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Sep 1, 2006

TRANSPORT & LOGISTIC - NEW REPORTS

* UK - Out-sourcing to be 'defining trend’ in Chinese logistics market
London,UK -Transport Intelligence -1 September 2006: -- Massive potential exists in the Chinese logistics market for integrated contract logistics companies. This is one of the key findings of a new survey by Transport Intelligence contained in its latest report China Logistics 2006... According to the survey, 68% of respondents from logistics companies believed that out-sourcing was having a ‘noticeable’ or ‘major’ impact on their businesses. When questioned further 76% of respondents stated that the majority of their out-sourced logistics business was derived from multi-national manufacturers with the remainder being generated by locally based Chinese companies... Chief Analyst, John Manners-Bell commented: ‘Out-sourcing will be the defining trend behind the growth of the Chinese logistics industry over the coming few years...’

* New initiative to improve container return logistics efficiency
London,UK -Transport Intelligence -31 August 2006: -- A collaboration of Dutch Universities and international business companies has started to improve the availability of empty containers for return logistics... The ultimate goal of the initiative is to optimize matching the transportation requirements of recyclables with empty-container flows. The focus at the outset is on the Electrical and Electronic market... Return logistics is expected to become of major importance in global supply chains. Return freight will therefore become an important volume for main ports. From the perspective of the container imbalance, return logistics will become of growing importance for carriers. According to Drewry Shipping Consultants, on European routes 41 percent of the containers came back to Asia empty last year. On US routes, this percentage was around 60%... It is expected that return flows will contribute to solving the container imbalance. Apart from this, it is expected that the efficiency of return flows can be improved, resulting into less (empty) container miles...

* India - New law to have 'chilling effect' on express sector

London,UK -Transport Intelligence -29 August 2006: -- The global express industry has slammed proposals by the Indian government to restrict foreign ownership of courier, express and parcels companies to 49% in an attempt to further regulate the industry... At present foreign companies such as FedEx, UPS, DHL and TNT are able to wholly own their Indian subsidiaries. The decision, if made law, would mean that they would need to sell the majority shareholding of their companies to domestic partners... Given that India is playing such an important role in the development strategies of many of the world’s largest express companies, developments in the market will be viewed with great concern and may lead to the sector reassessing its investment plans. This will undoubtedly have an impact on India’s economic growth, the competitiveness of its industry as well as job creation...

(For more information, reports go to www.transportintelligence.com or contact Mike Nordmann on +44(0)1666 511880)

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