SPG starts construction of the Jinan distribution center for consumer goods in North China. [Photo/WeChat account: Shandong-Port]

The groundbreaking ceremony for the Jinan distribution center for consumer goods in North China, to be operated by Shandong Port Group or SPG – one of the world's biggest port operators – was held on April 28 in the city, which is the capital of East China's Shandong province.

This facility is considered a key step for SPG to further integrate into the development of the provincial capital's economic circle and help Jinan become an international logistics hub.

It is also regarded as a concrete measure for SPG to seize the opportunities brought about by the changing consumer needs of the dual market – domestic and international markets – and to advance its shift from being a port operator that transports the means of production, to one which transports both the means of production and consumer goods. The aims is to better satisfy consumer demand, as well as serve the new development paradigm.

With the launch of the new consumer goods distribution center – the development agreement for which was signed by SPG and the Jinan government on May 20, last year – multi-modal transportation modes for sea, river, air and railway have established connectivity with logistics parks.

Also, a backbone for the region's distribution network, with Jinan and Qingdao as the two centers, is being formed. In this context, a major logistics thoroughfare radiating out to Shandong, North China and the regions along the Yellow River basin is expected to be built.

Jinan is strategically located at the intersection of the Circum-Bohai Sea Economic Zone and the Beijing-Shanghai Economic Axis. Boasting such geographical advantages as an east-west connection and a north-south linkage, its status as a comprehensive hub is apparent.

The decision to build a distribution center for consumer goods in Jinan was driven by the need to cater to growing consumer demand from the vast surrounding hinterland areas.

An inter-city delivery circle of same-day delivery and one-day delivery will be formed, with Jinan as the center. It will be done so by building three industrial clusters – a high-end cold chain logistics cluster, a cross-border trading cluster and a distribution center cluster for commodities. This will take advantage of a comprehensive logistics service network led by major railway lines, supported by shipping routes and extended by inland waterway transportation.

Taking such considerations into account – whether in terms of platforms, markets, logistics or policy and geographical location – Jinan was deemed to be the best place for SPG to establish a distribution center for consumer goods, with the most complete set of functions and the strongest capabilities.