Report sees ample Asia logistics opportunities
The Asia-Pacific transport and logistics market offer investors and operators the industry's best prospects for growth and returns, according to a new report from U.K.-based analyst Transport Intelligence.
The report, Asia-Pacific Transport and Logistics 2011, said the evolution of China into a high value production location offers opportunities for freight forwarders and contract logistics providers, as does a spilling of lower cost production into China's neighboring markets.
The report also said the 'integration of the leading Asian economies is proceeding fast with free trade agreements reducing barriers to international commerce,' with logistics companies increasingly able to view parts of the region as a single market.
Also aiding operators and investors is the money governments in the Asia-Pacific region are pouring into intra-regional infrastructure projects.
'Emerging countries such as Laos, Cambodia and Sri Lanka have seen major boosts in their economies as the number of manufacturing operations increase and disposable income rises,' Transport Intelligence said. 'Consequently, these countries are rapidly ramping up projects to build airports, roads and rail networks in order to compete in the global economy.
The report's principal author, Cathy Roberson, said Asia is no longer just about pure exports.
“Although the region will remain an export leader for years to come, the growing intra-regional trade is creating an intricate supply chain particularly as China advances to more skilled manufacturing and lower-value production migrates to other Asian countries,' Roberson said. 'Growth in contract logistics, express and freight forwarding services is expected to maintain double-digit increases through 2014 with China and India leading the way.”
Report sees ample Asia logistics opportunities
