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Asia Pacific logistics market transforming, suggests new report
Asia Pacific’s logistics industry continues to develop at a fast rate despite the economic weakness of its two largest trade partners ’ the EU and the US. Ti’s latest report, Asia Pacific Transport & Logistics 2013, suggests that shifting trade lanes, the growth of the ASEAN community and intra-regional trade have prompted a transformation of the region’s logistics market and significant investment by logistics providers.As trade dynamics change with its largest trade partners, the EU and the US, Asia Pacific is in search of new partners to facilitate the continued growth of its export market. Africa, for example, is among the fastest growing trade markets for China; trade between the two increased over 25% in 2012. In fact, according to China’s Ministry of Commerce, African trade will likely surpass the Europe and the US as China’s largest trade partner in the next three to five years.
As external trade changes, intra-Asian trade is on the increase. Asia Pacific Transport & Logistics 2013 provides in depth analysis of this trend and outlines its impact on growth forecasts for the region’s transport and logistics market. The increase in intra-Asian trade is the result of several factors, including the relocation of manufacturing to such countries as Vietnam and Cambodia. In addition, the onset of 2015 will bring a new economic bloc ’ ASEAN Community. This new economic bloc is supporting substantial infrastructure improvements, linking the member countries together via road, rail, air and sea. Not only are the countries linking together, but also with China and India to aid further development of intra-Asia trade.
Furthermore, because much of the infrastructure within Asia has been focused towards exports, infrastructure projects are now being undertaken to meet import and domestic needs. For example, the need for warehousing is great throughout Asia Pacific while road transportation across the region continues to attract the attention of logistics providers.
According to Cathy Roberson, Ti’s Senior Analyst and the report’s author, ‘Logistics providers continue to be drawn to Asia Pacific despite the global economic upheaval. Through the support of government funding for major infrastructure developments, the region provides considerable opportunities for logistics providers to develop their service offerings and expand their business.’
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