 Company Profiles (including Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements)

      1. 6.2.1 Logistics Companies

        1. 6.2.1.1 COSCO Shipping Logistics Co., Ltd.

        2. 6.2.1.2 Chirey Group

        3. 6.2.1.3 Translink International Logistics Group

        4. 6.2.1.4 Kerry Logistics Network Limited

        5. 6.2.1.5 Trans Global Projects Group (TGP)

        6. 6.2.1.6 Sinotrans (HK) Logistics Ltd.

        7. 6.2.1.7 CJ Smart Cargo

        8. 6.2.1.8 Tiba Group

        9. 6.2.1.9 Mitsubishi Logistics Corporation

        10. 6.2.1.10 InterMax Logistics Solution Limited

        11. 6.2.1.11 Wangfoong Transportation Ltd.

        12. 6.2.1.12 Global Star Logistics (China) Co., Ltd.

        13. 6.2.1.13 Sunshine Int'l Logistics Co.,ltd.

        14. 6.2.1.14 Kuehne + Nagel

        15. 6.2.1.15 Agility Logistics Pvt. Ltd.

      2. 6.2.2 Engineering/EPC Companies

        1. 6.2.2.1 China Gezhouba Group Corporation International Engineering Company

        2. 6.2.2.2 Guangdong Yuedian Group

        3. 6.2.2.3 China National Chemical Engineering Group

        4. 6.2.2.4 China Railway Construction Corporation

        5. 6.2.2.5 China Civil Engineering Construction Corporation*

      3. 6.2.3 Other companies (Key Information/Overview)

        1. 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. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPENDIX

    1. 8.1 GDP Distribution, by Activity and Region

    2. 8.2 Insights on Capital Flows

    3. 8.3 Economic Statistics - Transport and Storage Sector, Contribution to Economy

    4. 8.4 External Trade Statistics - Export and Import, by Product and by destination

    5. 8.5 Insights on Major upcoming projects in China

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