Shenzhen South-china International
Logistics Centre: Overview
Presented by
Shenzhen SILC-Vanquish Logistics Co Ltd.
Presentation Agenda
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Company Background
SILC: Introduction and Location
Strategic Advantages
Services Overview
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Empty Container Depot
Cargo Inter-change
Bonded Warehouse
Logistics Value-added Services
Green Lane and Green Express
• Case Studies
Company Background
• SILC-Vanquish Logistics Co. Ltd. (龍卓物流有限
公司)
Vanquish Southern China Co. Ltd.
South-China International Logistics Co. Ltd.
50%
50%
Shenzhen SILC-Vanquish
Logistics Company Limited
(China-Foreign JV)
• Established in Apr 2007
• A China-Foreign Joint Venture owned by Vanquish
Holdings Ltd and South-China International Logistics
Co Ltd.
Company Background
• Vanquish Holdings Limited
– A HK-based company formed in 1990 with major businesses in
cross-boundary road transportation, warehousing and freight
forwarding.
– Provides expertise and personnel in warehousing management,
new project development and client negotiations.
• South-China International Logistics Co Ltd.
– A fully-owned subsidiary of Shenzhen International Holdings
(SZIHL), a HK-listed company (SEHK: 0152) with Shenzhen
Municipal Government as the biggest shareholder
– SZIHL focuses on investment in logistics-related and road
infrastructure projects
– Owns and manages South-China Int’l Logistics Centre (SILC)
SILC: Introduction
• Located in Longhua, Shenzhen (龍華區), near
Meilin Customs (35 minutes from Huanggang)
• One of the seven logistics parks under Shenzhen
Municipal Govt’s Outline Plan
• Total Development Area: 650,000 m2
• Total Investment: RMB $900m
SILC: Location and Transportation Network
Dist
(km)
Time
(min)
Huanggang
15
35
Shekou
20
40
Yantian
25
45
SZ Airport
28
55
Da Chan Bay
30
60
Kwai Chung
Terminal
45
75
HKIA
60
90
SILC: Facilities Map
Meiguan Expressway
SILC Entrance
China Customs and CIQ Offices
Container Depot
Truck Park (Cargo Interchange and Green Lane)
Bonded Warehouses
Strategic Advantages
• Located in the central of Shenzhen, wellconnected to air and sea port facilities in Hong
Kong and Shenzhen, boundary checkpoints and
industrial hinterland by expressway network
• Hence positioned itself as an “Inland Logistics
Port” supporting activities in the vicinity
• The first operator of “Green Lane”, a simplified
cross-boundary road transportation mechanism
for cargo movement.
Services: Empty Container Depot
• Total area: 100,000 m2
• Serving more than 20 shipping
lines
• Customers can pick up empty
containers for both Hong Kong
and Shenzhen shipments.
Services: Cargo Inter-change
• Total operating area:
30,000 m2
• Allowing cargo carried by
cross-boundary truck be
transferred into a local
truck for onward delivery
(to inland provinces)
• Sole operator authorized by
China Custom for such
function
Services: Bonded Warehouse
Total Development Area: 250,000 m2.
Currently Available Warehouse Area: 118,000 m2
Total Truck Dock for Load and Unloading: 500
Provides Export Supervised and Import Bonded
Warehouse services under Custom control
• Integrated Warehouse Management Services:
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Putaway/Storage
Inventory Management
Order Fulfillment/Picking
Packing and Value-added Services
• Online Warehouse Management System (WMS) allows
24/7, real-time monitoring of inventory
Services: Bonded Warehouse (cont’d)
• Export Supervised Warehouse (出口監管倉)
– Cargo entered into warehouse is “deemed export”
– Hence allow immediate processing of Tax Rebate
and FOREX collection
– Improves cash flow and raw materials turn-around
for factories
– Maximum storage period: 1 year
– Suitable for:
• Buyer Consolidation
• Regional Distribution Centre for foreign buyers
Services: Bonded Warehouse (cont’d)
• Import Bonded Warehouse (入口保税倉)
– Cargo stored is regarded as not yet entered into PRC
(for tax and regulatory purposes)
– Deferral of import duties and VAT (until cargo
release from the warehouse)
– Re-export of the Cargo can be arranged
– Maximum storage period: 2 years
Services: Bonded Warehouse (cont’d)
• Multi Country Consolidation (MCC)
– Mix-load of overseas goods and local goods for the
purposes of Re-export.
– Overseas goods are imported under BONDED status –
no duties or VAT due
– Local goods entered into warehouse are deemed
export – factories can process tax rebate and forex
collection immediately
– Allow value-added services to be performed in the
warehouse on 24/7 basis
– Maximum storage period: 1 year
Services: Logistics Value-added Services
• Services that complement customers’
warehousing, distribution and fulfillment needs
• Provided the operation does not alter the
nature of the goods (for example, from
unfinished goods to finished goods)
• Possibilities: Cargo Inspection, Pick and Pack,
Co-packing, Relabeling, Shrink-wrapping
Services: Green Lane and Green Express
• Part of the “Rapid Cross-Boundary Clearance” (
跨境快速通關) initiatives by China Custom
• Shifting of Custom function at boundary
checkpoint to stationed custom at SILC
• Make use of electronic manifest declaration and
electronic truck surveillance (GPS and e-seal)
• Green Lane for FCL operation and Green
Express for Loose Cargo operation
Cross-boundary Road Transportation:
Current Practices
CB Trucks stop & queue at
Huanggang check-point to
perform customs procedure
Mainland
CB Container Tractor
Factory
CB Ton Truck
HK
(Laden-in / empty-out)
(Empty-in / laden-out)
(Laden-in / empty-out)
(Empty-in / laden-out)
Exclusive Truck for small lot of shipment
Wastage (Potential Savings)
• Time wastage at check-point due to congestion
• Empty container / Ton truck trip
• Wastage on truck capacity due to exclusive ton truck operation
• Hkg CB Truck appointed all the way increase trucking cost
Green Lane – Basic Concept
Green Lane Truck
Local Truck
Hong Kong
Container Terminals
Mainland Factories
Electronic Surveillance:
• E-Seal
• Global Positioning System (GPS)
• Real-time Track & Trace
No need to
stop at
Huanggang
Open to the
whole tractor
community
Applies to
FCL cargo to
and from HK
Terminals
Green Express- Basic Concept
Airport Cargo Terminal
Green Lane Truck
Local Truck
Designated Cargo
Processing Point
Mainland
Shippers/ Factories
Electronic Surveillance:
Direct Custom Transit
• E-Seal
(直轉轉關模式)
• Global Positioning System (GPS)
• Real-time Track & Trace
No need to
stop at
Huanggang
Hub-to-Hub
Direct
Service
Cargo
Consolidation
saves cost
Green Lane and Green Express: Differences
Green Lane Phase 1
Phase 2 (Green Express)
FCL Cargo
LCL Cargo
Fixed Cargo Acceptance/Delivery
Location- HK Container Terminals
Multiple Cargo Pick-up/Drop-off
Points in Hong Kong
Target mainly sea-bound containers
Target Air Cargo and other crossboundary loose cargo
Pre-assigned Operator only (no need Pre-assigned Operator, Pre-assigned
for pre-assigned truck)
Truck
Scheme kicked off in June 2006
Service began in Oct 2008
Green Lane: Benefits
• Leveraging Lower Cost Mainland Truck for part
of the journey
• Materialize Cross-Boundary Laden-in, Laden-out
model – eliminates empty container reposition
trip
• Bypass the congested boundary checkpoint at
Huanggang – Time Saving
Green Express –Benefits
• Eliminate the need for chartered, dedicated
cross-boundary truck
• Further cost savings through cargo
consolidation – share the transportation cost
with other shippers
• Fixed schedule, fixed route service ensure
convenience and timeliness of cargo delivery
• Simple tiered pricing scheme based on
chargeable weights.
Case Study 1: Logistics VAS
• Client: A toy distributor
• Services used: Multi-Country Consolidation +
Value-added Services
• Description: Goods from both overseas and
local factories are assembled into a floor
display unit for direct shipment to retail stores
overseas
Case Study 1 (cont’d)
Assembly of Floor Display Unit
Co-packing of Products
Warehouse Storage
Finished Products on Display
Case Study 2: Inland Gate Service
• Client: Hong Kong Container Terminals
• Services used: Empty Container Depot and
Green Lane
• Description:
– Customer pick up empty containers at SILC and
transport to mainland factories to be filled
– Customer return laden containers at SILC – deemed
received by HK terminal (with terminal receipt
issued)
– Laden Container then transported back to HK for
export by HK Terminal via Green Lane
Case Study 2 (cont’d)
Empty Out
Consignee
Empty In
Shipper
Inland Truck (Optional)
Inland Truck (Optional)
Laden In
Hkg Contr Terminals
Inland Gate
Laden Out
Mainland
Import
Huanggang
HK
Export
GREEN
LANE Laden Out
Laden In
CB Truck
MTL, HIT,
Cosco HIT
THANK YOU!