Logistics hub lifts trade and economy

The Ningxia Hui autonomous region is planning to build its international express distribution center into the largest such facility in Northwest China, a move that will further open up the local market.

The center, which started operations last July, enables overseas parcels to be sent directly to local recipients, rather than bypassing Ningxia for customs clearance. It also distributes international deliveries across the country.

In the first seven months of this year, the full-service center imported and distributed more than 200,000 express delivery items. The number is estimated to grow to 500,000 by the end of this year, as new sorting equipment is being installed in the center.

As facilities gradually improve, the center's annual handling capacity is expected to grow to 5 million items by 2020, the operating officer of the center told Shanghai-based ThePaper.cn.

"In the past, international express mails from Dubai to Ningxia had to be sent to other cities, like Shenzhen ... and Beijing, for customs clearance. Now, the autonomous region, leveraging the local distribution center and international airlines, has improved delivery efficiency and lowered companies' operating costs," said the officer, surnamed Deng.

According to Deng, the majority of international deliveries, so far, come from about 20 countries and regions, such as the United Arab Emirates, the United States, the Netherlands, Germany and Italy. Items include clothing, shoes, cosmetics, milk powder and other daily necessities, about half of which were distributed to East China and South China.

Several leading delivery services companies, such as SF Express Co Ltd and Express Mail Service, have set up workstations in the center. Deng said he hoped Ningxia would be able to attract more international airlines, which will facilitate the express mail business.

The center is located in Yinchuan Comprehensive Free Trade Zone, an important force to expand Ningxia's trade and boost economic development. The zone was established in September 2012 with the approval of the State Council.

In 2017, trade volume of the zone amounted to $2.67 billion, accounting for 47 percent of the total of Ningxia, according to Hao Liuhu, deputy director of Ningxia's development and reform commission.

The zone has made great efforts to build an international logistics distribution zone and a modern service industry innovative zone, according to Hao.

Hao said more than 3 billion yuan ($438 million) has been invested in the zone and a comprehensive industrial pattern gradually formed, mainly including bonded processing and logistics of gold jewelry, modern textiles, wine and other products.

As the service sector becomes a priority of the next round of opening-up, Ningxia, together with other provinces and cities in China's middle and west areas, is seizing opportunities brought by the international service transfer.

He Zhengrong, director of the local commerce bureau, told the Beijing-based New Business Weekly that the best choice for Ningxia's future development is to boost the aviation industry, in a bid to meet urgent demand.

He noted that the Yangtze River Delta region has achieved rapid and solid growth by seizing the opportunity of the global transfer of labor-intensive industries.