one. However, infrastructure for domestic logistics is deficient compared to that
for the global arena. China must therefore invest in its own logistics market to
ensure the success of domestic developments. Taking into account these requirements,
in 2009 China’s government approved the construction of seventeen free
trade logistics centers in the northwest region (Seventeen bonded logistics centers
are approved 2009). Xi’an set up a state-level bonded logistics center in 2010;
Xi’an can now extend its logistics service with a port function, via an intermodal
connection to eastern sea ports (e.g., Tianjin).
International logistics companies also see such potential developments (Xi’an
bonded logistics center 2010). For example, UPS has submitted an application to
the State Post Bureau of China for a domestic license. Once approved by China’s
government, UPS will roll out a next-day delivery service and second- and thirdday
delivery products. UPS believes the Chinese domestic market could be as
large as 5 million packages per day. (By comparison, in countries other than China
and the US, UPS delivered a total of only 1.2 million packages daily in 2009.)
(UPS eyeing China domestic parcel service market 2010).