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IRU 30th WORLD CONGRESS

Logistic Service Insures the Ever Lasting Economic Development

Duanwei Fan

Vice President

SINOTRANS Group

MARCH 15,2005

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China has gradually become a Center for International Manufacture and Trade

Chinese GDP increases from USD140 billion in 1978 to USD2,256 billion in 2005, economic scale ranks No. 6 in the world.

Chinese foreign trade climbs up to No. 3, with total value of USD1,422 billion. Chinese import and export reliance reach 67%, which means a large quantity of our manufactures are for exporting purpose.

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Rapid Growth of Chinese Logistic Industry (1) Chinese total cargo value for logistic service has increased 11.6 times, from USD370 Billion in 1991 to USD4.75 Trillion in 2004

The revenue for logistic service gains 2.5 times from $28 Billion in 1991 to $100 Billion in 2004.

The average annual increase for Chinese logistics is over 10%

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Rapid Growth of Chinese Logistic Industry (3)

Chinese road traffic is 1.8707 million kilometers, highway is 34000 kilometers, ranking No. 2 in the world .

commercial vehicle vehicles are more than 5 Million units, the total cargo volume is up to 12 Trillion tons, volume for cargo turn over is 784.09 Trillion tons

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Rapid Growth of Chinese Logistic Industry (4)

Foreign logistic companies quickly enter China market. According to the promises to WTO, till the end of 2004, the restrictions in service area and share ratio of road transport, whole sale and retail of general commodities and logistic services have been removed and Chinese logistic market has further open to the world. By the end of 2005, almost all leading logistic enterprises in the world and more than 200 road transport companies (set up more than 700 self-owned companies and joint ventures) entered Chinese logistic market.

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China is Working Hard to Develop its Trade and Road Transport with Neighboring Countries

In recent 20 years after China opens its door to the outside world, Chinese international road transportation grows very fast.

Till the end of 2004, China opens more than 60 boarders to international road transport and has more than 140 cargo and passenger lines with neighboring countries.

Chinese government signs 10 Mutual Agreement with neighboring countries like Russia and Mongolia and 3 Multilateral Agreement with related countries.

In 2004, the total cross boarder vehicle time is 1.4 million , cross boarder passengers time are about 8 million and cargo volume is over 10 million tons.

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SINOTRANS is the Major Player in Chinese Logistic Market (1)

WHAT IS SINOTRANS A company who has 56 years history

A company who has vessels, harbors, trucks, warehouse

A transport company who focuses on logistics

Transportation network both at home and abroad has been established.

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SINOTRANS is the Major Player in Chinese Logistic Market (2)

41 domestic subsidiaries, 2 listed companies,

1000 business entities, 263 joint ventures.

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SINOTRANS is the Major Player in Chinese Logistic Market (3)

9 Rep. offices, 48 overseas subsidiaries, with employees over 3000 and 400 agents abroad

Int’l Logistic ServiceInt’l Logistic Service Domestic ServiceDomestic Service 33PL PL SCMSCM

•Ocean Imp/Exp•International Freight Forwarder (Ocean/ Air/ Rail)•Shipping Agency•Customs Broker•Bonded Warehouse•Int’l service Network

•Self-owned Port•Express Customs Clearance•Bonded Consignment Service•Port Service•CY/CFS service•Trucking (Line Haul and P&D)•FTL/LTL•RDC/CDC•CROSS-DOCKING

•Solution Design•Warehousing•Transportation•Regional P&D•Inter-modal Transport (Ocean /Air/Rail)•Distribution processingTrack and Tracing

•Solution Design•Supply Chain Management•Production Logistics Service•Sale and After Sale Logistic Service•JIT Service•Dedicated Logistic Service

Services Provided by SINOTRANS

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Q & A

VISIT US @WWW.SINOTRANS.COM

E-MAIL: FANDUANWEI@SINOTRANS.COM