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Project Proposal for Investment: Kunming Xincheng International Logistics Center

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Project: Kunming Xincheng International Logistics Center

Project status: Newly constructed

Company: Yunnan Xindu International Logistics Investment and Development Co., Ltd.

Project Location: Luoyang Logistics Park, Kunming Economic and Technological Development Zone.

Company Profile:

Yunnan Xindu International Logistics Investment and Development Co., Ltd. (Hereinafter referred to as Xindu Logistics) is a wholly owned subsidiary of Yunnan GuangFang Enterprise Group. It was set up in 2005 and had a registered capital of 50 million Yuan, their main scope is business management and investment planning.

An Brief Introduction:

Covering an area of 1,500 acres, this project is proposed to establish a modern international logistic center that functions as port and goods delivery, transit, distribution and circulation processing center. It also functions as information service center, logistics consulting center, training center, goods displaying center and auxiliary e-commerce center. This project has unique location and transportation advantages: it is close to the largest railway container center station of Yunnan and the rail freight hub in Kunming ____ the South Railway Station; And highways extend in all directions. Kun Yu highway, Kun Shi highway, AnShi highway, New Kunluo road, Shilong road, South City Road are all very convenient.

Construction Period: 3 years.

Key Economic Parameters:
Estimated total investment is 978.5 million Yuan, of which 342.5 million Yuan to be invested by Xindu Logistic Company, and the other 636 million Yuan will be from foreign investment through co-operation. After completion of this project, the estimated annual sales is 440 million Yuan and the annual profit is151 million Yuan.

Preparatory Work and Progress:

Graphic design has been finished according to the general and detailed planning and regulations of the project area. The 750 acres land needed in the first period of construction is undergoing formalities in accordance with required procedures and is expected to finish all the related procedures before June 2009.

Market Analysis:

As the economic center of Yunnan province, Kunming is expected to have a logistic service demand up to 60 billion Yuan and a third part logistic demand of 12.7 billion Yuan by the year of 2015. As the goods delivery and distributing center of Yunnan province, its logistics business accounts for more than 2/3 of all the logistics business in Yunnan. The majority of goods from all over the country are delivered and distributed here in Kunming; What is more, the majority of goods exported to ASEAN countries also have the quarantine inspection. It has a large distribution volume of such materials as non-ferrous metals, coal, machinery, electricity, cotton textile and processed food. With abundant logistics material supplying, Kunming will distinguish itself from the other logistics centers as the core of them. At the same time, driven by the rapid development of Yunnan's highway and railway system, Kunming will become one of the inland railway ports besides Harbin. Thus Kunming's position as the center and window for China - ASEAN trade will be further consolidated. And a regional modern logistics network that enables two-way domestic and international trade will be formed.

Cooperation Approach:  Joint venture, cooperation

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