Container Investment Needed to Meet China’s Project Demands

China’s remarkable journey, from a nation that was entirely dependent on international trade to a domestic-based economy, continues to inspire infrastructure projects in the country; with many more endeavors lined up this year. The National Development and Reform Commission (NDRC), the top most planning unit in China, announced that the country needs more subways, highways and sewage plants. It is believed that the undertaking of various infrastructure construction projects, will help to off-set the slowdown in the manufacturing and trade sector, by increasing investment in certain segments of the economy.

During the country’s recent economic slowdown, the Chinese government has been pro-active and taken some counter-cyclical measures to address domestic needs, by applying a meaningful fiscal stimulus plan; rather than a monetary policy option taken by the likes of the US and euro zone. As China is in the midst of a power change in November 2012, all of these projects are viewed by officials in Beijing, as an opportunity to re-stimulate an economy and its population; with the introduction of large capital-intensive infrastructure projects. In fact, economist estimated that the total value of infra-structure projects approved, have reached approximately 1 trillion yuan ($158 billion).

These ongoing infrastructure improvements to ports, railways, roads, warehouses, etc., will encourage shipping and logistics companies, to become key contributors to the development of domestic trade. Furthermore, the growth of containerized cargo traffic is expected to grow exponentially, when the development of these infrastructure projects begin. As well, analysts expect that it will also create a rising need for investment in shipping containers, to meet the demand for the continuous transport of raw materials and workers, to different construction sites and infra-structure projects; throughout China.

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