Logistics firms to serve clients worldwide

Although they are exempt from certain taxes, logistics firms have been hampered until now by having to go through time-consuming customs procedures, which has limited their efficiency.

The Shanghai FTZ changes all this as customs authorities no longer serve as a watchdog poring over the certificates of companies that operate within its bounds.

Goods can also stay there without any time restrictions. The removal of standard customs and quarantine procedures will save companies considerable time and money.

As a result, logistical costs will fall by at least 30 percent, making it possible for companies in this industry to offer more value-added services and products.

The past three decades have injected new life into the Chinese economy, and the "new opening-up" should usher in deep-seated reforms for several sectors.

By providing an open, fair and transparent environment for both domestic and international players, the FTZ will operate along the principle of "survival of the fittest," pushing domestic logistics companies to speed up their consolidation and upgrade processes to stay competitive.

Chinese logistics firms have all the potential ingredients for success. The central and local governments have paid much attention to supporting the industry, and China's vast market and huge demand will guarantee that the sector sees sustained growth.