Sources from the Beijing Commerce Bureau revealed Thursday that the capital city's logistics parks are actively in contact with Japan-based Nippon Yusen, YAMATO Transport Co Ltd, SAGAWA and some wholesaling enterprises to set up cooperation deals.

However, the bureau did not disclose the details and timetable of the negotiations.

"We are attracting more Hong Kong operators to participate into the capital city's logistics network construction," said Li Zhao, a director with the bureau.

One example, he says, is the deal between the Beijing-based Jingtai Holding Company and Hong Kong-based Kerry Group on the Jingtai Logistics Port, valued at 10 billion yuan (US$1.2 billion) and located in southeastern Beijing.

According to Chen Jian, a researcher with the policy study office of the Beijing municipal government, Hong Kong enterprises boast rich experience in the logistics sector, and are eager to grasp the chance to enter the mainland market particularly since the Closer Economic Partnership Arrangements (CEPA) took effect earlier this year.

So far, Beijing is making efforts to build four logistics parks across the city.

In addition to Jingtai, the other three are in Tongzhou Majuqiao, Fangshan Liangxiang and Shunyi's International Airport.

"A logistics network established in line with international standards will meet the requirements of the 2008 Olympic Games and promote the municipality's sustainability in the long run," said Lu Hao, Beijing's deputy mayor.

Besides building a complete logistics network, Beijing is speeding up the pace on establishing commercial spaces in residential communities.

As proof, 500 convenience stores and chain stores are to open this year.

Li said that world wide convenience store king 7-11 and France-based Champion, a fresh food chain store operator, have received approval from the central government to set up outlets in the capital city.

"A series of domestic counterparts, involving Shanghai Lianhua and Hualian as well as local Wumei and Superchain, will further expand their chains in Beijing's residential communities," said Li.

The move is to meet the ever-increasing demand from local citizens along with the sharp growth of newly built communities in urban Beijing and the improvement in people's living standards, Chen said.

(China Daily February 13, 2004)