Development of the logistics industry in the Pearl River Delta (Guangdong-Hong Kong-Macao Greater Bay Area)

Development of the logistics industry in the Pearl River Delta (Guangdong-Hong Kong-Macao Greater Bay Area)

As the Guangdong-Hong Kong-Macao Greater Bay Area gradually develops into a world-class urban agglomeration and economic center, its logistics system is also constantly innovating and making breakthroughs.

The launch of a series of new logistics channels, models and technologies has made the "water, land, railway and air" logistics three-dimensional channels smoother, which not only improves the logistics efficiency in the region, but also connects industrial "corridors" and integrates the Greater Bay Area. Collaborative development is making strides forward.

Smooth three-dimensional logistics channels, the Greater Bay Area demonstrates vigorous vitality. 

In recent years, the "hard connectivity" of infrastructure in the Guangdong-Hong Kong-Macao Greater Bay Area has continued to accelerate and deepen, and the construction of transportation, energy, information and other infrastructure has advanced with each passing day, providing strong support for regional economic development. 

At the same time, "soft connectivity" focusing on the connection of rules and mechanisms is also continuing to broaden and deepen, and cooperation between Guangdong, Hong Kong and Macao in trade, investment, finance, technology and other fields continues to make new breakthroughs.

The Guangdong-Hong Kong-Macao Greater Bay Area is the fourth largest bay area in the world. This area consists of 56,000 square kilometers of land and a population of more than 80 million. With its amazing economic vitality and openness, it has become the focus of attention in China and even the world.

In 2022, the GDP of the Greater Bay Area will exceed 13 trillion yuan. With less than 1% of the country's land area and 5% of the total population, it will create 11% of the country's total economic output. This achievement is enough to demonstrate its role in my country's economic development. important position.

As the Guangdong-Hong Kong-Macao Greater Bay Area gradually develops into a world-class urban agglomeration and economic center, its logistics system is also constantly innovating and making breakthroughs. The introduction of a series of new logistics channels, models and technologies has not only improved the logistics in the region Efficiency also strengthens the connection between the Greater Bay Area and the rest of the world.

First, the continued growth of airport logistics shows the great potential and vitality of the development of the Greater Bay Area.

The airport linkage between Dongguan and Hong Kong has opened a new door for improving logistics efficiency in the Greater Bay Area. Through the "Dongguan-Hong Kong International Airport Center" project, a sea-air combined transport model with pre-emptive cross-border security inspections has been realized. This not only effectively reduces the company's comprehensive operating costs, but also greatly shortens the transit time of goods.

This innovative logistics model provides more convenient and efficient logistics services for the manufacturing and trading industries in the Greater Bay Area, helping to enhance the international competitiveness of the entire region.

As the air cargo hub of the Greater Bay Area, Guangzhou Baiyun Airport will have a cargo and mail throughput of more than 2 million tons in 2023. It currently has more than 60 cargo routes, and its route network covers more than 230 navigation points around the world.

The newly opened international freight routes not only strengthen Guangzhou's economic and trade ties with other parts of the world, but also promote the industrial clusters in Guangzhou and the Pearl River Delta region to better integrate into the global industrial and supply chains. 

The launch of the Guangzhou Air Logistics Public Information Platform has improved the informatization level of airport and port logistics, simplified the inspection and release process of export air freight interline cargo, and improved the facilitation level of cross-border trade.

As an international aviation hub, Hong Kong International Airport's cargo and mail throughput will also increase slightly by 3% in 2023 to 4.33 million tons. With the completion of the three-runway project, the passenger and cargo capacity of Hong Kong International Airport will be greatly improved, further consolidating its status as an international aviation hub and providing more solid support for the development of air transport in the Greater Bay Area.

In addition, the cargo and mail throughput of Shenzhen Airport and Zhuhai Airport are also growing steadily. Shenzhen Airport's growth is driven by its increasing air cargo capacity and optimized route network. Although the current cargo and mail throughput of Zhuhai Airport is relatively small, the acceleration of its reconstruction and expansion project indicates that Zhuhai Airport has huge development potential in the air transport field in the future.

Second, the world-class port group with differentiated development in the Greater Bay Area is growing day by day. From the perspective of cargo throughput, the strength of the Greater Bay Area port cluster cannot be underestimated. Guangzhou Port estimates that the container throughput in 2023 will reach 23.946 million TEUs, and the cargo throughput will be approximately 553 million tons.

Shenzhen Port also performed well, with cargo throughput exceeding 280 million tons and heavy container throughput exceeding 18.7 million TEUs. Zhuhai Port and Foshan Port are also growing steadily, with cargo throughput expected to exceed 140 million tons and reach 102 million tons respectively in 2023.

Behind these figures are the unremitting efforts made by the ports in the Greater Bay Area in terms of infrastructure construction, route network expansion, and logistics efficiency improvement. It is worth mentioning that the port cluster in the Greater Bay Area has formed a differentiated competitive landscape during its development.

With its status as an international financial, trade and shipping center, Hong Kong Port plays a pivotal role in the global shipping network; Shenzhen Port has become one of the busiest container ports in the world with its efficient logistics system and advanced port management experience;

Guangzhou Port has become the largest comprehensive port in South China with its vast hinterland resources and diversified cargo structure. This differentiated development pattern enables the port group in the Greater Bay Area to respond more flexibly and maintain competitive advantages in the face of changes in the global economic and trade situation. In addition, the advancement of the "Greater Bay Area Combination Port" reform has injected new vitality into the development of maritime transport in the Greater Bay Area.

This reform breaks the spatial barriers between traditional ports, treats the ports in the Guangdong-Hong Kong-Macao Greater Bay Area as the same port, and achieves resource sharing and coordinated development among ports in different cities. Through the customs clearance model of "one customs declaration, one inspection, and one release", 

the efficiency of the flow of goods between terminals has been greatly improved, thereby further improving the facilitated flow of resource elements in the Guangdong-Hong Kong-Macao Greater Bay Area and promoting the stability and quality of foreign trade.

According to statistics, the "Greater Bay Area Combination Port" has opened a total of 36 lines, covering nine mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area and extending to western Guangdong. In 2023, the import and export cargo volume will reach 600,000 TEUs.

This reform result not only enhances the overall competitiveness of the Greater Bay Area ports, but also provides a more convenient and efficient logistics channel for Bay Area enterprises to participate in global trade. Third, the efficient and convenient land transportation system has become an important support for promoting the development of the Greater Bay Area.

In terms of railway logistics, the railway freight channels in the Greater Bay Area are constantly improving. Looking back on the past ten years, the China-Europe freight train corridor in the Guangdong-Hong Kong-Macao Greater Bay Area has experienced leapfrog development from scratch to from line to network. 

Today, cities such as Guangzhou, Shenzhen, and Dongguan have opened multiple international freight train routes to Europe, Central Asia, South Asia, and Southeast Asia, forming a logistics network covering many countries and regions around the world.

In 2023, the number of international freight trains operating in Guangdong exceeded the 1,000 mark for the first time, with a year-on-year increase of more than 30%. The import and export cargo structure transported by China-Europe freight trains in the Greater Bay Area is also constantly being optimized. 

From early labor-intensive products such as daily necessities and clothing to today's high value-added goods such as home appliances, communication equipment, electronic products, and new energy vehicles, railway transportation in the Greater Bay Area is gradually developing in a high-end, intelligent, and green direction. .

In addition, railway transportation in the Greater Bay Area has also played a positive role in promoting coordinated regional development. On December 12, 2023, the railway freight channel from the Guangdong-Hong Kong-Macao Greater Bay Area to the Yangtze River Delta region resumed operation, providing more convenient logistics support for the coordinated development of the two major economic regions.

This not only strengthens the trade links between the Greater Bay Area and Europe, Central Asia, Southeast Asia and other places, but also provides more diversified logistics options for enterprises in the region.

Through these railway freight channels, companies in the Greater Bay Area can more easily transport products to inland markets, while also providing companies in inland areas with convenient access to international markets.

In terms of road transportation, the Guangdong-Hong Kong-Macao Greater Bay Area has built an A-shaped transportation network around the Pearl River Estuary with Guangzhou-Zhongshan-Zhuhai, Guangzhou-Dongguan-Shenzhen and the cross-Pearl River Estuary channel as its backbone.

This layout makes the cities in the Greater Bay Area more closely connected and provides convenient access for road transportation.

And the accelerated construction of key projects such as expressways, intercity railways and the cross-Pearl River Estuary Channel will further optimize the Greater Bay Area’s transportation network and enhance highway transportation capacity. Data show that the number of vehicles entering and exiting through the Hong Kong-Zhuhai-Macao Bridge Zhuhai Highway Port in 2023 will double year-on-year to 3.2 million.

At the same time, the Greater Bay Area has strengthened the construction of cross-border highway networks.

The Greater Bay Area has opened a number of direct TIR international cross-border road freight routes. The 7,000-kilometer cross-border road transportation time can be shortened to about two weeks, further improving the logistics network in the Greater Bay Area, not only improving logistics efficiency, but also reducing costs. 

Logistics costs provide a more efficient and convenient cross-border export channel for the flow of goods between the Greater Bay Area and Central Asia.

Stimulating new momentum in the industry, cross-border logistics and low-altitude logistics have become the starting point. Driven by the dual drive of globalization and e-commerce, the Guangdong-Hong Kong-Macao Greater Bay Area has rapidly emerged as a new highland for cross-border e-commerce logistics.

Jones Lang LaSalle's report clearly states that in 2023, the net absorption of the non-bonded logistics market in the five Greater Bay Area cities of Guangzhou, Shenzhen, Dongguan, Foshan and Huizhou will be approximately 2.2 million square meters.

Behind this huge volume, cross-border e-commerce contributes most of the transaction volume. This not only proves the market share of cross-border e-commerce in the logistics field, but also highlights its core role in promoting the development of the Greater Bay Area logistics market.

Guangzhou’s cross-border e-commerce import and export data is eye-catching. In 2023, Guangzhou Baiyun Airport Customs has supervised more than 350 million import and export cross-border e-commerce commodities, a year-on-year increase of more than 52%. Guangzhou's cross-border e-commerce import volume has also increased by nearly 1.5 times. 

This growth rate far exceeds traditional trade and fully demonstrates the strong development momentum of cross-border e-commerce in Guangzhou and even the entire Greater Bay Area.

Guangzhou, a long-established commercial city, has become a gathering place for cross-border e-commerce companies.

In addition to a series of locally cultivated high-quality cross-border e-commerce companies such as Vipshop, Onion, and Zhuozhi, Guangzhou has also attracted leading international platforms such as SHEIN, TikTok, and Temu.

In particular, Temu, which sends an average of 1.6 million packages from China every day, has 12 warehouses in Guangzhou, accounting for nearly half of its 30 warehouses nationwide. This number is enough to illustrate Guangzhou's key position in Temu's global layout.

In addition, SHEIN is also increasing investment in Guangzhou and plans to build a Bay Area supply chain headquarters in Zengcheng, which will add new impetus to Guangzhou's cross-border e-commerce logistics.

The lens turns to Shenzhen, a city of innovation that also performs well in the field of cross-border e-commerce. In 2023, Shenzhen's cross-border e-commerce import and export volume will reach 326.53 billion yuan, a year-on-year increase of 74.4%.

Shenzhen has more than 150,000 cross-border e-commerce export companies, which account for half of Chinese sellers on platforms such as Alibaba International Station, AliExpress, Lazada, and eBay.

The substantial growth of Shenzhen's cross-border e-commerce import and export volume is not only due to its large seller group and market size, but also inseparable from its complete logistics system and customs supervision sites.

At present, Shenzhen also has 16 various freight ports and 11 customs supervision sites and bonded areas for cross-border e-commerce business. These have laid a solid foundation for the vigorous development of cross-border e-commerce in Shenzhen. 

The vigorous development of cross-border e-commerce logistics in the Greater Bay Area is inseparable from the collaborative cooperation and complementary advantages of various cities.

As the dual cores of the Greater Bay Area, Guangzhou and Shenzhen are jointly promoting the development of cross-border e-commerce logistics in the Greater Bay Area to a higher level through their respective characteristics and advantages. 

In addition, cities such as Dongguan, Foshan and Huizhou are also actively integrating into this system and jointly building a new pattern of cross-border e-commerce logistics in the Greater Bay Area.

Looking to the future, cross-border e-commerce logistics in the Greater Bay Area will continue to maintain strong development momentum. With the continuous innovation of technology and the continuous optimization of policies, the Greater Bay Area is expected to become a leading region in global cross-border e-commerce logistics. 

At the same time, with the arrival of more international giants and the rise of local companies, the cross-border e-commerce ecosystem in the Greater Bay Area will become more colorful.

The Central Economic Work Conference held not long ago proposed "creating several strategic emerging industries such as biomanufacturing, commercial aerospace, and low-altitude economy." The low-altitude economy has become an emerging economic form that needs careful planning in 2024. Among them, the pilot and promotion of low-altitude logistics have been as follows. It has sprung up in many cities.

Relying on its unique airspace advantages, agglomeration of market factors and strong policy support, the Greater Bay Area has shown unprecedented vitality and potential in the field of low-altitude logistics, and is gradually becoming a highlight in the logistics system of the Guangdong-Hong Kong-Macao Greater Bay Area. The Guangdong-Hong Kong-Macao Greater Bay Area has unique airspace conditions.

Since 2010, the Pearl River Delta has become a pioneer in the reform of classified management of low-altitude airspace. The reform of low-altitude airspace management has provided broad development space for cities such as Guangzhou, Shenzhen, and Zhuhai.

In 2023, Shenzhen will open 77 new drone routes, with a total of 156 routes opened, and more than 600,000 cargo-carrying drone flights will be completed. These reforms and achievements not only optimize the allocation of airspace resources, but also lay a solid foundation for the development of low-altitude logistics.

In the field of low-altitude logistics, companies in the Greater Bay Area have actively explored innovative applications and achieved remarkable results.

In recent years, in order to promote the implementation of low-altitude logistics projects and promote the innovative development of low-altitude economy, Guangzhou has also taken a series of positive measures to vigorously develop drone (vehicle) logistics, and is committed to building a comprehensive coverage of Guangzhou based on unmanned systems. "hub + grid + terminal" three-level logistics distribution network.

Looking to the future, the development prospects of low-altitude logistics in the Greater Bay Area are broad.

At present, the low-altitude logistics network in the Greater Bay Area is gradually being built, and more efficient, convenient, and green logistics and distribution services will be achieved in the future. This will not only promote the transformation and upgrading of the logistics industry in the Greater Bay Area, but also inject new vitality into the sustainable development of the regional economy.

And, with the continuous innovation of technology and the in-depth expansion of applications, low-altitude logistics is expected to become a highlight in the logistics system of the Greater Bay Area and a new engine of economic growth.

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