Logistics costs account for 18% GDP

China will become the world's largest logistics market in 2016, according to CEVA Logistics (CEVA), the world's fourth largest third-party logistics company, reported xinhua08.com on Thursday.

According to the report, currently, China's logistics costs account for 18 percent of the GDP, equivalent to almost twice the amount in Europe and America.

China's domestic logistics is plagued with difficulties, including the high cost and credibility of local logistics providers and the quality of transport, according to 2012 State of Logistics China Survey by CEVA.

Nonetheless, Martin Thaysen, executive vice president of CEVA, said that China has intensified efforts put into the infrastructure construction in recent years, which will greatly benefit the logistics industry.

Another positive factor is that China is taking a series of measures to reduce road tolls, he added.

The government has introduced a series of policies to improve logistics industry's operational efficiency and reduce the operating costs,

Over the past few years, China's customs and the building of the Free Trade Zone have made great strides, Thaysen added.