Market Report, "China Freight Transport Report Q3 2011", published

July 6, 2011 - PRLog -- This year, China is seeing continued growth across its freight transport sector, after the robust recovery in China's trade and freight volumes in 2010.

The main driver for growth is the country's international trade with our Country Risk desk forecasting a real increase in China's total trade of 5.4% in 2011 following last year's recovery-fuelled growth, which was estimated at 28.9%.

Road freight continues to dominate the sector, with tonnage carried projected to grow by 4.9% in 2011; however, we note that China's rail network sector is undergoing a major expansion both domestically an abroad with the next few years expected to see a growth in rail freight links to neighbouring countries. We caution that the growth in China's rail network threatens the market share of the country's airfreight sector which has been struggling with overcapacity in recent months. Nevertheless, we forecast growth in China's air cargo volumes to increase by 5.9% in 2011 partly as a result of companies expanding direct flight routes between China and Europe.

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Full Report Details at
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Headline Industry Data

* 2011 air freight tonnage is expected to grow by 5.9%;
 *  2011 rail freight is forecast to grow by 4.4%;
 *  2011 Port of Shanghai throughput is forecast to grow by 4.5%;
 *  2011 road freight is forecast to grow by 4.9%;
 *  2011 total real trade growth is forecast by 5.4%.


Key Industry Trends

Rail Sector Flexes Muscle Overseas

In April rail freight operator DB Schenker announced the testing a new 10,300km freight rail line between China and Germany. A container train was run from Chongqing in China and arrived in Duisburg, Germany, after 16 days, passing through Kazakhstan, Russia, Belarus and Poland on the way. The line is expected to half ocean transit time between China and Germany. In a separate announcement, the Chinese government was reported to be involved in a project to link the Pakistani port of Gwadar to Pakistan's national rail network.

Air Operators Resilient Despite Shrinking Market Share

The expansion of China's rail network has raised concerns as to the long-term prospects for the country's airlines, both from a freight and passenger perspective. However, the recent indicators of business sentiment within the industry have been positive with several new air freight services launched over the course of Q211. In April Air China Cargo marked the opening of a new freighter flight service from North China to Europe, becoming the first airline to offer the freighter service from Dalian to Europe.

Risks To Outlook

Risks to China's freight transport sector are primarily to the downside, with our growth projections for all modes contingent on the strength of the country's international trade volumes. Despite encouraging signs of recovery in consumer demand in China's main export markets - the US and eurozone - we caution that there is potential for contraction in trade with a number of the country's main bilateral trade partners, not least Japan whose economy continues to fell the effects of March's earthquake. The possibility of a deterioration in the economic climate in the eurozone remains a further concern with parts of the region still at risk of credit default, contagion from which threatens to undermine the recovery in major consumer markets such as France and Germany.

Report Table of Contents:

Executive Summary
- Headline Industry Data
- Key Industry Trends
SWOT Analysis
- China Freight Transport SWOT
- China Political SWOT
- China Economic SWOT
- China Business Environment SWOT
Industry Trends and Developments
- Multimodal/Logistics
- Road
- Rail
- Air
- Maritime
Market Overview
Industry Forecast
- Air
- Table: Air Freight, 2008-2015
- Maritime
- Table: Maritime Freight - Throughput, 2008-2015 ('000 tonnes)
- Rail
- Table: Rail Freight, 2008-2015
- Road
- Table: Road Freight, 2008-2015
- Inland Waterways
- Table: Inland Waterway Freight, 2008-2015
- Trade
- Table: Trade Overview, 2008-2015
- Table: Key Trade Indicators, 2008-2015
- Table: China's Main Import Partner, 2002-2009(US$mn)
- Table: China's Main Export Partner, 2002-2009 (US$mn)
Political Outlook
- Domestic Politics
Macroeconomic Outlook
- Table: China -- Economic Activity
Company Profiles
- CR Intermodal
- China Railway Container Transport Corporation (CRCTC)
- China Southern (Cargo)
- China Airlines Cargo (CAC)
- Daqin Railway Company
- Jade Cargo International
- COSCO Container Lines Company Limited (COSCON)
- China Shipping Container Line (CSCL)
- COSCO (Dry Bulk)
- Sinotrans Group
Country Snapshot: China Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Manufacturing Wages, 2005-2012
BMI Methodology
- How We Generate Our Industry Forecasts
- Transport Industry
- Sources

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.