Chinese Cities Ranked by Their Logistical Performance

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It is said that one does not only buy a product, but the supply chains that come with it. For those sourcing from China, this is especially true. The rapid development of China has taken place unevenly within its territory. Various levels of infrastructure development, different legal structures – particularly within special economic zones – and diverse geographic features give some cities a logistical edge over others. A recent paper[1] in the Journal of Social Science and Management attempts to make sense of it all. The findings of this study are presented to enable supply chain professionals to assess their own logistical standing.

Logistics Rankings list2.JPG

The authors evaluate a city’s ability to move goods based on ten variables, which include local gross domestic product, the number of foreign funded enterprises, freight traffic (by weight), investment in fixed assets, railway and highway density, and possession of civil motor vehicles. Scores are then generated from the relative dearth or abundance of these features to compare the logistical situation of 30  Chinese cities.

The results are unsurprising. The top of the list is dominated with cities along the east coast. Shanghai is number one in all but two categories – it is behind Beijing and Tianjin in railway development and ranks 21st in regards to the possession of motor vehicles. Chongqing may be considered the most prominent city for logistics in western China. It is 7th overall, number two in freight traffic, and is in the top five in four of the other factors. In general, cities in the west were overshadowed by their eastern counterparts: Xining (in Qinghai province) lagged behind the other 29 cities in all but one category - freight traffic.

Keep in mind that this study provides only a historic snapshot of a dynamic picture, given that 2005 data was used. However, the overall situation of China's logistical capabilities remains clear; the north has an edge in rail capacity, the south by way of road, but above all it is the eastern cities which are best endowed to handle large flows of goods.

CN logistics rankings map2.JPG


[1] Jiang, C., and D. Chen. "Research on Urban Logistics Infrastructure: An Empirical Study of China." Journal of Service Science and Management 2.2 (2009): 80-91. ProQuest Computing, ProQuest. Web. 21 Dec. 2009.

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