Zhejiang Low Carbon Logistics: Difficulties And Realization Ways

This paper concentrates on troubles and realisation ways of Zhejiang third-party low C logistics. It chiefly includes four parts: debut, the definition and features, advantages and troubles, realisation ways. First, it presents the low C logistics developing environment. Second, it introduces a definition and features on third-party low C logistics. Third, it analyzes the geographic and industrial economic system advantages for developing Zhejiang third-party low C logistics, particularly discusses troubles in six facets, they are imbalanced H2O transit, deficient development of rail transit, humdrum services and inefficient direction, extended manner of concern theoretical accounts, less net incomes and absent logistics endowments. Though there are jobs, there are bright chances existed. Finally, it suggests realisation ways from the facet of transit, service, direction, mechanical mechanization and macroscopic angle.

Global heating, glacier thaw and natural catastrophe go oning make people concern about the clime and environment jobs. Last twelvemonth Copenhagen UN Climate Change Conference came to shut. Meantime, the thought of “ low-carbon economic system ” became more popular, it refers to every facet in our day-to-day life. Logisticss industry, as heavy C emanations and the 3rd net income beginning, has duty to develop the low C logistics. Zhejiang state is the first logistics building pilot state in China, has already devoted itself to the modern logistics industry development, and has to give experiences to other states. So it is more necessary to understand the low C logistics from the strategic tallness.

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This paper divides three parts below to happen out the kernel, features, advantages and jobs, chances and realisation ways of Zhejiang third-party low C logistics.

The definition and features


Low C logistics is from low C economic system, which originated from Britain. Low C economic system refers to the lowest C emanations and lowest cost in ecological environment and societal economic system. Nowadays it is defined more loosely as follow: Low C economic system is a win-win state of affairs of economic development. It is directed by sustainable development construct, through technological invention and system reform to do energy ingestion and C emanation every bit low as possible. Logisticss, as the 3rd net income beginning, is highly of import during the low C economic. [ 1 ] At present, there is no understanding of low C logistics definition. The writer defines it as follow: in the logistics operation and direction procedure, directed by the construct of environmentally friendly and recognize sustainable development by invention.

About the third-party logistics ( 3PLs ) , the Wikipedia gives the definition: A house provides sorts of logistics services. It is different from the logistics section in maker. It is a professional logistics manner. For illustration, Federal Express, DHL, and TNT are the celebrated 3PLs in the universe.

In position of definitions mentioned supra, this paper gives the definition of “ the third-party low C logistics ” as follow: it is an endeavor, independent of the providing party and demanding party, supplying the logistics service. It follows sustainable development construct, go through technological invention and system reform, do energy ingestion and C emanation every bit low as possible. Recognize sustainable development in the logistics operation and direction procedure.


Based on the definition above, this paper gives the features of the third-party low C logistics:

1. Low C transit: transit is a cardinal nexus in 3PLs, and it is besides the heaviest C emanations procedure. So the most of import feature in low C logistics is low C transit.

2. Efficient direction: low C logistics is non merely executing in the transit, it besides can be found in logistics direction. Like lading fleets direction, it can cut down the empty cargo waggon rate ; transit path direction, it can cut down the stat mis ; warehouse direction and so on. Efficient direction is the of import mark and confidence for low C logistics.

3. Salvaging resources: the development of 3PLs should alter from extended manner which depends on the resources ingestion to intensive manner which depends on the quality and efficiency.

4. Technological invention: present new engineerings through the technological inventions ; speed up the class of industry information and mechanical mechanization. Promote the efficiency of logistics operation and raise the utilization rate of production factors on the proficient side.

Advantages and troubles of zhejiang third-party low C logistics

Geographic Advantages And Industrial Economy Advantages For Developing Low Carbon Logistics In Zhejiang Province.

1. Geographic advantages in Zhejiang state: there are four logistic countries in China-Around Bohai Area, Yangtze River Delta Area, Around Taiwan Strait Area and Pearl River Delta Area. Zhejiang state lies in Yangtze River Delta Area and has two nucleus cities-Hangzhou and Ningbo. As is known to all, transportation is one of the best low C transits. There are plenty first-class deep shoreline resources and port resources, the lengths of the deep shoreline which is deeper than 10m are 333 kilometres. It contains Hangzhou port, Ningbo-Zhoushan port, Wenzhou port, Taizhou port and Jiaxing port. Its place is really of import to link international sea-lane and national subdivision lines. Besides, major metropoliss in Zhejiang state have been connected in four hours circle of transit, it reduces costs aggressively on transit. Highways, air, railroads and seaports have been constituted a modern circle of transit.

2. Industrial economic system advantages: There are 139 specialised markets which gross revenues are over a billion RMB, 15 specialized markets which gross revenues are over 10 billion and 30 industrial bunchs which end product values are over 10 billion. They are the strongest support to develop logistics in Zhejiang state. They are besides good to the 3PLs to roll up their wealth to recognize low C logistics.

Troubles In 3PLs In Zhejiang Province.

Even if it has some advantages in developing the third-party low C logistics, it besides has some troubles.

1. Although the larboard resources are rich, they are developed imbalanced. Water transit has its topographic point in long-distance, high-volume, non-urgent transportation, it is besides viewed as one of the lowest C emanation and efficient transit. Port throughput is an of import index reflects accomplishment of production and direction. The line graph of port throughput between 2002 and 2008 in some major ports in Zhejiang state as follow ( informations beginning: Zhejiang Statistical Yearbook 2009 ) :

As we can see from the figure above, the entire port throughput in Zhejiang state keeps turning as clip goes on, particularly in Ningbo-Zhoushan port. However, the growing rate of port throughput in other four ports is comparatively low, the exposure shows the incline of curves which present other four ports is nearing nothing. It tells us the development of the major ports in Zhejiang state is imbalanced. The great development of Ningbo-Zhoushan port and the advantages of transit cyberspace do non lend to other seaports ‘ development.

2. The rail is failed to develop sufficiently. Recently, the authorities has focused on constructing electric railroad and increasing the velocity of the train, but these actions do non do the rail transit develop good. The line graph in figure 2 about the ratio of railroad cargo volume to the entire cargo volume in Zhejiang shows the rail developed insufficiently. ( Data beginning: Zhejiang Statistical Yearbook 2009 )

It shows the per centum of the rail cargo volume is rather little, and it has a tendency toward a decrease. The decreased tendency does non match to the increased entire cargo volume. So the development of rail transit is non really good.

3. 3PLs in Zhejiang state started subsequently, its services are humdrum and the direction is inefficient. 3PLs in Zhejiang state started subsequently, until 2002 it was registered the first logistics firm-Hangzhou Bafang Logistics CO. , LTD. As a consequence, Zhejiang 3PLs has small experience, and besides has a hapless foundation, all these grounds restrict development of this industry. In add-on, its services are humdrum. Almost all the companies focus on the direct services, like transit, storage and metropolis distribution. Other indirect services like packaging, processing and allotment trade goods are still in the phase of researching. For other high-ranking services-logistics information services, control of stock list cost, design of logistics and so on-are non even mentioned. Besides, the direction of storage installations is inefficient. The depots in Zhejiang state are crude, most of them belong to the makers, and their use rates are low. But to some advanced professional warehouses, the direction and authorities ‘s supportive are absent.

4. Most of the concern theoretical accounts are extended manner, over ingestion of resources and low in mechanization. This concern theoretical account is bad for low C development. Presents, all worldwide industries are reassigning the extended manner to intensive manner, but Zhejiang logistics industry is already behind. It is built professional communications web in USA. It besides ever uses tray, forklift truck and Crane during the operation. In Japan they use robot or mechanical manus to present some particular goods. They have automatic goods screening devices and particular cargo vehicles in common. [ 2 ] But in Zhejiang 3PLs, these sorts of devices are rare. These houses chiefly depend on consume work force and material resources. The agencies for communicating and transit are rearward. Although there are kind of EDI, PDS, and EPR in the companies, but see the cost and net income, they are non cosmopolitan, and their use rate is low. So its end product is non evidently.

5. There are plentifulness of 3PLs in Zhejiang state, but most of them are little houses, and the net incomes are even less. It is non good for low C transformed. Harmonizing to the information from Zhejiang Province Second Economic Survey in 2010, the figure of the enterprise legal individuals in transit industry, warehousing industry and mail concern which are related to logistics industry is 9575. The entire operating net incomes are i??17.74 billion, and the norm of operating net incomes are merely i??18.527 million. Contrast to Dertsche Post World Net ( DPWN ) which is a celebrated logistics company in German, its net income in 2009 reached a‚¬644 million. Another celebrated logistics company DHL, its net income in 2009 reached i??2.37 billion. The information of transit industry, warehousing industry and mail concern from Zhejiang Province Second Economic Survey in 2010 as follow: Contrast to other logistics good developed state, the operating net income of the metropolis — Shanghai is i??9.55billion at the same clip, about the half of the whole Zhejiang state, the operating net income of Guangdong is i??36.881billion, about one clip more than it is in Zhejiang state. We can see that in Zhejiang state, the logistics houses are smaller, the net incomes are less and the nucleus endeavors are absent. So it is a much harder to transform low C.

6. Lack of the logistics endowments is another serious job, it is bad for developing low C logistics. Logisticss industry is a new industry, it needs many endowments. In Zhejiang state, the forces preparation started subsequently, until 2000 it started a major in logistics in Zhejiang Technology Institute of Economy. Now the endowment spread has reached 200,000. The vice-president of Hangzhou Logistics Association ZHAO Cheng-feng said, the senior endowment like logistics main inspector and logistics director is fewer, the figure is under 500. Even if we offer the high wage, it still can non work out this job. Lack of the logistics endowments is bad for invention, so act upon the low C development.

Besides these five troubles above, the logistics developed quickly in Shanghai and Jiangsu state increased the force per unit area in Zhejiang state. Particularly in Shanghai, the sound economic and international image make certain to vie the market portion with Zhejiang state.

Zhejiang third-party Low C logistics: chances and realisation ways


Although there are some troubles in developing Zhejiang third-party low C logistics, we can analyse bright chances existed.

1. It is the inevitable tendency of developing 3PLs. From the angle of market demand: in China the self-support logistics accounted for about 60~70 per centum of the whole logistics market. The sum outgo which is related to the logistics is i??1900 billion, accounted for 20 per centum of GDP. So the 3PLs is really possible. More informations is as follow ( informations beginning: Zhejiang Statistical Yearbook 2009 ) :

Besides Zhejiang state is really celebrated for its fabrication industry. Some of trade goods are big. And its import and export are really active ; export operation is covering 700 states and parts. Water transit is good at high-volume transit ; besides it has its topographic point in long-distance oversea agents. So Zhejiang 3PLs is heavy demand.

From the angle of the cost, choose the 3PLs is more sensible. Harmonizing to some statistics from important organisation in USA, if the company chooses 3PLs, the cost of logistics will diminish 11.8 % , logistics assets will decreased 24.6 % , turnover clip will turn 7.1days to 3.9 yearss and the entire stock list will cut down 8.2 % . Because of the stronger buying power and lower monetary value in 3PLs, the company will take 3PLs to cut down cost aggressively.

2. Low C logistics besides has a bright position. From the angle of the features in post-financial-crisis epoch, because of the arrear of stock list and increasing transit cost, the benefits of many logistics company become less and less, some of them even spend more than earn. It calls for 3rd party low C logistics service in exigency. Use low C transit to cover with lifting energy monetary values. Low C logistics non merely diminish the energy ingestion, but besides cut down the C emanation and the transit cost ; the efficient direction and modern communicating engineerings raise the utilization rate of vehicles and warehousing equipments. All these advantages can cut down the cost. Besides because of the velocity and efficient, the logistics houses can gain more net incomes. Expect that, substructures built, devices renewed and agencies of transit innovated besides create a great environment for low C development. Low C is non merely an economical good behalf, but besides a sense of duty for society.

Realization Ways

This paper discussed the realisation ways from the facet of transit, service, direction, mechanical mechanization and macroscopic angle.

1. Guarantee the balanced development of the low C transit, heighten the transit direction. Low C transit is one of the most of import parts of low C logistics. ( 1 ) Transportation is considered as the lowest C emanation and most efficient agencies. In 2008, the port throughput of Ningbo-Zhoushan port is the secondly in China and the fourthly in the universe, and it is the 8th container port in the universe. Push the development of port in the state. Balance the development and optimum allotment of port resources is the effectual manner to recognize low C logistics. Although H2O transit has its topographic point in long-distance, high-volume, low-priced, it has some drawbacks. For illustration, it is a slow velocity agencies, and it is weather sensitive. So balance the port development is non plenty. It is necessary to develop sorts of transits. ( 2 ) Railway transit is uninterrupted by the conditions, has ordinances and high-volume, a goods train can take 3,000-5,000t cargos, but its cost is merely one several ten percent of the cost of car transit. It is besides the good pick to recognize the mark of low C. Its C emanation is merely a half of route transit, and is one 4th of the air transit. Recently, the authorities is enthusiastic about constructing the railroad substructure. It provides good conditions for railroad transit. The first high-speed along seaside railway has been completed in 2009, it ‘s a good chance to link ports with railroads. It ‘s a crook for this two low C transit. ( 3 ) See the air, although it is non green in C emanation, it is celebrated for high-speed, uninterrupted by the land conditions. If it can convey some new green energy, it likely is low C transit. ( 4 ) For route transit, low C devices are brought in ; this action makes it possible for recognizing low C logistics. It is of import to unite these agencies of transit, take moderately and equilibrate the development, by the greatest extent to recognize low C logistics.

It besides can make something in the transit direction. For illustration, the thought of common bringing. Common bringing means one logistics house serves more than one costumiers, or more than one 3PLs companies portion some installations or devices. [ 3 ] The kernel of common bringing is resource sharing. This method, particularly in in-between and little 3PLs in Zhejiang state, can raise the loading rate of the vehicle, cut down the entire figure of the vehicles and diminish the cost.

2. Supply the diversified services ; do n’t disregard the low C direction in warehousing. Focus on the efficiency direction. ( 1 ) Supply the diversified services. 3PLs should spread out its scope of services instead than be limited to some direct services. It can utilize selling agencies to spread out the selling web. Low C processing and packaging come through low C processing devices, non-pollution wrappage and recycling the waste. And besides use returnable bundle and container every bit much as possible, like recycle the waste containers. ( 2 ) Low C direction in warehousing. It is necessary to follow punctilious direction, cut down the cargo keeping and vehicle non-load rate. ( 3 ) Green supply concatenation direction. Modern logistics with supply concatenation direction is sing a period of of import development. [ 4 ] It is cooperation between endeavors. Green supply concatenation covers the whole procedure from choose natural stuffs to sale merchandises, chiefly contains green design, green production, green bundle, green transit, green selling and green recycle. Take the low C supermarket Wal-Mart as an illustration. Its supply concatenation is celebrated for “ green ” . In the procedure of buying and transit, Wal-Mart reduces C emanation through some inside informations. For illustration, it lets supplier print black-white labels outside the apple container alternatively of coloured labels. This action reduced the cost and the usage of industrial merchandise. Another illustration is Ningbo Zhongyuan logistics. It concentrates on developing the green supply concatenation. This company cooperates with IBM, and spent a batch of money to work a supply concatenation optimisation system. This system use computing machine to make a simulation theoretical account to gauge emanation of CO2 and the client value. It besides monitors distribution information and sensitiveness of CO2 emanation. This system has optimized the routing, consequence in cut downing 10 % of the entire CO2 emanation, peers to one million ton per twelvemonth and Burnss less gasolene ( more than 4.4 million ton ) . So let supply concatenation be “ green ” is a really of import portion of low C logistics. ( 4 ) Optimize the contrary logistics direction. Change by reversal logistics be given to be ignored in many 3PLs in Zhejiang state. But really it is a really of import portion of low C realisation because of the high cost in contrary logistics. [ 5 ] For illustration the celebrated American company Genco, it has already had 104 goods returned processing centres since 2002 around the whole state, and trade with 40million returned goods. The figure of spouses who receive this service is more than 1500. These professional contrary logistics direction companies have more efficiencies and net incomes.

3. Popularize the information engineering and widely usage automated equipment to salvage resources and raise the use rate. Keep a tolerant attitude to new engineerings and devices, receive the challenges and enthusiastic with invention. 3PLs should larn some lessons from developing experiences of other advanced companies. Update its equipment in clip and do the information engineering cover the whole logistics net. Salvage the communicating clip and promote efficiency.

4. Invest the low C logistics undertakings actively, and happen some fiscal support. It needs fund to transform low C logistics in short term. CUI Zhong-fu, the secretary-general of China federation of logistics & A ; buying, has said, “ In the short term, low C realisation would certainly raise the endeavor cost. But in the long tally, low C logistics is a good chance to develop modern economic sciences. ” Besides, the payback period of puting the low C undertaking is short. For illustration, Jiangsu Redbud Textile Technology Inc. with the aid from Wal-Mart, has put a big figure of money to transform the low C devices, the figure about 72,000 dollars, but its payback period is merely a month. So 3PLs can travel to acquire some fiscal support when appropriate. Of class it is better to do it much stronger and to be the nucleus logistics endeavors.

5. At the angle of macroscopic, the authorities would back up the engineering invention ; pull the logistics endowments to do certain the development of low C logistics. Develop low C logistics is besides a societal duty. The authorities would popularise the cognition of low C logistics ; promote the engineering invention by rushing up revenue enhancement alleviation. Besides it can play a function in pulling logistics endowments.

Above all, recognize low C in Zhejiang third-party logistics is an of import mission. We can state the route is Byzantine, but the hereafter is bright. It should concentrate on the low C transformed because of advancing the value and image.



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