Sector and Others

 1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

International express mail service refers to the express mail and logistic service between 2 or more countries (or regions). At present, the international express mail service is the most important component of the express mail service of China. It is the main business of some “tycoons” in the express mail industry such as EMS, DHL, UPS, FedEx, TNT and ARAMEX, etc., the annual business volume grows at the rate of 30% and it has played the vital role in the foreign trade of China, made contribution to the integration of the economy of China into the world and achieved the outstanding social and economic benefits. 

Compared with the domestic freight, the international express mail service has the following main characteristics:

1. The international express mail service, involving the international relations, is a policy-based foreign activity. The international express mail service is one of the components of the international trade. In the organization of the freight, the wide range of business contacts with the foreign countries should be directly or indirectly conducted. Such contacts are not only the economic ones but also involve the political issues in the world and it is a policy-based foreign activity. Therefore, the international express mail service is not only an economic activity but also an important foreign affair, which requires that we should take the economic viewpoints to handle all the businesses but also have the policy philosophy to be engaged in the international freight according to the requirements of the foreign policy of China.

2. The international express mail service is a long-distance transport with a lot of intermediate links. The international express mail service is the transport between the countries and between countries and regions. Generally, the transport distance is long, the multiple transport tools are often needed, the multiple loading, unloading and handling times are carried out and there are a lot of intermediate links such as transfer of ships and change of transport mode, etc., the different regions and countries are passed and the different laws and regulations in all the countries are applied. If there is any problem in any of the links, it will influence the whole transport process, so this requires that we should organize the process, apply one link tied to another and prevent a problem in a link bringing about the loss in the transport.

3. The international express mail service involves a broad range of businesses and the situation is complex and variable. The international express mail service involves a lot of domestic and foreign departments and the communication with the owners, transport organizations, commodity inspection agencies, insurance companies, banks or other financial institutions, customs, ports and all the intermediate agents, etc. of the different countries and regions is needed. In addition, because the laws and regulations of all the countries and regions are different, the trade and transport habits and operating methods are different, the financial and monetary systems are different and the political, economic and natural conditions are changing. All these will greatly influence the international express mail service.

4. The international express mail service is time-sensitive. The imported and exported goods should be loaded and transported to the destinations in time, which is of great importance for fulfilling the import and export trade contracts, meeting the demand of the commodity competitive market, improving the market competitiveness and settling the exchange in time. Especially some live commodities, seasonal commodities and sensitive commodities require faster transport. Only when the opportunity of supply is seized can it be favorable to improving the competitiveness of the exported commodities and consolidating and developing the sales market. Therefore, the international express mail service should strengthen the time sensitivity, seize the time and speed to win through the speed.

5. The international express mail service has big risks. Because there are a lot of links, the transport distance is long, a lot of businesses are involved, the situation is complex and variable, it is time-sensitive, the change of the international situation, social disturbance, various natural disasters and accidents, wars, chaos, blockade, embargo or piracy along the transport routes may directly or indirectly influence the international express mail service and even bring about the serious consequences in the international express mail service, it has big risks. In order to shift the risks and loss in the transport, the transport insurance of all the imported and exported goods and transport tools should be handled.

6. The international express mail service is slower than the commercial express mail service. The inquiry about the information in the website is lagging and there are few arrival countries. Once any problem occurs, only the written inquiry can be carried out and the time is long.

1.1.2 Market Prospect

In the situation of the slow macroeconomic growth and low-speed development of the traditional departments, the express mail service industry has become the spotlight of economic growth of China in recent years.

In 2008-2014, the express mail service volume of China is increased from 1.5 billion pieces to 14 billion pieces and it has been more tripled in 7 years, the annual average compound growth rate reaches 45.1% and the market scale rises to No. 1 in the world. In the same period, the income of the express mail service is increased from 40.8 billion yuan to 204.5 billion yuan, increasing by four times in 7 years, the annual average compound growth rate reaches 30.8%, the proportion of the income of the express mail service in the total income of the postal service industry of China has increased year by year from 43% in 2008 to 64% this year.

 Because the prices of some domestic luxuries and 3C commodities are extremely high and the maternal and infant commodities have the different quality, more and more people have started the online shopping overseas. The trans-border e-commerce has tended to rapidly increase in recent years, keeping the year-on-year growth rate of about 30%-40%. It is predicted that the trans-border e-commerce transaction scale will have been 8000 billion by 2017, so the huge trans-border logistic demands are brought about. In order to meet the demands, more and more domestic express mail service enterprises have started the international express mail service. By now, SF has hand 23 all-cargo aircraft and opened the express mail service to Southeast Asia, Japan, ROK, Australia, North America, Russia and Mongolia, etc. YTO Express also announced that it would enter the aviation freight field. It is predicted that it will have 20 cargo aircraft.  

On the whole, the express mail service industry has developed rapidly, the international express mail service demands will continuously increase and the domestic express enterprises will successively start the international express mail service. Therefore, the international express mail service center project is feasible with the broad development prospect.

1.1.3       Advantageous Conditions of Project Construction

(1)  Policy support

Premier Li Keqiang pointed out when inspecting the express enterprises in 2014 that the express mail service industry is a “black horse” of the economy of China. In his Governmental Work Report, it is clearly pointed out that great efforts will be made to promote the development of the express mail service industry, which marks that the influential power of the express mail service industry has been increasingly improved in the economy and society and points out the direction for its development in the future. In October, 2015, the State Council printed and issued the Opinions on Promoting the Development of the Express Mail Service Industry in which are presented the general requirements, key tasks, policies and measures of promoting the development of the express mail service industry. This is the first program document guiding the development of the express mail service industry promulgated by the State Council. In March, 2016, the 4th Session of the 12th National People’s Congress was opened and Mr. Li Keqiang, Premier of the State Council made the government work report and pointed out that the logistic distribution network should be perfected to promote the healthy development of the express mail service industry.

Since Changchun New Area was founded, a series of policies such as Policies on Promoting the Development of the Strategic Emerging Industries, Policies on Promoting the Innovative Development of Science and Technology, Policies on Accelerating the Assembly of the High-level Personnel and Policies on Supporting the Innovative Development of Changchun New Area, etc.

(2) Location advantages

Changchun Airport Development Zone, under Changchun New Area, has the obvious location and transport advantages. Changchun New Area is located in the core hinterland of Changchun-Jilin-Tumen Development and Opening Pilot Zone and geographical center of Northeast China and the important node of Harbin-Dalian Economic Belt and China-Mongolia-Russia Economic Corridor. In the Area, Longjia International Airport is the national trunkline airport, some expressways such as Jingha Expressway and Hunwu Expressway, etc. meet here, some trunkline railways such as Jingha Railway and Hada Railway penetrate the whole district, Changchun-Manchuria-Europe International Freight Train has been opened and the sea, land and air 3D transport network has been preliminarily established, so it is convenient to have communication of personnel and goods with other regions of Northeast China, Beijing, Tianjin and Hebei and the surrounding countries of Northeast Asia. The new district, depending on the construction of Longjia International Airport and comprehensive railway freight yard, is building the international airport and international inland port, the “three major channels” to the west, north and south and incorporate to the major pattern of economic development in the world.

(3) Industrial development advantages

Changchun New Area, focusing on the building of the innovative industrial system with the advanced manufacturing industry, modern agriculture and modern service industry as the important points, insists in the coordinated and interlinking development of the four major development zones and preliminarily establishes the industrial development pattern with the prominent important points and distinctive characteristics: in the airport development zone, the emphasis is put on the development of the logistic industry, finance, leisure tourism and health endowment and other modern service industry as well as airport advanced manufacturing industry and it will be built into the pilot zone of airport economy and opening to the outside in Northeast China. In Beihu Development Zone, the emphasis is put on the development of the high-end equipment, photoelectric intelligent, biological medicine, fine food, new materials and energy industries to promote the construction of the international inland port of Northeast Asia, build the international inland port oriented to Northeast Asia and build itself into the strategic emerging industry pilot zone. In Changde Development Zone, the emphasis is put on the development of the health industry, fine food industry, strategic emerging industry and engineering mechanical industry, etc. to build the new urban area suitable to live in and open businesses; in the New and High-tech Zone, the emphasis is put on the development of the new and high-tech industry and high-end service industry to build the functional assembly zone of the new and high-tech industry and high-end service industry. The industrial pattern and development of Changchun New Area will provide the good industrial support for the project.

(4) Personnel and innovative resource advantages

In Changchun New Area are assembled a lot of colleges, universities and scientific research institutions such as Jilin University, Northeast Normal University, Changchun Institute of Optics, Fine Mechanics and Physics of Chinese Academy of Sciences and Changchun Institute of Applied Chemistry of Chinese Academy of Sciences, etc.; in the district, there are 3 national-level engineering labs, 2 national engineering technological research centers, 11 national-level key labs and 50 key labs above the provincial and ministerial levels. The district has 34 national-level innovative parks and bases such as National Patent Navigation Industry Development Experimental Park and National Innovative Personnel Cultivation Demonstration Base; in the district is assembled Changchun Northeast Scientific and Technological Innovation Center built by “1 academy, 4 institutes and 4 universities” including Changchun Branch of Chinese Academy of Sciences and Jilin University, etc., the special technological platforms of photo-electrics, new materials, new energy, biological medicine and ecological agriculture, etc. and public service platforms of governmental affairs, information, finance and personnel, etc. are built.

1.2 Project Construction Contents and Scale

1.2.1 Product Scale

In the Aviation Logistic Industrial Park of Changchun Airport Economic Development Zone, the import and export freight yard, international express mail center, customs supervision warehouse, bonded area, customs commodity inspection offices and other facilities will be built and the scientific, rational, high-efficiency and convenient port customs clearance system integrating management and service will be established. It is planned to introduce the international famous express mail service enterprises to the international express mail center.

The project covers an area of 150,000 m2, with the total investment of 1 billion yuan.

1.2.2 Construction Contents of the Project

Express mail sorting center, loading and unloading site, storage site and office area, etc.

1.3 Total Investment and Capital Raising of the Project

The total investment of the project is 1 billion yuan, including the construction investment of 0.8 billion yuan.

Table 1: Summary Table of the Total Investment of the Project

No.

Expense Name

Amount of Investment

Proportion of Total Investment %

Remarks

1

Construction investment

80000

80

 

2

Interest in the construction period

 

 

 

3

Current funds

20000

20

 

 

Total investment of the project (1+2+3)

100000

100.00

 

Note: “RMB 10, 000” in the Table shall be RMB.

1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes

After the project reaches the output, the annual sales income will be 1.4 billion yuan, the profit will be 200 million yuan, the investment recovery period will be 5 years (after the tax, including the construction period of 1 year) and the investment profit rate will be 20%.

Table 2: List of Major Indexes for Forecast of Financial Benefits

No.

Name

Unit

Index

Remarks

1

Business income

10,000 yuan/a

140000

Normal year

2

Total profit

10,000 yuan/a

20000

Normal year

3

Internal financial yield rate of the investment

%

14

After the income tax

4

Net financial value (Ic=10%)

10,000  yuan

13800

After the income tax (operating period of 10 years)

5

Recovery period of all the investment

a

5

Including the construction period of 1 year

6

Investment profit rate

%

20

 

Note: “RMB 10, 000” in the Table shall be RMB.

1.4.2 Social Evaluation

The project is feasible, the market competitiveness is strong and it can promote the regional economic development. It is predicted that it can promote the employment of 1000 persons and achieve the profit and tax of 150 million yuan.

1.5 Cooperative Ways

Joint venture

1.6 What to be Invested by Foreign Party

Funds, interview for other modes

1.7 Construction Site of the Project

Aviation Logistic Industrial Park of Changchun Airport Economic Development Zone

1.8 The On-going Condition of Project

The project is inviting the businessmen.

2. Introduction to Partner

2.1 Basic Conditions

Partner’s name: Changchun Airport Economic Development Zone

2.2 Overview

Changchun New Area is 17th state-level new area which was established under the approval of the State Council on February 3, 2016. It is next to the main urban area of Changchun City, its main part is located in the northeast of Changchun City, its approval area is around 499 square kilometers, and its jurisdiction covers four zones, including Changchun Hi-tech Industrial Development Zone, Changchun North Lake Science and Technology Development Zone, Changchun Airport Economic Development Zone, and Changde Economic Development Zone.

The OVERALL PLAN OF CHANGCHUN NEW AREA approved by the state has defined the strategic positioning, function layout, key task and development goal of the new area. Its strategic positioning is to create an innovative economic development demonstration area, a key engine for the new round of revitalizing Northeast China, an important platform of Tumen River regional cooperation and development and an advanced area of system and mechanism reform. Its function layout is to build “Two Axes, Three Centers and Four Bases”: “Two Axles” means Harbin-Changchun Strategic New Industry Development Axis, Changchun-Jilin High-end Service Industry Development Axis, “Three Centers” means science and technology innovation center, international logistics center, international communication and cooperation center and “Four Bases” means high technology industry base, advanced manufacturing industry base, airport economic industry base and health & pension industry base. Its strategic task is to promote innovation and entrepreneurship level, strengthen endogenous driving force of development, greatly develop innovative industry system, accelerate the cultivation of three leading industries of advanced equipment manufacturing industry, modern service industry and modern agriculture, build a green and intelligent new urban area, promote urban modernization and internationalization level, promote Changchun-Jilin-Tumen interactive development, accelerate the integration process of Changchun, Jilin and Tumen, actively integrate into and serve “the Belt and Road” construction, accelerate the creation of “Silk Road”, new platform in north line, new door and new passage, and achieve the transition from new area to international free trade zone. Its development goal is strive to fundamentally complete the construction of three dimensional transportation network in the new area, preliminarily clear the external logistics passage for land and maritime joint transportation, increasingly perfect the public service facilities, achieve major breakthrough in reform, innovation and opening cooperation, greatly promote innovation driving capacity and fundamentally create innovative modern industry system by 2020.

Changchun Airport Economic Development Zone, depending on the plan of the new area and the current industrial foundation, has the general orientation: core zone of opening and cooperation in Northeast Asia-cooperative and win-win international center, sports and vigorous healthy center, innovative, inclusive and knowledge center. It is the ecological and intelligent city demonstration zone in the north of China-high-efficiency and amiable intelligent center, self-reliance and coexistent ecological center. In the spatial layout, it will build 1 center, 2 bases and 6 parks. 1 center-International Exchange and Cooperation Center, 2 bases-Airport Economic and Industrial Base and Health Endowment Industrial Base, 6 parks-Northeast Asia Green Health Industrial Park, International Educational and Information Industrial Park, Northeast Asia Ice and Snow Sports Park, Innovative Urban Field and Garden Ecological Park, Airport Industrial Manufacturing Park and Northeast Asia Aviation Logistic Park. In the east of the airport, the modern high-end service industry of international affairs cooperation service, business and finance, cultural creativity, physical education and health, leisure tourism, etc. will be actively developed. In addition, according to the development philosophy of “integration of industries and city”, the functional construction of the city will be strengthened, the infrastructural construction will be further perfected, the ecological environmental protection and landscape building will be enhanced, the matching capacity of the comprehensive service functions of the city will be improved and the regional opening and cooperation center of Northeast Asia and Northeast Asia Green Consumption Center will be built. In the west of the airport, the emphasis is put on the development of the intelligent control and sensing technological industry (mainly including the three major industrial directions, that is, intelligent equipment, electronic elements and energy conservation technology), ice and snow sports equipment manufacturing industry and aviation logistic industry.

Changchun Airport Economic Development Zone is planned to have had the urban construction land of 38.09km2, which can accommodate the population of 0.2 million by 2020; it will have had the urban construction land of 78.83km2, which can accommodate the population of 0.4 million by 2030.

2.3 Contact Method

Contact Person: Li Xipei    

Mobile: 13578945400

E-mail: 1719761749@qq.com

Contact Method of the City (Prefecture) of the Project:

Contact Unit: Changchun Bureau of Economic and Technological Cooperation

Contact Person: Bo Zhanlin

Tel: 0431-82763933  82765252

Fax: 0431-82763933

E-mail: cc82763933@163.com

Website of the City or Prefecture: http://www.ccmbc.com/

 

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