Shanghai is the world’s largest port in total tonnage and is ranked third in container traffic, after only Singapore and Hong Kong. U.S.-China marine trade is expected to increase 12 to 15 percent annually, and by 2010, 35 percent of the world’s containers will be shipped from China. China has built more than 20,000 miles of expressways over the past 20 years, but speakers at the Schneider conference agreed that the development of China’s logistics industry has lagged behind the country’s expanding economic output and surging foreign trade.

“Modern supply chain management is needed to consolidate resources and optimize the efficiency of the circulation of goods in China,” said Mr. Liu Zhi, general director for Industrial Policy at China’s National Development and Reform Commission. At present, spending on logistics and transportation accounts for 18 to 20 percent of China’s gross domestic product (GDP), compared to eight to 10 percent for the United States.

For this reason, “China’s 11th Five-Year Plan gives top priority to the development of the logistics industry,” said Mr. Qian Yongchang, former Minister of Transportation and current chairman of the China Communications and Transport Association. While the transportation infrastructure is improving, development of the logistics industry is uneven across the large, fragmented market, and foreign expertise is welcomed by government authorities and domestic players. “Any company that can provide benchmark industry standards will probably be the winner,” said conference speaker Erxin Yao, managing director of OOCL Logistics, China.

“China’s logistics industry has clearly reached an inflection point, where advances in both infrastructure and the demands of the market require a higher level of cohesion among global players in the supply chain,” said Chris Lofgren, president and CEO of Schneider National, Inc.

Chairman Qian commented that the opportunities for foreign-invested logistics companies are significant, “We need to learn from foreign countries,” he said. “Cooperation between domestic and foreign transportation and logistics companies will be beneficial for both — a real ‘win-win’ situation.”

On the last day of the conference, Schneider National CEO Lofgren announced that Schneider and CMIC plan to sponsor the second in this logistics thought leadership conference series in Beijing in 2007.

Also speaking at the conference were:
Mai Boliang, president of China International Marine Containers Group
Zhang Zhigang, chairman of China Foreign Trade Center Group
Henry Ho, head of China research, UBS
Charles Zhang, executive vice president, Shanghai International Port Group
Xu Yahua, deputy general director, Department of Highway Administration, Ministry of Communications
Pierre Cohade, president, Asia Pacific, Goodyear
Gary Wu, vice president, Strategic Alliance, Volvo Group
Warren Wisnewski, chairman, South Asia and general manager, Greater Asia, Eastman Kodak
Steve Bertamini, chairman and CEO, GE China
Perry Chao, managing director, Asia Pacific, UPS Supply Chain Solutions

About Schneider National, Inc.
Schneider National, Inc. is a premier provider of truckload, logistics and intermodal services. Serving more than two-thirds of the FORTUNE 500® companies, Schneider National offers the broadest portfolio of services in the industry. The company’s transportation and logistics solutions include One-Way, Intermodal, Transportation Management, Dedicated and Bulk. With wholly owned subsidiaries Schneider Logistics, American Port Services and American Overseas Air Freight, Schneider National is the only truckload carrier to offer customers end-to-end domestic and international logistics solutions.

Headquartered in Green Bay, Wis., Schneider National has provided expert transportation and logistics solutions for more than 70 years. A $3.5 billion company, Schneider National conducts business in more than 28 countries in North America, Europe and Asia, and continues to grow its international service offerings. For more information about Schneider National visit www.schneider.com or call (800) 558-6767.

About The Logistics Institute at Georgia Tech
The Logistics Institute (TLI) provides comprehensive research and educational programs focused on total optimization of the global supply chain. TLI creates logistics knowledge through engineering research, disseminates logistics knowledge through education and applies new logistics knowledge through joint industry/academic practice. More than 25 companies participate in TLI’s outreach programs, including Leader in Logistics and the Supply Chain Executive Forum. For more information about The Logistics Institute, visit www.tli.gatech.edu or call (1-404) 894-2343.