Shanghai to introduce measures to create world class express business

SHANGHAI plans to introduce a series of measures to stimulate the development of the parcel delivery business to a level where it can compete with the best in the world, reports Xinhua.

By 2015, Shanghai will improve express service efficiency and quality, and make sure the industry's revenue grow more than 25 per cent a year, said the news agency.

The city also aims to develop one or two domestic express companies into internationally competitive ones, with daily parcel volume of more than three million pieces and an annual revenue of CNY10 billion (US$1.57 billion), said the report.

Shanghai will also encourage express companies to set up large distribution facilities by providing them with preferences in land use, and support domestic express companies to partner with airlines and airports on air express services, schedules and the use of airport property. The city will also support large express companies to expand into the field of e-commerce and exhibition logistics.

Shanghai's parcel business was growing at a rate of somewhere between 35 and 50 per cent from 2006 to 2010. In 2011, Shanghai's express business revenue rose to CNY12.2 billion, 16 per cent of China's total, with an annual parcel volume of 409 million pieces.