Chinese express sector to triple in the next 10 years, says postal chief

CHINA's express delivery statement will triple its business volume in the next 10 years after noting that it has grown 32 per cent a year over the last decade, according to China State Post Bureau director Ma Shangjun.

Mr Ma told a recent national postal business administration meeting that if the sector manages to maintain double-digit growth for the next eight years, then tripling its business volume will be well within reach.

Statistics from international consulting firms, quoted by Xinhua, show that if the express sector takes up 0.17 per cent of GDP or less, the market tends disorganised. When the percentage is between 0.17 per cent and 0.6 per cent, the market will be more orderly and enjoy rapid growth.

In 2012. China handled a total of 5.7 billion express parcels with a strong year-on-year growth of 55 per cent. Revenue of the industry increased 40 per cent to CNY106 billion (US$17.05 billion).

The China State Post Bureau has set a target where postal business revenue doubles the sum in 2010 by year 2020, and its percentage in GDP will rise above 0.6 per cent, while express business revenue will triple 2010's figure. In 2013, China aims to raise the express package volume to eight billion with a growth of 40 per cent and revenue to CNY140 billion with a growth of 33 per cent.

In recent years, China's express business environment continued to improve. The government has introduced series of policies to support and facilitate development of the industry.

But labour and capital still remain the main driver of the express sector rather than technology. Many of the express companies are small and weak on innovation and in competitive strength.

Transport Minister Yang Chuantang said China plans to enhance the automation and informatisation level of express industry to improve service quality.