Games provide gold in logistics
By Zhang Jin (China Daily)
Updated: 2004-06-18 10:50

The 29th Olympic Games, to be held in Beijing in 2008, will provide a golden chance for logistics enterprises throughout the world, as the Games are expected to generate a wealth of business.

Zhang Wenyuan, a professor at Beijing Jiaotong University, has completed a report analyzing features of Olympics-related logistics activities, predicting demand of logistics at the Beijing Games, and giving advice on how to organize them during the Games.

The Olympic Games are the world's biggest sports event. They fascinate athletes and spectators alike. And they call for a large amount of sports equipment.

Efficiency and management of logistics supplies are a major factor to ensure the Games are a success.

Logistics during the Games are enormous, posing a big challenge to Games organizers and a pool of logistics and transportation companies.

As an example, the 27th Sydney Olympics in 2000 comprised 28 sports events. A total of 10,305 athletes from 199 countries and about 5,100 delegated officials took part in the Games. They also attracted roughly 15,000 journalists from around the world.

The Games used 1.14 million pieces of sports instruments and equipment. Among them were 19,800 tennis balls, 1,200 cricket balls, 600 basketballs and 550 boxes of magnesium powder.

In addition, the main dining room in the Olympic Village supplied 60,000 portions of food daily.

Such a large amount of materials had to be provided everyday. This will definitely bring massive businesses for logistics companies.

According to the estimate from the Beijing Olympic Organizing Committee, the Beijing Games are expected to attract a total of 200,000 athletes, journalists and delegated officials from 200 countries.

Among them, there will be more than 20,000 athletes. The event will use a record amount of more than 1.2 million pieces of sports instruments and equipment.

Therefore, the logistics demand for the Beijing Games will outdo any of the Games in the history.

And most Games-related logistic activities usually take place during or shortly after the Games. The host city will face huge pressure in handling intense and urgent logistics demand.

It will be a great challenge for logistics players to deal with many heavy tasks in a short time.

Another factor that challenges logistics firms will be the uncertainty of Games demand.

Not all logistic activities can be precisely predicted or confirmed before the Games.

Take the 1996 Atlanta Games for example. What the Games organizers could confirm beforehand only accounted for 40 per cent of the total logistics activities. The remaining 60 per cent were unpredicted.

Such a circumstance requests logistics suppliers to be efficient and capable of coping with unpredicted demands.

In addition, Games-related logistics covers a wider variety of activities which differ according to time, places, service types and so on. Logistics suppliers should be aware of the complexity of the Games-related logistics and design different services tailored to the users.

Logistics demand for Games

Overall demand is a very important indicator, which reflects the general scale of the logistics generated by the Games and represents big business opportunities for logistics suppliers. The demand can be divided into three types and respectively analyzed.

Logistics demand directly related to the Games

Demand is generated by activities that are directly related to the Games, as shown in the chart, below. Demand is estimated to stand at 41.72 billion yuan (US$5.027 billion).

About 96.5 per cent of the demand happens before the Games. The logistics activities at the time are mainly to provide services for Games gymnasiums and equipment.

And demand is relatively easy to meet, as its timing is not that critical.

Roughly 98.2 per cent of the demand is based in Beijing.

So, logistics players should be keen to take part in projects before the Games and also projects in Beijing.

And about 1.25 billion yuan (US$151 million) worth of logistics is to happen during the Games. Logistics services at that time heavy duty and somewhat uncertain are very demanding. Only competitive players can vie for the business.

Logistics demand indirectly related to the Games

The Games will also promote a number of sectors such as tourism, catering and retail.

The prosperity of these sectors during and after the Games period will bring a wealth of business opportunities for logistics and transportation companies.

Logistic demand indirectly related to the Games will be worth about 490 million yuan (US$59.2 million), and happen during the Games. Among them, 71.3 per cent is related to catering and retail sectors. Logistics suppliers should be aware of this big market.

Waste disposal

The Games will demand concerted efforts to dispose of all kinds of waste during and shortly after the Games.

Demand, mainly happening during the Games, will have a probable market value of 1.08 billion yuan (US$130 million). Among them, 88.9 per cent of the waste will be garbage left by spectators and tourists. Logistics service providers should be keen to have a slice of this market.

Meanwhile, delivery pressures during the Beijing Games will also be intense.

At the 2000 Sydney Olympics, venue logistics managers began work two weeks before the Games opened. Their jobs finished when the event was over.

Given that the logistics work of the Beijing Games lasts for 30 days 14 days before the Games plus 16 days of the Games porters will have to transport a total of 75,000 tons of goods and equipment.

Among them, 32,188 tons of materials are expected to be sent to the central part of the Olympic Park, for the use of events.

To meet delivery demand, the Games will need 1,200 hand carts, 171 forklifts, 525 cranes, 150 trucks and storage space covering 150,000 to 200,000 square metres.

The great demand will not only provide great business chances for logistics firms but also for leasing companies in the transportation equipment businesses.

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