The Hindu Business Line : Chinese logistics firms plea

The Government in Beijing has been urged to restrict the entry of the foreign companies into the country's domestic logistics market, according to a report in Shipping Gazette.

Some 20 experts from China's domestic industry and related associations, the report suggests quoting Xinhua, have expressed concern over foreign firms' bid for a monopoly hold over the domestic logistics industry at the expense of local small and medium enterprises.

Interestingly, the calls come at a time when DHL is launching domestic airfreight service in China. DHL is believed to have secured 17 domestic airfreight licences, known as CATA (China Air Transport Association) licences, enabling the company to serve as many cities. The launch makes DHL the only international logistics company offering both domestic express and domestic airfreight services in China.

Till now, China's domestic logistics market was served only by state-owned and local companies. However, 80 per cent of the country's international express market continues to be covered by international firms such as DHL, FedEx, UPS and TNT.

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