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Moving goods in China
It has never been easy getting goods to market in China; even producers of bulk goods and commodities find its transportation system cumbersome, costly, and slow. For makers of finished goods—whose needs are more complex—the situation is even worse: ships and railroads are slow and inflexible; modern trucking networks are nonexistent at the less-than-truckload level; and cargo planes account for only 20 percent of China's aircraft. Yet the business of getting goods to market may soon become more competitive in China—with improved services the likely result.
The take-away: China's transportation and logistics market remains rudimentary and inefficient. Filling in the industry's gaps could be a promising opportunity for partnerships and joint ventures between Chinese and leading foreign logistics companies.
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© 1992-2003 McKinsey & Company, Inc
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