Logistics Development in the Port of Shanghai

Throughout the world, port authorities and shipping companies are reacting to developments in logistics and supply chain management. The Port of Shanghai needs to adapt to a situation in which a seaport is not only part of a transport chain, but also a key component in global supply chains. Many multinational corporations (MNCs) have established manufacturing and sales divisions in China over the last two decades, but there has not been an equivalent advance in the basic infrastructure of logistics, such as transport and warehousing capacity. Indeed, it has become increasingly difficult for manufacturers and marketers in China to expedite products efficiently. A survey of over 200 United States exporters to China claimed that poor performance of local suppliers and carriers in China are basic concerns and create significant barriers to international operations (Carter et a/, 1997). China has lagged behind other countries in applying the concepts of logistics and supply chain management. In this context, there is a lack of experience in generating strategies for the supply of logistics services in the Port of Shanghai. This paper examines the lessons for Shanghai from the experience of logistics services offered by world-class port authorities or operators. Furthermore, a comparison is made with other major ports in competition with Shanghai, and which have the ability to transfer cargo to and from China.