China Joins The World Logistics Passport Network
Several prominent Chinese businesses and trade platforms have joined the World Logistics Passport network, with Memorandum of Understanding being signed with China’s State-owned Fujian Port Group, which joins the freight loyalty program as a Partner. The WLP has also agreed to join the Chinese Silk Road Maritime Alliance and will provide Chinese businesses with faster and more cost-efficient access to markets in Asia, Latin America, the Middle East and across Africa. Traders and freight forwarders can achieve average annual increases in trade volume by 5-10% through utilizing the facility.
The World Logistics Passport (WLP) is a global, private sector-led, initiative designed to smooth the flow of global trade, unlock market access through the creation of new trade routes and provides economic efficiencies to members. It is headquartered in Dubai.
The Silk Road Maritime Alliance (SRMA) is an alliance of 99 ports and 27 countries. The SRMA was launched in December 2018 in Fujian Province and is part of the China’s Belt and Road Initiative, aiming to “build an efficient and stable service ecosystem of continued growth by integrating advantageous resources”.
The WLP offers benefits for the movement of high value, low weight goods. Chinese industries that stand to gain most from participation in the program include broadcasting equipment, computers, office machine parts, communications, and semiconductor devices. China is already the world’s largest exporter in all these product categories – and is likely to be underlined in 2022 by participation within the WLP.
The inclusion of China in the World Logistics Passport strengthens the programme’s position across Asia with Hubs in India, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.
Sultan Ahmed Bin Sulayem, Chairman of Dubai Ports, Customs and Freezone Corporation (PCFC), which owns and runs the WLP program globally, said: “Bringing the WLP to the world’s second largest economy is a huge development. Efficient supply chains make products and services more competitive and selling to more markets increases economic resilience. The WLP helps deliver this, whilst also strengthening bilateral relations between the People’s Republic of China and the United Arab Emirates.”
Chinese traders and freight forwarders who become Members of the WLP will have access to the different benefits offered by WLP Partners, who include DP World, Thai Airways and Emirates SkyCargo. Example benefits include fast-tracking of cargo, reducing customs clearance times, and removing administrative costs.
Mr. Zhiping Chen, Secretary of Party Committee and Chairman, Fujian Port Group, said: “The benefit of the WLP, as the world’s first multi-modal global freight loyalty scheme, to businesses in China is a reduction in their supply chain costs, and making moving goods and services faster and more efficient. This news will help our country grow the economy and create new jobs.”
The Memorandum of Understanding was signed at a virtual ceremony by Mr. Zhiping Chen, Secretary of Party Committee and Chairman, Fujian Port Group and Sultan Ahmed Bin Sulayem, Chairman of PCFC. The signing event took place on December 7 in Fujian.
Chris Devonshire-Ellis is the Chairman of Dezan Shira & Associates. The firm assists British and Foreign Investment into Asia and has 28 offices throughout China, India, the ASEAN nations and Russia. For strategic and business intelligence concerning China’s Belt & Road Initiative please email email@example.com or visit us at www.dezshira.com