 Rising
to the challenge
China's successful bid for the
2008 Olympic Games was a major triumph not only for
Beijing but for the country as a whole. However, this
was merely the first hurdle: since then a huge effort
has been made to ensure that the 2008 Games will live
up to expectations. Efficient management of logistics
will be key to the success of the Games as a whole.
A study conducted by Professor Zhang Wenjie of the School
of Logistics at Beijing Jiaotong University found that
more than 200,000 athletes, officials, delegates and
journalists will travel to China for the Olympic Games
from over 200 countries and regions. Beyond this, the
Games will require more than 1.2 million items of sports-
and media-related equipment to be shipped to China from
abroad. With records likely to be broken both in the
number of participants and in the number of spectators
coming to watch the events, the 2008 Olympics seems
set to be the largest event in the history of the games,
adding to the monumental logistical challenge facing
The Beijing Organizing Committee for the Games of the
XXIX Olympiad (BOCOG). Experts suggest that the financial
cost alone will reach 41.7 billion yuan.
 Although
most of the events for the Games will be held in Beijing,
there are in fact several other Olympic Cities which
will co-host the Olympics in 2008. Stadiums in Tianjin,
Shanghai, Shenyang and Qinhuangdao will be used for
the preliminary stages of the football tournament, while
Qingdao and Hong Kong will host the sailing and equestrian
events respectively. Professor Zhang's study showed
that, as the Games progress, 75,000 tonnes of equipment
and materials will need to be transported around the
country, requiring the use of more than 2,000 vehicles.
Transport infrastructure
 In
order to manage these transportation requirements effectively
and efficiently during the Games, the Chinese Government
has made a great effort to enhance and improve China's
transport infrastructure. Since China's winning bid
for the 2008 Games, an estimated 180 billion yuan has
been invested in 142 projects to improve city infrastructure.
The building of new stadiums and venues aside, most
of these projects have been related to transportation
both within and around Beijing. According to the Beijing
Olympic Action Plan, BOCOG hopes to have a total 202
kilometres of railway track, 718 kilometres of expressway
and 14,700 kilometres of motorway in place in Beijing
before the Games begin.
Work has been done to improve China's
inter-city rail network as well, particularly to connect
Beijing to the other Olympic Cities. By 2007, China
had upgraded over 6,000 kilometres of track to allow
operational speeds of up to 200 km/h. The China Railway
High-speed rail network now covers many of the cities
on China's eastern seaboard. High-speed trains from
Beijing to Qingdao, Shenyang, Qinhuangdao and Shanghai
are already in operation, and the new Beijing - Tianjin
Intercity Railway will open in July 2008. This shuttle
service will travel at around 200 km/h, completing the
journey in just over thirty minutes.
 Most
importantly, there have also been large-scale enhancements
to China's airport capacity. Beijing Capital International
Airport has undergone expansion, with a new terminal,
new runways, and new parking and traffic control facilities
being constructed. The airport is now one of the largest
in the world in terms of land area, and ranks highly
in both passenger and cargo movement. It can now accommodate
60 million passengers and handle 1.8 million tonnes
of cargo each year, and will have the capacity for up
to 1900 flights per day during the Olympics; the average
during this period is likely to be around 1600 flights
per day. Beyond Beijing, several other Chinese airports
have also been expanded, including Tianjin Airport and
Qingdao Liuting International Airport.
At the same time, there has been large-scale
investment in logistics facilities, especially around
Beijing. Five freight terminals are planned as part
of Beijing's logistics network for the Olympics
and beyond, at Majuqiao, Yancun, Tianzhu, Shibali Dian
and Laiguangying. However, the main logistics hub for
the Games will be the Olympic Logistics Centre. The
centre is located in the Beijing Airport Logistics Park,
adjacent to the Capital International Airport and connected
by road to downtown Beijing (25 kilometres) and Tianjin
Port (162 kilometres). Covering a total 210,000 square
metres, the centre will be used to store and manage
the vast quantity of equipment that will be needed during
the Olympics.
Customs procedures
 As
mentioned before, the sheer volume of equipment and
materials that will be shipped to China for the Olympic
Games in 2008 poses a logistical problem in itself.
However, it is not just that the numbers are large.
All the goods and equipment that come to China for the
Olympics must be temporarily imported, and undergo Customs
inspection and clearance. These measures will have to
be undertaken within a very limited time frame. Moreover,
according to Chinese Customs laws, items that are temporarily
imported and then re-exported are liable to a customs
deposit. To combat these issues, BOCOG, in conjunction
with the China Customs and General Administration of
Quality Supervision, Inspection and Quarantine of the
People's Republic of China, has established special
regulations and procedures for the import and re-export
of Olympic and Paralympic Games materials. These special
regulations include the exemption of the customs deposit
for materials that are imported for use at the Games
then re-exported within the specified time period. BOCOG
will issue a Letter of Guarantee in lieu of the customs
deposit, once the correct applications have been made.
To make sure that those with shipping
requirements are fully informed about the steps that
must be taken, BOCOG has produced a manual detailing
all procedures for the freight of Olympics related equipment
and goods. This manual explains clearly the steps that
should be taken by Olympic and Paralympic Family Members,
including members of the IOC and the IPC, official delegates
from participating countries and regions, international
sports federations, National Olympic and Paralympic
Committees, and accredited media, when shipping goods
and equipment.
| Rapid logistics development
in the Beijing-Tianjin-Hebei region |
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The
Olympic Games are set to be a huge catalyst
for development of the Beijing-Tianjin-Hebei
region's logistical backbone. It is generally
accepted that the Beijing-Tianjin-Hebei
region already possesses favourable conditions
as a major transportation and shipping hub,
particularly within northern China.
Tianjin will also benefit from the Olympic
Games due to the rapid development of
infrastructure. The municipality's port
facilities are Beijing's closest and only
viable sea access and process over 90%
of the capital's imports, meaning the
Games will necessarily put these facilities
to good use. Moreover, Tianjin's port
infrastructure is a major container and
bulk cargo handling site with connections
to some 300 destinations in more than
170 countries.
Tianjin has also constructed comprehensive
logistics parks to complement port operations,
further boosting capacity. This will,
in turn, facilitate the establishment
of logistics points such as ports, airports,
highways and railways. Hebei province's
access to the Bohai Sea, through ports
at Qinhuangdao, Jingtang and Huanghua,
has also spurred much recent growth and
development, bolstering the regional expansion
of not only maritime capacity, but also
rail, highway and airborne shipping. This
has naturally led to increased investment
in the province's warehousing strength.
Coordination is vital
The Beijing-Tianjin-Hebei region is an
intricate assembly of various locations
and industries within the logistics sector,
and as such cooperation is essential in
promoting balanced and effective development.
It is also imperative in the search to
reduce costs as to raise the region's
competitiveness.
The Beijing and Tianjin authorities codified
a Direct Port Access agreement in 2002,
cementing the two municipalities' logistics
ties. This has ensured that the transit
centre for container cargo at Chaoyang
Port acts as the only distribution centre
approved by the Beijing Municipal Government
for inbound sea freight, indirectly connecting
with Beijing. By transporting goods through
different customs inspection points for
transit, trade declaration, entry inspection
and quarantine procedures can be conducted
in Beijing.
2002 also saw the founding of the Capital
Airports Holding Company, which merged
a number of companies including the governing
authorities of Beijing and Tianjin airports,
allowing for better resource management
and allocation. This new authority has
also promoted the integration of services
at Beijing and Tianjin Airports. Therefore,
customs transit procedures can be applied
in different places for air cargo transport
at Beijing and Tianjin Airports.
In light of Tianjin's pivotal role in
sustaining the Olympics and ensuring materials
and products arrive on time, there will
also be large-scale development at Tianjin
Port. The Tianjin Port Free Trade Zone
has improved procedures and policies in
cooperation the BOCOG, focusing especially
on expediting the processing of goods.
The whole logistics process for the Olympic
Games - trade declaration, goods entering
and transportation to Beijing - will only
take one day. Accordingly, Tianjin will
be the main logistics channel for the
Olympic Games.
And while the games may only last a few
weeks, in terms of logistics their benefits
will last for much, much longer. This
in turn will make a significant contribution
to the development of the Beijing-Tianjin-Hebei
region, and indeed the economic development
of the whole nation.
Contributed by
Professors Ji Shou Wen and Shen Jin Sheng,
School of Logistics, Beijing Jiaotong
University.
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Logistical support
In order to ensure the highest possible
standard of logistics services during the 2008 Olympics,
BOCOG has contracted international logistics firms United
Parcel Service ("UPS") and Schenker Logistics ("Schenker")
to provide consultation and assistance. Both companies
will work with BOCOG Logistics to handle freight and
shipping requirements for all Olympic and Paralympic
Family Members.
Having been selected as the Official
Logistics and Express Delivery Sponsor of Beijing 2008
Olympics, UPS will provide logistics and IT services
to BOCOG Logistics. The company will also manage the
Olympic Logistics Centre. Meanwhile, Schenker will be
the Official Freight Forwarding and Customs Clearance
Exclusive Supplier of the Beijing 2008 Olympic Games.
The Equestrian Events in Hong Kong
will pose their own logistical problems. In particular,
horses must be transported from all over the world to
take part in the Games. The movement of horses over
such long distances is a highly specialised task, and
so international horse transportation experts Peden
Bloodstock GmbH have been contracted to carry horses
to and from Hong Kong for the Olympics.
BOCOG point out that, although Olympic
teams and other relevant parties are free to use other
logistics service providers, it is recommended that
they use the official sponsors for these services. This
is because UPS and Schenker Logistics are familiar with
Chinese customs and import regulations, and also the
special regulations and procedures for the temporary
import of Olympic/ Paralympic Games materials. Moreover,
they have all of the proper Olympic credentials, and
will be familiar with all of the routes and delivery
points for the Beijing 2008 Olympic Games and Paralympic
Games.
A window of opportunity
The 2008 Olympic Games will provide
a fantastic opportunity for businesses all over China,
not least in Hong Kong. Although major sponsorship and
supplier contracts have gone to international firms
who have the required experience and expertise to undertake
the jobs required, there are still many opportunities
for innovative local firms who can provide services
for the Games. For example, Hong Kong firm Jets Technics
won a bid to provide flooring and walls for the stables
and horse clinic at the Shatin Racetrack. Jets Technics
will use materials recycled from used tyres, an eco-friendly
measure which will also ensure that the venue will be
safe for the horses, protecting their hooves and mitigating
the risk of bacteria spreading.
It is also expected that the 2008 Games
will bring a large growth in tourism both in Mainland
China and Hong Kong. Surveys by the Hong Kong Tourism
Board ("HKTB") suggest that two thirds of
long-haul visitors to Hong Kong travel on to mainland
China; as a result, HKTB will focus on ensuring that
a significant portion of those travelling to Beijing
for the Olympic Games will stop over in Hong Kong. James
Tien, chairman of HKTB, believes that the large number
of visitors expected will give a boost not only to the
local tourism sector, but to the retail sector as well.
In logistics, there are still many
opportunities for local companies to make their mark.
Professor Zhang Wenjie's assessment of the logistics
needs for the Olympic Games estimated that, in Beijing,
around 71.3 percent of Games-specific demand will be
in catering and retail, and that garbage disposal alone
would generate around 1.08 billion yuan. It is hoped
that not only will the Chinese logistics industry take
hold of these opportunities, and help make the Beijing
Olympics a success, but that local companies will also
learn from the experience of working with global giants
such as UPS and Schenker. The Chinese logistics industry
is still in an early stage of development, but the Olympic
Games should help drive it onwards and upwards. Hong
Kong will play a large role in this as well; as Government
ministers and industry leaders alike have remarked,
close co-operation between the Hong Kong and Chinese
logistics industries will be a win-win situation.
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