Yanshan County Modern Logistics Park Construction Project

Name

砚山县现代物流园建设项目
Yanshan County Modern Logistics Park Construction Project

Industry Involved

Logistics

Site

Yanshan County, Wenshan Prefecture, Yunnan Province

Overview

By taking the Yanshan Industrial Park and large-scale agriculture base as the supply base, the project will offer convenient and fast logistics, warehousing and transportation services, and build a modern logistics park that integrates functions of commodity display, trade, R&D, warehousing, finance, e-commerce, insurance, customs declaration & clearance and transit. It will become an important trade, commence and logistics node on the Yunnan – Guangxi – Guangdong great channel.

Content

The project is mainly to construct five functional zones: modern logistics & warehousing area, grain storage area, standardized factory building, comprehensive service area, and financial convention center.

Construction duration: 3 years (Phase I)

Land area: 1076.9 mu

Supporting Conditions

Wenshan Prefecture has superior economic location and mature logistics conditions. During the “13th Five-Year Plan” period of Wenshan Prefecture, the logistics industry will focus on the development of an omni-directional logistics system including cross-border logistics, manufacturing logistics, urban and rural distribution & logistics, e-commerce logistics, aviation logistics, and cold chain logistics. During the “13th Five-Year Plan” period, Yanshan County will speed up the construction of the new patterns, namely the “Wenshan – Yanshan – Pingyuan half-hour economic circle” and the “Wenshan – Yanshan coordination”, bringing unprecedented development opportunities for the project. Wenshan County has cultivated and introduced a number of leading industries in the advantageous industries such as vegetables, panax pseudoginseng, pepper, flue-cured tobacco, and grain, which have a large demand for logistics. Since the commencement of construction on May 21, 2014, a total investment of RMB 617.5 million (of which RMB 180 million was invested in the period of January to September of 2017, equal to 225% of annual planned investment (RMB 80 million)) has been invested in the Modern Logistics Park in Yanshan County. A cumulative amount of more than 5 million cubic meters of backfilling has been completed. The construction of the hardware infrastructure for the customs’ “two warehouses” and information building and the main construction of hotel have been completed. Now, the decoration and finishing of hotel and the construction of roads in the Park is under progress.

Investment Estimate and Fund Raising

The planned total investment is RMB 2.86 billion.

Fund raising: self-raising by enterprise and bank loans

Preferential Policies Applicable

For the investor of the project, the approval procedure will get simpler. The investor can enjoy multiple preferential policies for land, taxation, household registration and listing protection. The County’s Bureau of Economic and Commercial Affairs will provide the whole-process service for newly settled projects, and offer the “one-stop coordinated-process service” to the investor in a “convenient, fast, and considerate” way.

Market Prediction (Analysis)

In 2015, the total value of social logistics goods of China amounted to RMB 219.2 trillion, which was calculated at comparable prices, a growth of 5.8% year-on-year, which was 2.1 percentage points drop from the previous year. In the first quarter, it was RMB 49.4 trillion, an increase of 5.6%, down 3.0 percentage points; in the first half of the year, RMB 104.7 trillion, an increase of 5.7%, down 3.0 percentage points; in the first three quarters, RMB 162.8 trillion, an increase of 5.8 percent, down 2.6 percentage points. The total value of social logistics goods of the whole year showed a steady development trend.

It is expected that the compound annual growth rate of China's tertiary industry will reach 16% during the 13th Five-Year Plan period. Among them, the growth rate of basic logistics services (warehousing and transportation) is about 10%, and that of high-end logistics services is more than 30%. High-end businesses such as supply chain management, professional third-party logistics and cold chain services will usher in a period of rapid development. At present, the logistics enterprises in Yunnan Province are gradually transforming from single function to comprehensive logistics, most of which have completed the transformation from traditional logistics to modern logistics. It is predicted that the total value of logistics industry in Yunnan will reach RMB 6.3 trillion in 2020.Yanshan County has the congenital conditions for the development of logistics. With a good market prospect, the project has a large profit potential.

Profit Model and Preliminary Benefit Analysis

After the Phase I project is completed, the project can achieve an annual comprehensive operating income of RMB 2 billion and an annual corporate profit of RMB 300 million, and will pay a tax of RMB 60 million every year. The payback period of the project will be about 11 years (including the construction period of 3 years). It will offer more than 1000 jobs, from which about 40,000 people can benefit directly or indirectly.

Risk Analysis

The main risk of the project comes from the impact of local agricultural development level.

Cooperation Pattern

Sole proprietorship, joint venture, equity participation, PPP, etc.

Contact Information

Contact Unit: Bureau of Industry, Information Technology and Commerce of Yanshan County

Contact Person: Ji Xingyun

Tel.: 13887840183

Fax: 0876-3012427

E-mail: 393005731@qq.com