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					Post-earthquake Chengdu
Logistics Infrastructure
Facilities Report
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Table of Contents
Overview of the Research on Post-earthquake
Chengdu Logistics Warehousing Facilities                  35
The Study of the Earthquake’s Impact on Chengdu
Logistics Warehousing Facilities                          36
Chengdu Logistics Warehousing Facilities: Today
and Tomorrow                                              37
Landscape of Chengdu Logistics Warehousing Facilities     37
‘Three Parks and Four Centers’: The Intensive Logistics
Development Zones                                         38
Classification and Proportion of Current Chengdu
Logistics Warehousing Facilities                          40
Storage and Demand of Logisitcs Warehousing Facilities    42
Rental Trend of Logistics Warehousing Facilities          43
Asset Performance of Logistics Warehousing Facilities     44
Industry Segmentation of Logistics Warehousing Facility
End-users                                                 45
A Shift in Functions: From Warehousing to Value-added
Services                                                  46
Appendix One: Macroeconomic Data of Chengdu               47
GDP of Chengdu: 2003–2007                                 47
The Volume of Social Retail Consumption: 2003–2007        47
FDI in Chengdu: 2003-2007                                 48
Railway, Road and Air Freights: 2003–2007                 49
Appendix Two: Basic Technical Standards of Modern
Warehousing Facilities                                    51
Preface
As the capital of Sichuan Province, Chengdu is the nation’s southwest
centre of technology, commerce and finance, as well as the regional hub
of transportation and communication. The ‘West Development’ policy
has brought Chengdu onto the top of Sichuan’s list of agenda in terms of
overall competitiveness
Given the goal of improving Chengdu as the integrated transportation
hub for Greater China, a plan to develop the city’s modern logistics
infrastructure has been drafted upon the joint request of and by
the government of the municipality of Chengdu and that of Sichuan
Province. Dating back to 2005, Chengdu has already drafted its logistics
development plan. Based on this, Chengdu was designed to develop
multi-purpose transportation, pivoting on air freight and railway freight.
The bonded logistics network will develop city distribution and inter-city,
while expanding on short-distance transportation, depending on road
transportation.
With accelerated execution of the plan, projects like ‘3 Parks and 4
Centres’ are currently heading into the completion phase. Chengdu
is becoming increasingly popular as the city of choice for logistics
and other industry related companies - for investing or locating their
regional distribution centres. The launch of ‘Chengdu Railway Container
Centre Station’ on 3 July this year, one of the key post-earthquake
reconstruction projects, has shifted the city’s logistics development up to
a new high.
Detail research and analysis to the city’s logistics infrastructure is a
significantly step for logistics companies looking into entering Chengdu
and western China market. To help investors and others understand
Chengdu’s rapidly growing logistics infrastructure, the Chengdu Logistics
Office and Jones Lang LaSalle have published ‘Post-earthquake
Chengdu Logistics Infrastructure Facilities Report’. We hope you find this
report as a useful guide to investing in Chengdu logistics market.

Thanks,
Chen Zhongwei
Director
Chengdu Modern Logistics Office
Preface
First and foremost, I would like to express our sincere gratitude to
People’s Government of Chengdu Municipality for their appointment
of Jones Lang LaSalle to produce this report, special thanks must
go to Chengdu Logistics Association Office and Shanghai OrientCity
Investment Management Co Ltd for their support and collaboration on
this report.
Six months since the Wenchuan Earthquake, May 12th 2008, the
need to complete local restoration has propelled us to look deep into
the impact of Chengdu’s earthquake as well as the whole logistics
infrastructure across Sichuan. While conducting the study, many were
touched by the confident and positive-thinking displayed by Sichuan’s
people, despite all the lives the earthquake has claimed. Meanwhile,
the city’s determination and speedy execution of the logistics
development plan reaffirmed Chengdu as the centre for western China
logistics development.
Sincerely hope that the report is helpful to better understand and
develop in Chengdu’s logistics infrastructure market. Your participation
is highly appreciated!


Thanks,

Wonder Wang
Head of Logistics and Infrastructure
Jones Lang LaSalle, China
7
8
l

l




    9
                         F
                     E


     A
             B




         C
                 G
         D




10
10          ≥0.7
              ≥30%
8.5         ≥0.7
              ≥30%




8.5         ≥0.7
              ≥30%




15          ≥0.7
              ≥30%



12.5        ≥0.7
              ≥30%
23          ≥0.7
              ≥30%



23          ≥0.7
              ≥30%




       AG




                     11
            50




                       ≥0.7               ≥0.6

                       ≥0.7               ≥0.6

     ≥1.2              ≥0.8               ≥0.7

      9.0
                                    30%




                              24%



                 76%




12
24




9               9

3               3



         2-5%           2%

     2              2




                             13
                 %
     1,800,000       35.0
     1,600,000
                     30.0
     1,400,000
                     25.0
     1,200,000
     1,000,000       20.0
      800,000        15.0
      600,000
                     10.0
      400,000
      200,000        5.0

            0        0.0




14
                                                        %
                                                             30.0
0.90
                                                             25.0

                                                             20.0
0.60
                                                             15.0

0.30                                                         10.0

                                                             5.0

0.00                                                         0.0
       2005   2006   2007   2008   2009(F) 2010(F) 2011(F)




                                                                    15
                               %
     4,500                         12.0
     4,000
                                   10.0
     3,500
     3,000                         8.0
     2,500
                                   6.0
     2,000
     1,500                         4.0
     1,000
                                   2.0
      500
        0                          0.0
             (F)   (F)   (F)




16
      1%   5%

                14%




                      15%


65%




                            17
     2003 2007
     2003 2007
                                                                %
           3,500                                       15.30%       15.50

           3,000                                                    15.00
                                              13.80%                14.50
           2,500
                                                                    14.00
           2,000            13.60%   13.50%
                                                                    13.50
           1,500   13.00%
                                                                    13.00
           1,000
                                                                    12.50
            500                                                     12.00
              0                                                     11.50
                   2003     2004     2005      2006     2007




18
2003 2007
2003 2007
                                                                           %
    1,600                                                                      20.00
                                                                  17.49%
    1,400                                                                      18.00
                                      14.19%        14.81%                     16.00
    1,200              13.50%
                                                                               14.00
    1,000                                                                      12.00
            9.30%
     800                                                                       10.00
     600                                                                       8.00
                                                                               6.00
     400
                                                                               4.00
     200                                                                       2.00
       0                                                                       0.00




2003 2007
2003 2007
                                                                           %
       12                                 67.17%                               70.00

       10                                                    50.20%            50.00
        8                                      36.76%
                                                                               30.00
        6
              15.80%
                                                                               10.00
        4

        2                                                                      -10.00
                            -21.88%
        0                                                                      -30.00




                                                                                        19
     2003 2007
     2003 2007
                                                           %
        15,000                                                 180.00
                         162.21%
                                                               160.00
        12,000                                                 140.00
                                                               120.00
         9,000
                                                               100.00
                                                               80.00
         6,000
                                                               60.00
         3,000                                                 40.00
                 9.03%                     5.24%   4.90%       20.00
                                   1.98%
            0                                                  0.00




20
2003 2007
                                                                               %
   20,000   12.77%                                                                 14.00

                                                                                   12.00
   16,000
                                                                                   10.00
                                                                          8.67%
   12,000                                                                          8.00
                                              6.20%
    8,000                                                    5.70%                 6.00
                      4.10%                                                        4.00
    4,000
                                                                                   2.00

       0                                                                           0.00




2003 2007
                                                                           %
      25                                                                       30.00
                          25.41%
      20                                                                       25.00

                                                                               20.00
      15
             16.19%                  17.65%
                                                                               15.00
      10
                                                  11.11%         11.50%        10.00
        5                                                                      5.00

        0                                                                      0.00
             2003             2004    2005            2006       2007




                                                                                           21
22
    ≤




X




        23
24
X

        X

                X

    X

            X

        X




                    25
     X   X




26
27
28
29
     X




30
31
32
x   x


        x




            33
             x




         x
     x




34
Overview of the Research on Post Earthquake Logistics
Chengdu Warehousing Facilities
As verified by the China Earthquake Administration, an earthquake measuring
8.0 on the Richter scale hit Wenchuan County (31° north latitude/103.4° west
longitude) of Sichuan Province at 14:28:1’42 (local time) on 12 May 2008.
Tremors were felt across major cities in China such as Beijing, Shanghai and
Tianjin.
Until 27 May, the result of a survey about the damage caused by the
earthquake, which 1,141 WFOEs (Wholly Foreign Owned Enterprise) in
Chengdu joined (sampling rate: 84.02% of all operating companies), showed
that the total damage caused by Sichuan Earthquake has reached RMB
567.13 million. However, the WFOEs located in the areas other than the
quake-stricken ones, such as Du Jiang Yan and Peng Zhou, have only
suffered a moderate loss. Nine hundred and twenty two surveyed companies
(80.81% of the sample) have already resumed their operations. In Chengdu
Hi-tech Industrial Development Zone (CDHT), 157 of the total 159 companies
(98.74%) have resumed operations, among which, all of the 23 Fortune 500
corporations have been re-established. In Chengdu Economic and Technology
Development Zone (CDETDZ), 57 of the total 60 companies (95%) have also
restarted their production.
Undoubtedly, the earthquake will shed huge negative impact on the city’s
economy. This report will study the impact with emphasis laid on the current
and future logistics infrastructure map of Chengdu.
After the earthquake, Jones Lang LaSalle’s Chengdu office conducted a
research of logistics warehousing facilities clustering at the centre of Chengdu
as well as ‘the central ring’ of the city. The subject of the research includes the
current facilities of logistics warehousing developers and integrated logistics
services providers, and a focus is laid on public warehousing facilities as well
as BTS warehouses. Self-built, self-use and special warehousing facilities,
such as bonded logistics warehouses, warehouses for dangerous goods and
warehouses for freeze and cold storage, have been excluded.

Note: The city can be divided into three rings starting from the downtown core. The central ring refers to
Ring 2 between the very core of the city and the outer ring. Ring 1 includes Jinjiang District, Chenghua
District, Wuhou District, Qingyang District, Jinniu District and High-tech Industrial Zone. Ring 2 includes
Pi County, Wenjiang District, Shuangliu District, Long Quan Yi District and Xindu District. Ring 3 includes
Qing Bai Jiang District, Xinjin County, Pujiang County, Qionglai City, Dayi County, Chongzhou City and
Du Jiang Yan City.

                                                                                                              35
     The Study of the Earthquake’s Impact on Chengdu Logistics
     Warehousing Facilities
     In compliance with the planning of Chengdu’s modern logistics market in
     2005, three international logistics hubs and four regional integrated logistics
     centres are to be established in Chengdu. Aside from these, logistics service
     stations are scheduled to be set up in selected areas such as shopping
     malls, specialised markets, where big manufacturers concentrate areas,
     industrial-dense zones and major transportation facilities, where an intensive
     development of logistics projects can be expected. Therefore, the research
     will be segmented according to the development timeline into ‘pre-2005’ and
     ‘post-2005’.




     The pre-2005 logistics warehousing facility development zone refers to the
     centre of Chengdu, where most buildings followed the concrete-brick structure
     and were completed from the 1980s to the beginning of the 21st century. It
     has also been found that these facilities only suffered from small fissures on
     the ground after the earthquake, and no damage to either interior or exterior
     structure could be detected.




     The post-2005 logistics warehousing facilities adopted steel or pre-engineered
     steel as the main construction structure and were largely built within the period
     between 2005 and 2008. These facilities were zoned into the city’s planned
     areas of intensive logistics development, which were less affected by the

36
earthquake, since geographically speaking, these areas are not earthquake-
stricken ones. Some projects under construction were partially damaged,
which led to no other result than postponement.
The research result confirms that the impact brought by the earthquake on
Chengdu’s logistics infrastructure facilities is moderate, and there is a reason
to believe that a burst of supply of high-quality facilities that meet basic
technical standards will come out as the demand level goes up.


Chengdu Logistics Warehousing Facilities:
Today and Tomorrow
Landscape of Chengdu Logistics Warehousing Facilities
Figure 1. Map of Chengdu Logistics Warehousing Infrastructure




l   Blue points indicate areas where previously built facilities are concentrated.
l   Red points indicate areas where warehouses following modern technical standards are concentrated.

Since the hubs of ex-Sichuan roads are largely located in the north-east of
Chengdu where traditional road transportation stations and railway marshalling
stations are grouped, previously built logistics warehousing facilities have
made a dense presence in the Chenghua District and Jinniu District, the two
districts in the downtown core of Sanhuan Road.

                                                                                                        37
     Upon the planning of Chengdu’s logistics market as well as the process of
     relocating road transportation stations and railways marshalling stations to
     Ring2 and Ring3, current logistics companies and the newcomers in the
     logistics market will swarm into the above areas with a full deployment of
     their capital to develop facilities. Except for the above areas, two national-
     level development zones (Chengdu Hi-tech Industrial Development Zone and
     Chengdu Economic and Technology Development Zone) will also be hot zones
     for these market players to develop their facility.


     ‘Three Parks and Four Centres’: The Intensive Logistics
     Development Zones
     Figure 2. ‘Three Parks and Four Centres’: The Intensive Logistics Development Zones




     A Bonded Logistics Center      D Shuangliu Logistics Center Park     G Longquan Logistics Center
     B Xindu Logistics Center       E Railway Bulk Logistics Park
     C Chengdu Air Logistics Park   F Chengdu Int’l Container Logistics

     Three Parks: Chengdu International Container Logistics Park and Railway Bulk
     Logistics Park, both located in Qing Bai Jiang District; Chengdu Air Logistics
     Park in Shuang Liu County


38
Four Centres: Bonded Logistics Centre located in High-tech Zone, Xindu
Logistics Centre located in Xindu District, Longquan Logistics Centre located
in Longquan Yi District and Shuangliu Logistics Centre located in Shuangliu
County
The detailed description of ‘Three Parks, Four Centres’ is available in the table
below:
Table 1. Detailed Description of ‘Three Parks, Four Centres’

                    Away from Highway system              Railway system    Planning
                  downtown(km) nearby                     nearby
 Xindu                10       Chengdu-Mianyang           Baoji-Chengdu     Plot Ratio: ≥0.7
 Logistics                     Express, City-             Railway           Construction
 Centre                        encompassed Highway                          Coverage: ≥30%

 Chengdu Air          8.5      Chengdu-Ya’an Express,     Chengdu-          Plot Ratio: ≥0.7
 Logistics Park                Chengdu-Leshan Express,    Kunming Railway   Construction
                               City-encompassed                             Coverage: ≥30%
                               Highway, Airport Highway
                               and 213 National Highway
 Shuangliu            8.5      Chengdu-Ya’an Express,     Chengdu-          Plot Ratio: ≥0.7
 Logistics                     Chengdu-Leshan Express,    Kunming Railway   Construction
 Centre                        City-encompassed                             Coverage: ≥30%
                               Highway, Airport Highway
                               and 213 National Highway
 Bonded               15       Chengdu-Du Jiang           None              Plot Ratio: ≥0.7
 Logistics                     Yan Express, City-                           Construction
 Centre                        encompassed Highway                          Coverage: ≥30%
                               and 213 National Highway
 Longquan             12.5     Chengdu-Chongqing          Chengdu-          Plot Ratio: ≥0.7
 Logistics                     Highway, City-             Chongqing         Construction
 Centre                        encompassed Highway        Express Railway   Coverage: ≥30%

 Qing Bai Jiang       23       Chengdu-Mianyang           Dazhou-Chengdu    Plot Ratio: ≥0.7
 Railway Bulk                  Highway, Chengdu-Qing      Railway,          Construction
 Logistics                     Bai Jiang Highway,         Chengdu-          Coverage: ≥30%
 Centre                        Chengdu-Bazhou Highway     Chongqing
                               and 108 National Highway   Railway
 Chengdu              23       Chengdu-Mianyang           Dazhou-Chengdu    Plot Ratio: ≥0.7
 International                 Highway, Chengdu-Qing      Railway,          Construction
 Container                     Bai Jiang Highway,         Chengdu-          Coverage: ≥30%
 Logistics Park                Chengdu-Bazhou Highway     Chongqing
                               and 108 National Highway   Railway




                                                                                               39
     The logistics infrastructure facility developers as well as integrated logistics service
     providers who have entered the parks include: ProLogis, China Merchant Logistics,
     Yuancheng Logistics, Blogis, China Logistics, Transfar Logistics, Richland Holdings,
     Kerry Logistics, Zenith Logistics, AG, Xinjie Logistics, China Post and Sinotrans.
     Meanwhile, People’s Government of Chengdu Municipality has planned 50
     logistics service stations. The standards are listed in Table 2:

     Table 2. Plot Ratio Floor of Logistics Land

      Plot Ratio Floor of Logistics Land
                                    Within Sanhuan Road        From Sanhuan Road to            Ring3
                                                               Ring2 (including Ring2)
      Logistics Park                Forbidden                  ≥0.7                            ≥0.6

      Logistics Centre              Forbidden                  ≥0.7                            ≥0.6

      Logistics Service Station     ≥1.2                       ≥0.8                            ≥0.7

     Note: Construction coverage of logistics parks, centres, and service stations shall be above 30%.



     Among these, the logistics service stations developed by ProLogis, Frasers
     Group and Hai Pa Wang have been located in Chenghua District, Wuhou
     District and Pi County.


     Classification and Proportionate of Current Chengdu
     Logistics Warehousing Facilities:
     The subject of this part of the research is public general warehousing facilities,
     which are further divided into two types: those following basic standards of
     modern warehousing logistics facilities and those falling short.
     As Figure 3 shows, public general warehouses that follow basic technical
     standards in the Chengdu logistics market only cover 24% of the total facility
     area (870,000 sqm) or a total of 210,000 sqm. This means that the Chengdu
     logistics warehousing market is still on its embryo stage. With support from the
     government and efforts made by experienced international logistics developers
     and operators, the market will ensure a fast growth in the next one or two
     years, and the market coverage rate as well as demand will also witness a
     noticeable increase.


40
Figure 3. Classification and Proportion of Current Chengdu Warehousing Facilities




                                                                          24%



                                                              76%
                 The Standard Warehouse
                 The Non-Standard Warehouse


Source: Jones Lang LaSalle



Table 3 compares the two types of facilities:

Table 3. Comparison of Two Types of Warehousing Facilities

                                Those following modern            Those falling short of modern
                                logistics warehousing basic       logistics warehousing basic
                                technical standards               technical standards
 Security system                24-hour security                  Unavailable

 Construction type              Pre-engineered structure/         Concrete-brick structure
                                Coloured steel structure
 Industrial sectional door      Available                         Unavailable
 and loading platform
 Canopy                         Available                         Unavailable


 Forklift charging area         Available                         Unavailable


 Clear height                   9m                                Below 9 m


 Loading capacity               3 tonnes per sqm                  Below 3 tonnes per sqm


 Fire protection system         ESFR                              Fire hydrant


 Roof lighting                  Lighting bars, 2-5% of the        No lighting bars, or less than 2%
                                roof area                         of the roof area
 Ventilation system             Air change rate: twice per hour   No ventilation system or fewer
                                                                  than twice per hour



                                                                                                      41
     (Warehouses that do not follow basic modern logistics facility standards)




     (Warehouses that follow basic modern logistics facility standards)



     Storage and Demand of Logistics Warehousing Facilities
     Figure 4 shows the storage and annual new supply of Chengdu logistics
     warehousing facilities from 2006 to 2011. The market saw a meager supply of
     logistics warehousing facilities from 2005 to 2008 reflected by a vacancy rate
     lower than 10% in 2008. The statistics of contracted projects of Chengdu’s
     logistics infrastructure show that the supply of logistics warehousing facilities
     will continue to soar in 2009 and 2010. This burst of supply includes the
     facilities that comply with basic technical standards. With the soaring supply,
     vacancy rate is expected to rise and be kept under 30% from 2009 to 2010,
     and will slump to 16.1% in 2011.
     In accordance with the city’s planning of intensive logistics development
     zones, those logistics warehousing facilities currently out of the zones planned
     for intensive logistics development will be grouped into the zones and those
     facilities falling short of the basic standards will be taken off from the market.
     Therefore, an obvious decline in the amount of low-quality warehouses will
     take place starting 2009.

42
Figure 4. Warehouse Stock and Vacancy Rate

             Sqm                                                     %
     1,800,000                                                           35.0%
     1,600,000
                                                                         30.0%
     1,400,000
                                                                         25.0%
     1,200,000
     1,000,000                                                           20.0%
       800,000                                                           15.0%
       600,000
                                                                         10.0%
       400,000
       200,000                                                           5.0%

             0                                                           0.0%

                   New Supply   Stock        Vacancy Rate

Source: Jones Lang LaSalle

Meanwhile, with a developing Chengdu economy, an expanding domestic
retail market and a bigger presence of internationally famous retailers and
manufacturers moving into Chengdu, the demand for high-quality logistics
warehousing facilities will sustain its increase. In addition, attention has been
paid to construction safety right after the earthquake, which also creates
demand for high-quality logistics warehousing facilities. A post-earthquake
interview conducted with tenants of low-quality facilities shows that 30%
of them will shift to high-quality facilities when their current term expires.
Moreover, about 60% of the city’s logistics warehousing facility tenants would
take anti-earthquake strength as the key factor when choosing a warehouse.
In conclusion, the two years between 2009 and 2011 will see a gradual and
speedy absorption of high-quality warehousing facilities that well meet the
basic technical standards.


Rental Trend of Logistics Warehousing Facilities
Figure 5 shows the trend of average rental rates and annual rental growth of
Chengdu’s logistics warehousing facilities that follow basic technical standards
during the period 2005–2011.
The city’s logistics warehousing facilities built before 2005 are commonly
poor in construction quality and property management service, which keeps


                                                                                    43
     rental levels low accordingly. With the continuously expanding supply of and
     improving management services of high-quality facilities, rentals of these types
     of facilities will rise in the next few years. However, high-quality facilities only
     account for a small portion of the city’s total supply, thus a steep rental growth
     is less possible.
     Upon the entry of many world-famous logistics facility developers into
     Chengdu’s logistics market in 2008, a bigger supply of high-quality facilities
     have been released, which has also gained the end-users’ recognition. Thus,
     it generated stronger demand of high-quality facilities that will gradually
     dominate the market.
     Rental is expected to soar in 2008 and 2009, whose growth rate is estimated
     to be 29%. As the market becomes mature, annual rental growth will be kept
     between 3% and 4% in 2009 and 2011

     Figure 5. Rental Trend of Chengdu High-standard Logistics Warehousing Infrastructure

          Yuan / Day / Sqm                                                    %
                                                                                  30.0%
            0.90
                                                                                  25.0%

                                                                                  20.0%
            0.60
                                                                                  15.0%

            0.30                                                                  10.0%

                                                                                  5.0%

            0.00                                                                  0.0%

                       Average Rental         Y-O-Y Growth Rate

     Source: Jones Lang LaSalle



     Asset Performance of Logistics Warehousing Facilities
     Figure 6 tells the asset performance of Chengdu’s logistics warehousing
     facilities from 2005 to 2011. Since the market was on its embryo stage in 2005
     and 2006, facilities in the market did not enjoy a high value so the market
     rental was too low to be worth counting. The annual return on investment
     (ROI) will be 10.1% in 2008 and 9.25% in both 2009 and 2010.


44
Figure 6. Overall Market Capital Value, Yield and Land Value

       RMB (Per Sqm)                                                             %
      4,500                                                                          12.00
      4,000
                                                                                     10.00
      3,500
      3,000                                                                          8.00
      2,500
                                                                                     6.00
      2,000
      1,500                                                                          4.00
      1,000
                                                                                     2.00
       500
         0                                                                           0.00


                Investment Yeild        Land Value       Capital Value

Source: Jones Lang LaSalle



Industry Segmentation of Logistics Warehousing Facility
End-users
Figure 7 shows the industry segmentation of end-users of public general
warehousing facilities, 90% of which comes from retail and the rest
respectively from bio-pharmaceuticals, vehicle and auto parts manufacturing,
and high-tech products. For example, bio-pharmaceuticals account for only 1%
of the total amount.
Figure 7. Logistics Market Segmentation




                        Retail     Hi    Tech        Automobile          Pharmaceutical

Source: Jones Lang LaSalle


                                                                                             45
     A Shift in Functions: From Warehousing to Value-added
     Services
     The development of logistics brings more functions than simple warehousing
     to logistics. Consolidation, reverse logistics, value-added services,
     trans-shipment and industry operation will become rising popular functions.
     Figure 8 shows that warehousing is still the most important function of
     Figure 8. Current Warehousing Uses

                                                  1%   5%

                                                                   14%




                                                                         15%


                                  65%



                     Consolidation      Storage   Trans-shipment   Value-Added   Reverse

     Source: Jones Lang LaSalle


     Chengdu’s logistics facilities, as it covers over 65% of the total market. Other
     functions, such as trans-shipment, value-added services, consolidation
     and reverse logistics, do not cover a large portion. However, as far as the
     three years’ planning is concerned, warehousing as a major function will be
     gradually replaced by other services adding higher values. Although traditional
     functions, including warehousing, will continue with their popularity and even
     expand, the strongest growth momentum comes from value-added services,
     trans-shipment and consolidation.




46
Appendix One: Macroeconomic Data of Chengdu
GDP of Chengdu: 2003-2007
Figure 9 shows the city’s GDP and its annual growth rate from 2003 to 2007.
During the period, the city enjoyed a stable growth of gross production, which
exceeded 13% in five consecutive years (averaged 13.84%). In 2007, the city
has realised a total GDP of RMB 332.4 billion, a 15.3% y-o-y growth.


Figure 9. GDP of Chengdu: 2003–2007

       GDP ( RMB Hundrend Million )                                              %
          3,500                                                       15.30%         15.50

          3,000                                                                      15.00
                                                          13.80%                     14.50
          2,500
                                                                                     14.00
          2,000                    13.60%    13.50%
                                                                                     13.50
          1,500      13.00%
                                                                                     13.00
          1,000
                                                                                     12.50
            500                                                                      12.00
              0                                                                      11.50
                      2003            2004   2005          2006           2007
                    GDP                               Y-O-Y Growth Rate

Source: Chengdu Statistic Bureau




The Volume of Social Retail Consumption: 2003-2007
Figure 10 shows the total amount and annual growth rate of the city’s retail
consumption from 2003 to 2007. During the period, the city sustained a stable
rise in retail consumption, averaging 13.9% in the last five years. To 2007, the
total amount has reached RMB 135.7 billion, a 17.49% y-o-y growth. Both the
sustained and stable growth show that Chengdu boasts a promising domestic
retail market.




                                                                                             47
     Figure 10. The Volume of Social Retail Consumption Volume (2003–2007)

           The Volume (RMB Hundred Milloon)                                                   %
             1,600                                                                                20.00
                                                                                    17.49%
              1,400                                                                               18.00
                                                       14.19%         14.81%                      16.00
              1,200                     13.50%
                                                                                                  14.00
              1,000                                                                               12.00
                         9.30%
               800                                                                                10.00
               600                                                                                8.00
                                                                                                  6.00
               400
                                                                                                  4.00
               200                                                                                2.00
                  0                                                                               0.00


                         The Volume of Social Retail Consumption          Y-O-Y Growth Rate

     Source: Chengdu Statistic Bureau


     FDI In Chengdu
     Figure 11 indicates the total amount of actually utilised foreign direct
     investments (FDI) and its annual growth rate. In 2007, the actual deployed FDI
     actually utilised amounted to USD 1.14 billion, which is a 50% y-o-y growth.
     The total number of approved FDI projects was 365 in 2007, and until the end
     of the year, a cumulative amount of 4,462 foreign companies have registered,

     Figure 11. Actual Foreign Capital Utilised

           USD Hundred Billion                                                                %
                 12                                         67.17%                             70.00

                 10                                                            50.20%             50.00
                 8                                              36.76%
                                                                                                  30.00
                 6
                            15.80%
                                                                                                  10.00
                 4

                 2                                                                                -10.00
                                             -21.88%
                 0                                                                                -30.00


                        The Actually-Utilized Foreign Capital        Y-O-Y Growth Rate

     Source: Chengdu Statistic Bureau


48
within which 124 of Fortune 500 companies have established their branches
or liaison offices in Chengdu. The year boasted a total of USD 3.42 billion
contract foreign capital, which rose by 67.04% from the previous year. Overall,
the actual deployed FDI enjoyed an average annual increase of 26% from
2003 to 2007.
Therefore, it is safe to claim that the prominent investment environment and
the promising market will continue to attract foreign institutions.


Railway, Road and Air Freights: 2003-2007
Figure 12 indicates that railway freights in Chengdu continued to expand from
2003 to 2007. In 2007, the goods transported through railways totalled 146.94
million tonnes, which means a 4.9% y-o-y increase.

Figure 12. Railway Freight 2003–2007

       Volume of the Freight(Ten Thousand Ton)                                 %
        15,000                                                                     180.00
                                   162.21%
                                                                                   160.00
        12,000                                                                     140.00
                                                                                   120.00
         9,000
                                                                                   100.00
                                                                                   80.00
         6,000
                                                                                   60.00
         3,000                                                                     40.00
                 9.03%                                         5.24%   4.90%       20.00
                                             1.98%
             0                                                                     0.00


                   Volume of Freight             Y-O-Y Growth Rate

Source: Chengdu Statistic Bureau




Figure 13 shows that Chengdu’s road transportation also sustained continuous
growth (7.4% of the annual growth rate) during the four years between 2003
and 2007. The goods transported along the roads of Chengdu totalled 152.95
million tonnes until end-2007, which means an 8.67% y-o-y growth.




                                                                                            49
     Figure 13. Road Freight 2003–2007

           Volume of the Freight(Ten Thousand Ton)                                            %
            20,000        12.77%                                                                  14.00

                                                                                                  12.00
            16,000
                                                                                     8.67%        10.00
            12,000                                                                                8.00
                                                       6.20%
             8,000                                                                                6.00
                                                                       5.70%
                                                                                                  4.00
             4,000                       4.10%
                                                                                                  2.00

                 0                                                                                0.00

                          Volume of Freight            Y-O-Y Growth Rate

     Source: Chengdu Statistic Bureau



     Figure 14 illustrates that Chengdu’s air freight maintained its growth (16.37%
     of the annual growth rate) during the four years between 2003 and 2007. The
     goods transported by air in Chengdu totalled 223,000 tonnes until end-2007,
     which means an 11.5% y-o-y growth.

     Figure 14. Air Freight 2003–2007

           Volume of the Freight (Ten Thousand Ton)                                           %
                     25                                                                           30.00
                                              25.41%
                     20                                                                           25.00

                                                                                                  20.00
                     15
                             16.19%                      17.65%
                                                                                                  15.00
                     10
                                                                       11.11%        11.50%       10.00
                     5                                                                            5.00

                     0                                                                            0.00
                              2003            2004        2005          2006         2007
                          Volume of Freight                      Y-O-Y Growth Rate

     Source: Chengdu Statistic Bureau




50
Appendix Two: Basic Technical Standards of Modern
Warehousing Facilities
1. DESIGN SCOPE
1.1 Design Scope of Work
General
•   Design will cover each and every building in the developed plot, including
    but not limited to: warehouse(s), service building, guardhouse(s), bicycle
    shed(s), pump room, firewater tank, substation and generator room. The
    design also includes other exterior services, including road and parking lot
    arrangement.
•   Design work includes the architecture, foundation, civil, structure,
    mechanical, electrical, fire fighting, warehouse office, servicing building
    VRV HVAC system and exterior arrangement.
•   Steel structure design normally will be included in the design scope of work
    unless written confirmation is provided.
•   Code store (if there is any) design will NOT be included in the design
    scope of work unless written confirmation is provided.
•   Normally, the following design work will NOT be included in the design
    scope of work:
•   IT system and any other surveillance systems such as CCTV, perimeter
    security, door access, patrol etc.
    - Landscaping design
    - Office decoration design

Electrical Design
•   Power transform system
•   Power supply system
•   Lighting system
•   Fire alarm and fire linkage control system
•   Telephone system
•   Wide band Internet access system
•   Lighten protection, safety precaution and grounding system

                                                                                   51
     Mechanical Design
     •   Design Scope: indoor and outdoor water supply, drainage system inside
         the property line

     Fire Fighting Design
     •   Design Scope: fire-fighting system inside the property line

     HVAC System Design
     •   Warehouse: Ventilation and fire system fume exhaust system
     •   Office: air-conditioning system
     •   Serving building: air-conditioning system
     •   Toilet: ventilation system


     2. GENERAL LAYOUT AND ARRANGEMENT
     2.1 Level
     •   Facility road level is equal or higher than the adjacent public road middle
         level.
     •   Warehouse internal floor level should be 1.3 m higher than the facility road.
     •   Accessory buildings such as utility room, guardhouse, generator room,
         pump room and service office shall be 200 mm higher than the facility
         road.
     •   Double check the 100-year flood line; and the warehouse floor level shall
         be higher than the 100-year flood line.

     2.2 General Arrangement
     •   Loading and unloading area, including the truck turning area, should have
         a minimum of 30 m and 45 m, respectively, in case back-to-back loading
         area is considered. The fire truck road’s minimum width is 6 m. Fire trunk
         road should be around the warehouse.
     •   A suitable exterior road shall be constructed for 40-foot container trunk
         transportation. I should be an asphalt road with no rebar designed.
     •   The minimum turning diameter is 12–15 m long for 40-foot container trucks
         and 6 m turning diameter for fire trunks.

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•   The fence and building set back shall follow the planning requirement.
•   The main entrance gate shall be made of stainless steel electrically
    motorised extractive door with a minimum height of 1 m and a minimum
    width of 12 m. The entrance door can be operated manually and
    electrically. The entrance gate shall be rail-free products with warning lights
    on the top and time/date lights on the front. At the truck entrances and
    exits, electrical operating barriers will be operated from the gatehouse.
•   The fence and perimeter wall shall be 1.8-m high unless there is any
    regulation from the industrial zone. The fence shall have reinforced
    concrete columns with cast iron railings. The reinforced concrete column’s
    middle distance shall be equal or larger than 4 m. The bottom fence will
    have a 300–500 mm concrete retention wall. The cast iron railing’s style
    and pattern should take reference from other facilities in the zone and
    should be finalised by the project owner.
•   The parking lot arrangement will be subject to the size of each fire
    compartment and normally shall be calculated in the following way: three
    sets of 5 m x 15 m container trunk location, four sets of normal vehicle
    park location and another 7–10 bike locations for each fire compartment.
    The parking lot will be covered with landscaping block.

2.3 Slope Design
•   Entrance/Loading/Unloading area: should not be larger than 1.5%
•   Forklift area: should not be larger than 8%
•   Exterior road: should not be larger than 6%

2.4 Transportation and Parking Sign
•   Fire trunk road sign
•   Transportation management and control sign
•   Speed blocks
•   Sign for no entrance

2.5 Road Marking Sign
•   Road Lines Central. Discontinuous, painted in white, even length and
    intervals.
•   Road Directional Arrows. Traffic directional arrows, white colour.

                                                                                      53
     •   Road Speed Limit Signs. Provide white coloured ‘20’ km speed limit signs
         with a white circular border painted on the concrete road’s surface. Its size
         should fully cover one half of the road area and position the sign so it could
         be read from the direction of incoming traffic. Locate as directed by the
         owner.
     •   Truck and car-parking spaces.


     3. ARCHITECTURE DESIGN
     3.1 Warehouse (office included)
     General
     •   The design of the distribution centre with two sides of the loading/
         unloading area or normal warehouse with single direction loading/
         unloading area is subject to the assessment of the market situation and
         location transportation situation. Decision making should also take into
         consideration the available land shape.
     •   The fire hazardous classification is Class C and fire resistance is Class II.

     Dimensions
     •   Clear height will be 10.5 m and column span will be 9 m. Partial column
         can be 8.5–9 m for the adjustment of the total length. The span shall be
         from 22 m to 27 m. Three spans will be preferred. Four spans can be
         considered only when there are two sides loading and unloading.
     •   Whether or not a loading dock shall be designated shall be subject to the
         discussion with the client. In the event that a loading dock is proposed,
         the width of the loading dock will be 6 m unless otherwise specified. The
         canopy of the loading dock will be 8 m. The internal gutter and down pipe
         will be considered for the canopy. Clear height for the loading dock will be
         1.3 m. In the event that the loading dock is NOT proposed, the canopy will
         be 6 m.
     •   The proposed single-floor warehouse structure with the total construction
         area shall be less than 24,000 sqm. Each individual fire compartment shall
         be around 6,000 sqm, equipped with one forklift slope. Larger warehouse
         areas can be proposed in case of a build-to-suit situation. However, the
         maximum fire compartment area shall be less than 16,000 sqm.



54
•   The warehouse office area will be 5% of the fire compartment area. The
    office will be typically a two-floor mezzanine steel structure inside the
    warehouse. The male and female toilet with hand-washing area shall be
    proposed on the first-floor office.

Doors and Windows
•   Bumper billiard shall be allowed on the forklift access door on both sides,
    forklift slope edge, indoor down pipe and any other area that needs
    protection with 200 mm in diameter and a C15 concrete inside. The
    bumper shall be painted yellow. The bumper billiard shall be embedded
    during the floor slab and road concrete pouring and embedded hold-down
    bolts connection cannot be used.
•   Design shall have allowance of 2–3 industrial-type sectional doors for each
    fire compartment along the loading dock. Another forklift access door and
    two emergency access doors shall also be considered. The design shall
    also have provisions for future 2–3 industrial-type sectional doors and
    two 4 m x 4 m fire-rated, roller-up doors for the fire wall between the fire
    compartments. The detailed specification of the door are the following:
    - Industrial-type Sectional Door: 2.75 m (W) x 3.5 m (H) with a visual
       panel and can be operated both manually and electrically
    - Electrical Roller-up Door: 4 m x 4 m, for forklift access slope area
       Emergency Exit Door: 1 m (W) x 2.1 m (H)
    - Access Door from Office to Warehouse (Class A Fire-rated Door):
       1.2 m (W) x 2.1 (H)
    - Office Exterior Door (with 2 m wide and 1 m extended glaze canopy on
       top) 1.5 m x 2.4 m
    - Office Internal Door: wooden door
    - Accessories Building Doors: selection per national and local codes/
       requirements
•   The following specifications for windows are indicated below:
    - Steel windows with 1.2 m high at the high part of the sidewall
    - Steel fire-rated view panels proposed between the warehouse office and
      warehouse
    - Windows for service and utility buildings, toilet, guardhouse etc (such as
      plastic windows)


                                                                                   55
     Stairs and Ladders
     •   Steel ladders shall be proposed to access the roof as per national and
         local codes/requirements.
     •   Steel stairs shall be designed for second-floor office access. Concrete
         shall be poured on the steel steps with decoration finishing to be detailed
         in the decoration section.
     •   Reinforced concrete external stairs shall be proposed to access the
         loading dock or office building.

     Steel Walls and Roofing System
     •   The building shall be designed to light the pre-engineering steel structure
         system. The external wall is a single-layer cladding on top of a 1.2 m dado
         wall. The dado wall shall be made of brick wall or concrete-aerated block
         wall. The 1.2 m-wide colour band shall be proposed at the location with
         a 600-mm distance at the top of the wall. The detail of the colour for the
         band refers to the colour section. No wall parapet shall be designed.
     •   External wall cladding shall be Colorbond® or equivalent with SMP
         (silicon-modified polyester) coating on top and PE (polyester) coating on
         the back. The minimum thickness of the panel is 0.5 mm and the required
         galvanisation capacity will be 150 g per sqm.
     •   The roof shall be a single-ridge, double-sided roof at 4% slope.
     •   Roofing shall have sky-lite with strip shape and shall have 5% of the total
         roof area.
     •   Block Walls
     •   The partition wall between the office and warehouse shall be a block wall
         reaching the bottom of the roof.

     3.2 Utility Buildings
     •   Utility building shall include a substation, pump room, diesel generator
         room and fire water tank. The height of the utility buildings will be 5.5
         m and will have a total of 6 m after the half-meter parapet. The actual
         size of the utility building will be determined by the actual requirement
         and relevant design codes. The utility building will be made of reinforced
         concrete single-floor frame structure. Each room shall have a minimum of
         one independent access door.

56
3.3 Guardhouses
•   The construction area of the main entrance guardhouse will be about
    30 sqm with guardroom, fire-control area and toilet. The secondary
    guardhouse and any other guardhouse’s (if there is any) total construction
    area will be about 20 sqm, including a guardroom and toilet. The
    guardhouse’s structure will be a single-floor brick structure. The main
    company logo will be established in the main entrance. The detailing of the
    logo refers the sketch provided.

3.4 Servicing Building
•   The servicing building will be made of reinforced concrete frame structure
    at two floors. The first floor will be driver restroom, public toilet and
    canteen. The second floor will be a property management office. The
    total construction area of the serving building will be around 300 sqm in
    case the total park construction area is less than 30,000 sqm. In case the
    total park construction area is larger than 30,000 sqm, 450 sqm will be
    considered.

3.5 Garbage Room
•   The construction area of the garbage room will be around 10 sqm. The
    structure of the garbage room will be a single-floor brick structure with a
    height of 2 m.


4. STRUCTURE DESIGN
4.1 Floor
•   The floor loading capacity is 3 tonnes per sqm with 45 kN point load on a
    100x120x10 mm racking plate.
•   The warehouse floor shall apply reinforced concrete with floor hardener.
    The thickness of the floor slab and the rebar design shall be technically
    assessed and calculated by the structure designer from the design
    institute prior to the presentation of any resolution. This shall also be
    based on a detailed geotechnical study report and the actual available
    underground situation to determine the structure solution. The floor live
    load will be 3 tonnes per sqm and the minimum floor slab thickness
    is 180 mm. A minimum capacity of C30 concrete at 28 days shall be
    adopted. Considering the uncertainty of the direction and location of the

                                                                                  57
         racking from the tenant, settlement calculation shall be undertaken for the
         foundation (compound foundation, natural foundation or pile foundation)
         under the floor slab. This is in consideration of the partial area full-rack
         load and partial area zero-rack load during the implementation period of
         the warehouse.
     •   In the event that the natural foundation or compound foundation is
         adopted, the compaction degree of the back-fill soil underneath the floor
         slab shall not be less than 0.94. The selection of the back-fill soil shall
         not be those with high components of water, frozen soil, expanded soil
         or soil with more than 8% of organic material. The back-fill soil shall be
         compacted in layers, with each layer having a thickness of 200–300 mm.
     •   Unless otherwise stated, the floor finishing for the warehouse and loading
         dock must be metal granite dry shake type floor hardener at 5 kg per sqm
         dosage with natural colour. Smoothing work shall be undertaken after
         the concrete pouring. Expansion joint and concrete cutting shall be also
         arranged. The maximum distance of the expansion joint of the concrete
         floor shall be 6 m and shall be connected via connection rebar. When the
         concrete finishing is completed, the concrete cutting shall be arranged
         immediately. The depth of the cutting shall be 25% of the floor slab
         thickness.
     •   When the outdoor dock leveller is designed, the cost comparison between
         the back-fill soil foundation and aerated foundation for the floor slab
         structure shall be undertaken for a more cost-effective solution. The
         loading dock floor slab construction method shall be the same with the
         warehouse slab with floor hardener.

     4.2 Exterior Road
     •   Apart from the fire trunk road in the facility, all other roads shall
         accommodate 15-m long container loading trunks. The foundation shall be
         determined based on the structure designer calculation. This calculation
         shall also take the road foundation soil condition into consideration and
         proper soil treatment shall be undertaken for any soft soil foundation.
     •   The asphalt that is applied to the road construction shall be selected
         from road construction petroleum asphalt or its processed products. The
         selection shall be based on road classification, climate condition, traffic
         capacity and nature, transportation route, layer structure, construction
         implementation plan, local experience etc. The curb stone shall be


58
    arranged between the road and landscaping area. A heavy duty curbstone
    with 300 mm in height shall be arranged for the trunk parking area. The
    curbstone height in other areas shall be 150 mm.


5. ELECTRICAL DESIGN
5.1 General
•   One main electrical cabinet will provide the power supply for each unit
    (assuming that every 6,000 sqm will be a unit) at a 380/220 system and
    a three phase four line. The main power cabinet will be 106 kW at 200
    A [[Please check unit of measurement]] (based on 6,000 sqm). The
    main switch shall have a short circuit disconnection and power current
    stabilization function. The electrical engineer shall adjust the electricity
    creepage current (power surge) based on the actual situation (three phase
    generate an uneven creepage current and adjust stable current value).

5.2 Power Supply System
•   All power supply comes from the substation. The fire pump’s secondary
    power supply comes from diesel generator sets. The secondary power
    supply for emergency lighting comes from the build-in battery. The
    secondary power supply for the fire fighting control room equipment comes
    from build-in UPS at a power pressure grade of 0.4/0.23 kV.
•   Power Supply: the low voltage power supply will use a combination of
    emanated and embranchment type. For single large capacity load or key
    load such as water pump room equipment, power can be supplied directly
    from an outdoor cabinet-type transformer. Dual power supply shall be
    designed for the water pump room and fire-fighting control room.
•   Power Supply and Control Method: the power supply control cabinet for
    lighting and water pump shall be standard cabinet. Any generator under 15
    kW can use the direct-starting method. Any generator larger than 15 kW
    shall use the soft-starting method. All can be controlled on-site manually or
    automatically.
•   Power Supply Route and Installation: the cable from warehouse’s main
    power cabinet or any other fire compartment shall use flame-retardant
    cables through steel pipe and shall be embedded underground. Non-fire
    fighting cable shall use standard BV-500 wires and shall be installed along
    the metal cable tray or steel pipe. The fire-fighting cable shall use flame-

                                                                                    59
         retardant cables or wire along a metal cable tray or fireproof steel pipe
         during installation.
     •   Other power supply requirement (design shall provide the provision of
         sockets)
         - Fast Roller-up Door:       220V, 1kW
         - Dock Leveller:             220, 700kW
         - Forklift charging station: 380V, 15A

     5.3 Power Transformation System
     •   Loading Nature: fire-fighting equipment power supply shall be Class II
         loading and all others will be Class III loading.
     •   Power Supply Source and Power Pressure Classification: power supply
         will come from the city grid and will be embedded into the substation.
         When available, an outdoor-type cabinet transformer can be considered at
         10 kV. When the power transformed to 0.4/0.23 kV, the power cable shall
         be embedded into each power consumption point.
     •   Considering the Class II power load requirement, one diesel generator set
         shall be considered in the utility room. When there is dual power supply
         from the city-grid line, generator sets can be deleted.
     •   Power Measurement: calculated at LV end. Every LV outlet will arrange
         one dedicated special metre to achieve independent metering at each fire
         compartment.

     5.4 Lighting System
         The main area lighting density is as follows:
         Office:                                                   400 lux
         Inside Warehouse:                                        150 lux
         Main Entrance of the Park:                                80 lux
         Road:                                                     30 lux
         Underneath the Canopy:                                   150 lux
         Parking Lot:                                              30 lux
         First Five Metres Inside the Warehouse (picking area):   200 lux
         Utility Room/Toilet:                                     100 lux
         Other Accessory Buildings:                               100 lux
         Stair Room:                                              100 lux

60
•   Lighting Source: office, utility room lighting shall be florescent lights. The
    warehouse shall use high bay metal lights. The pump room and toilet
    shall use waterproof-type incandescent lights. Outdoor lights shall use
    waterproof, dustproof lights.
•   All florescent lights shall use electrical inductance ballast to enhance the
    power factor. The high bay metal light inside shall have fireproof treatment.
•   In the event that food or other sensitive cargoes are to be stored in the
    warehouse, high bay lights shall have covers for potential glass material
    fall down. This shall be formally confirmed by the project owner via written
    format.
•   Evacuation indicator lights, exit indicators and emergency lights shall be
    arranged in the office, warehouse, utility room and exit.

5.5 Telephone System
•   Telephone Exchanger Capacity: four telephone lines for each unit and one
    line for the guardhouse, fire-fighting control room and substation.
•   Reserved Telephone Cable Conduit: two DN100 welded steel pipe
    from the outdoor directly connecting to the serving building telephone
    exchanger. There should be another two DN50 welded steel pipe from the
    telephone exchanger to each individual unit telephone connection box and
    other individual buildings.

5.6 Wide-band Internet Access System
•   Reserved Network Conduit: two DN100 welded steel pipe connecting from
    the city grid to the utility room. There should be another two DN80 welded
    steel pipe from the utility room to each unit office.


6. MECHANICAL DESIGN
6.1 Outdoor Water Supply and Drainage Work
•   Water Source: the water supply source comes from the city water supply
    network with a diameter of DN200 from two difference sources. When city
    water supply cannot satisfy two water sources, a firewater tank with one
    water source will be needed to satisfy the engineering requirement.




                                                                                   61
     •   Domestic Water Capacity: the maximum daily water capacity and peak
         water supply capacity shall be calculated based on the worker number
         provided by the project owner.
     •   The outdoor sewer engineering design shall adopt a domestic sewer and
         storm water separation system. The domestic water shall be gathered and
         discharged into the city sewer piping after the septic tank.
     •   The outdoor drainage piping shall adopt reinforced concrete pipes with
         steel mesh and concrete connector. An inspection of the hole by the brick
         man shall be arranged. A heavy duty ball graphite manhole cover will be
         adopted. The storm water collector shall be provided with the appropriate
         location outdoors beside the road, collecting the road, pass way and roof
         storm water. The storm water discharge shall be calculated based on the
         local maximum storm water formula.

     6.2 Indoor Water Supply and Drainage Design
     •   Domestic Water Supply System: when the city’s water pressure is large
         enough, domestic water can be provided directly from the city network.
         When the city’s water pressure is not large enough, a pressurised system
         shall be added. The piping material shall be hot dip in galvanised steel
         pipe or PPR pipe with shred connection.
     •   The domestic sewer will be discharged outside via piping and treatment of
         the septic tank. The piping material will be made of UPVC pipe.
     •   The storm water discharge system shall adopt a gravity storm water
         discharge system. The roof storm water shall be collected via a storm
         water box and shall be discharged to the apron of the building via down
         pipes. The indoor storm water pipe shall adopt PVC-U pipes.
     •   Toilet facilities for the physically handicapped have to be provided as
         required by law.
     •   Toilet rooms have to be equipped with all-plumbing fixtures and toilet room
         accessories.

     6.3 Water-saving Measurements
     •   Water-saving types of sanitary toilet fixture and accessories shall be
         selected.
     •   An individual water metre shall be provided for each warehouse.


62
7. FIRE FIGHTING DESIGN
Fire Water and Extinguisher Arrangement
•   Although the following section description indicates that the fire hydrant
    pump is separate from the fire sprinkler pump; it is encouraged and
    suggested to combine the fire hydrant and fire sprinkler pumps into
    one pump, although this means that the capacity of the pump shall be
    added up.
•   The firewater comes from the city’s water supply network with two sources
    at DN200. In the event that the city’s water supply cannot satisfy two
    sources water supply, single sources water supply and one fire water tank
    shall be considered to achieve the engineering requirement.
•   Outdoor Fire Fighting Water Supply Engineering Design: when the city’s
    water supply pressure cannot satisfy the outdoor fire hydrant requirement,
    a temporary high-pressure fire hydrant system shall be adopted. The fire
    hydrant pressure pump will be designed in the pump room with a total of
    two sets. One will be used and one will be on standby.
•   The piping after the pressurised fire hydrant pump shall be designed as a
    ring layout after the pump room with distance according to design codes.
    The distance to the road shall be no larger than 2 m and the distance to
    the building wall shall be no less than 5 m.
•   The fire fighting water pump connector for the indoor automatic fire
    sprinkler system shall be designed outside of the warehouse.

7.1 Indoor Fire Hydrant System
•   A temporary high-pressure fire hydrant water supply system will be applied
    indoors. The fire hydrant’s pressurised pump will be located in the fire
    pump room outside the warehouse with a total of two sets of pump, one
    will be used and one will be on standby. The pressurised system piping is
    connected from the pump room and will be designed into a loop system
    and connected to the warehouse fire hydrant pipe.
•   Fire hydrant protection has been proposed inside the warehouse. The
    design is to achieve the situation that each and every location inside the
    warehouse can be achieved by two fire hydrants. The effective protection
    distance of the fire hydrants is 10 m.



                                                                                 63
     •   Every fire hydrant box shall be equipped with DN65 mm hydrants, one
         DN65 mm fire hose at 25 m and one piece of DN65 mm water gun at
         19 m, one fire fighting water pump push button and one indicator light.
     •   The pressure stable device shall be arranged based on the different
         requirement in each location with a pressure stable or high-level water
         tank.
     •   Fire hydrant water supply pressure pump shall be activated directly by the
         fire fighting pump push button in the fire hydrant box or the direct activation
         in the fire fighting control centre. When the fire hydrant pump is activated,
         the operation signal of the water pump will provide feedback to the fire
         fighting control centre and fire fighting hydrant box. The indicator lights
         in this fire hydrant and other hydrants in the same compartment will be
         switched on. A rubber connector can be installed in the water pump, water
         pipe and outlet. A tiny drag slow shut check valve will be installed in the
         outlet of the water pump to prevent the water hammer phenomenon.
     •   The pressure control device installed in the fire fighting pressure stable
         pump shall be able to automatically activate the pump.
     •   Manual activation and stop control device shall be installed in the fire
         fighting control centre and water pump room for pump control.
     •   The fire fighting hydrant standby pump shall be able to automatically
         activate in case the working pump failed.
     •   The water supply pipe for the fire fighting hydrant shall be hot dip
         galvanised pipe with shred or groove joint connection.

     7.2 Automatic Sprinkler System
     •   Sprinkler head protection shall be applied for all areas in the warehouse
         except the toilet. The fire hazard classification of the warehouse will be
         Class II and early suppression and fast reaction sprinkler system will be
         designed.
     •   Three sets of water supply pressure pump for the automatic sprinkler
         system shall be considered in the pump room, with two working and one
         on standby. The system piping will be connected from the pump room
         and will be designed to the loop layout. The incoming water pipe will be
         connected from that loop to each unit alarm valve sets in the warehouse.




64
•   The operation status of the automatic sprinkler system water supply pump
    shall be indicated in the control panel of the pump room and also the
    monitor of the fire fighting control centre.
•   Piping Material: automatic sprinkler system piping shall use hot dip
    galvanised pipe with shred connection when DN<100 mm and groove
    connection when DN>100 mm.

7.4 Mobile Extinguisher Device
•   Dry powder fire extinguisher shall be arranged in the office, warehouse
    and utility room based on middle-level of hazardous requirement. In
    particular, the cart-type fire extinguisher will be deployed in the warehouse,
    and hand manual fire extinguisher will be deployed in the warehouse
    office, utility room and serving building.

7.5 Fire Alarm and Fire Fighting Linkage Control System
•   The linkage control panel will be installed in the fire fighting centre and the
    control method will be done automatically and manually. In case of fire,
    monitoring and control can be achieved on the fire hydrant, sprinkler and
    smoke evacuation systems, fire proof roller door and fire alarm device
    etc. Also, the non-fire fighting power supply can be cut off manually or
    automatically.
•   A centralised fire alarm system will be designed. Apart from the toilet
    where fire accident is not likely happen, smoke detectors shall be designed
    in the office and utility room. Infra-red radiation detector will be designed
    for the warehouse. Manual alarm push button and telephone socket will
    be designed in the main entrance and evacuation stairs. Direct activation
    button will be required in the fire hydrant.
•   Alarm controller can receive smoke detector (Infra-red radiation detector)
    fire alarm signal and also the malfunction and operation signal of water
    flow indicator, wet pipe alarm check valve, manual alarm check valve and
    fire hydrant push button.
•   Protection Classification: The protection will be Class A for the Class C
    warehouse fire fighting automatic alarm system.
•   System Component: system will be composed by fire alarm system, fire
    linage control, UPS, monitor, fire communication telephone etc.



                                                                                    65
     8 HVAC SYSTEM DESIGN
     8.1 Indoor Designed Temperature
         Room name                     Indoor designed               Indoor designed
                                     temperature in winter        temperature in summer
         Office                               18-20                        25-27
         Lobby                               16-18                        26-28
         Toilet                               16
         Canteen/driver rest room            18-20                        26-28
         Reception area                      18-20                        26-28
         IT room                             16-18                        25-27



     8.2 Ventilation
     •      Warehouse Ventilation: warehouse need mechanical ventilation or nature
            ventilation with minimum air exchange rate of two times per hour.
     •      Toilet Ventilation: mechanical ventilation will be designed for the toilet with
            minimum air exchange time of 8 times per hour. The make-up air will come
            from the door and windows.
     •      Forklift Charging Area Ventilation: mechanical ventilation system will be
            designed for forklift-charging area with the air exchange rate of 12 times
            per hour. The ventilation will be realised through the explosive type of fan
            installed in the external wall. The make up air will come from the door and
            windows.

     8.3 Air Conditioning
     •      VRV dual purpose air conditioning system shall be designed for the office
            of each fire compartment. The make up air will come from the door and
            windows. The condensation will be centralised and discharged to the toilet.
            Ceiling suspended type of indoor unit will be used and the outdoor unit will
            be located in the foundation pad in the vicinity of the landscaping area.
     •      Other buildings, such as serving building, food preparation room, driver
            restroom, guardhouse etc., will use split-type air conditioners.




66
9. DECORATION
9.1 Warehouse
•   The joints sealing is made with plastic black membranes inserted under
    pressure.
•   Battery-charging area will be made of a concrete slab finished with an
    acid-proof layer. A metal shelter will be provided to protect the area.

9.2 Warehouse Office
•   Office walls are made in gypsum boards fixed on a galvanised metal
    frame, insulated with glass wool or polystyrene panels.
•   Floors of office blocks, office spaces, restrooms, locker rooms and toilet
    rooms of the warehouse made of ceramic tiles, sizes 20 x 20 cm or 30 x
    30 cm, colours to project owner’s choice. Floors on staircases made of
    ceramic tiles, with antiskid stripes on steps elements.
•   Wall finishing to toilets and locker rooms walls made of ceramic tiles, size
    20 x 20 cm, height cm. 140. Waterproof paint to the ceiling. Wall finishing
    to restroom walls made of waterproof painting. Wall finishing to office
    areas and all other areas made of water-based painting. Tiles and painting
    colours to project owner’s choice. Skirting made of PVC or wood, colour to
    be defined, height 7 cm. Plaster finish has to be applied to all block walls
    for all office areas.
•   Painting of all rooms of the office block, restrooms, false ceiling entrance
    hall, locker rooms (technical rooms and charging rooms excluded) made
    of water-based white paint, 2 layers. Painting of restrooms, locker rooms
    made of waterproof white paints, two layers.
•   Paint finish quality wooden doors.
•   Cable trays and conduits will be provided to feed all workstations, meeting
    rooms, reception desk as well as other areas as required.
•   Mineral wool suspended ceiling tiles with suspended pre-finished two-way
    exposed metal grid system to general office areas, minimum height of
    2700 mm above floor level for the office area and 2400 mm for the corridor
    and other area.
•   Suspended ceiling.



                                                                                  67
     •   Plasterboard, painted walls including skirting.
     •   Separate power distribution panel will be provided for office area, with
         spare capacity of 25% of power consumption in office area.
     •   Smoke detection system will be subject to the requirements of the local fire
         bureau.
     •   About 30 power sockets will be provided for office area.


     10. LANDSCAPING WORK
     •   The design of the landscaping shall be undertaken by a company with
         special expertise. Plan layout with detail specification and selected
         landscaping photos shall be provided as reference. A rendering picture
         with the landscaping colour shall also be provided.
     •   It is proposed that a designed company logo developed by landscaping
         shall be included in every logistics park. For details, refer to the colour and
         company logo section.
     •   The external areas shall be bounded with prefabricated concrete curbs
         size cm. 10/12 x 25. The green areas will be filled with previous excavation
         ground for a minimum thickness of 50 cm. On top of it, a grass soil will be
         placed for a minimum thickness of 30 cm, ready to be grass sowed.
     •   Car parking pavement will be in concrete green blocks.
     •   Landscaping will be made up of tall trees with a minimum height of 2 m, or
         with a minimum section size of 16 cm, and a minimum density of 1 tree per
         100 sqm.
     •   Landscaping will be made up of short trees and bushes facing the office
         areas, lawn on all other green areas.
     •   Each green area will be provided with water connection to allow manual
         watering.




68
11. EQUIPMENT
11.1 Dock Levellers
2-3 dock levellers shall be designed in the location of the sectional door for
each fire compartment. The detail of the dock leveller will be as follows:
•   Ramp frame in self-bearing metal sheet size 200 cm x 300 cm, equipped
    with side panels and bearing beam and bumpers size 250 mm x 450 mm.
•   Top board strengthened with additional steel trusses
•   Load bearing capacity of 60 kN, both static and dynamic.
•   Fixing to the pit through an L-shaped or C-shaped steel frame equipped
    with anchor clamps, allowing the installation of the leveller after pouring the
    concrete slab.

11.2 Racking
•   The racking general layout design shall be developed by a professional
    racking supplier arranged by the project owner. The sole purpose and
    criteria of the racking design is to achieve the maximum pallet capacity.
•   Conventional selective pallet racking will be adopted as default. VNA (very
    narrow alley) Pallet Racking, Drive-in and Drive-through Pallet Racking,
    Double-deep Pallet Racking, Powered Mobile Racking, Shelving Storage
    Solutions, Push-back Pallet Racking etc. can be adopted in case the
    tenant specifically required or in special applications, such as cold store
    area.
•   A minimum of 5 m but a maximum of 10 m shall be cleared as picking area
    along the loading dock area. Steel mesh can be considered as the partition
    separation.
•   As soon as the general racking layout is finally confirmed, the lighting
    fixture layout design and the sprinkler design shall be based on the racking
    design. In other words, the lighting fixture shall be installed in the alley
    area. In addition, the sprinkler system shall consider the in-rack sprinkler
    heads installed.
•   The racking and in-rack sprinkler system will be supplied and installed by
    the tenant.




                                                                                      69
联系方式
仲量联行成都                                 仲量联行上海
中国四川省成都市顺成大街8号                         中国上海市南京西路1366号
中环广场1座12楼05室                           恒隆广场2座25楼
邮政编码:610016                            邮政编码:200040
电话:+86 28 8665 1022                    电话:+86 21 6393 3333
传真:+86 28 8665 1021                    传真:+86 21 6393 3080

陶磊                                     王成志
成都工业部总监                                中国物流基础设施总监
电话:+86 28 6680 5022                    电话:+86 21 6133 5340
电子邮件:tony.tao@ap.jll.com               电子邮件:wonder.wang@ap.jll.com




Contact
Jones Lang LaSalle, Chengdu            Jones Lang LaSalle, Shanghai
Room 05, 12F, Tower 1, Plaza Central   25F, Plaza 66 Tower 2
8 Shuncheng Dajie                      1366 Nanjing Road (West)
Chengdu 610016, Sichuan China          Shanghai 200040, China
tel: +86 28 8665 1022                  tel: +86 21 6393 3333
fax: +86 28 8665 1021                  fax: +86 21 6393 3080

Tony Tao                               Wonder Wang
Head of Industrial, Chengdu            Head of Logistics Infrastructure, China
tel: +86 28 6680 5022                  tel: +86 21 6133 5340
email: tony.tao@ap.jll.com             email: wonder.wang@ap.jll.com




www.joneslanglasalle.com.cn
ABOUT JONES LANG LASALLE

Jones Lang LaSalle (NYSE:JLL) is a professional services firm specializing in real estate. The firm offers integrated
services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing
in real estate. With 2007 global revenue of USD2.7 billion, Jones Lang LaSalle serves clients in 60 countries from
750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate
facility management services, with a global portfolio of approximately 1.2 billion square feet. LaSalle Investment
Management, the company’s investment management business, is one of the world’s largest and most diverse in real
estate with more than USD53 billion of assets under management.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 16,500 employees operating in 76
offices in 13 countries across the region. Its China operations have about 700 professionals and 5,000 on-site staff,
providing quality real estate advice and services in the areas of retail, residential, commercial, management services,
project and development services and research. Key clients include various government agencies and developers, as
well as owners of high-end residential and commercial buildings.




                                             JLL
                                                                                               2007                            27                          180
                               60              750
                     12                                                                                       LaSalle Investment Management
                                                                                                530

                                                50                                       13                 76                                    16,500
                                    700                   5,000




© 2008 Jones Lang LaSalle. All rights reserved.
All information contained herein is intended as guide only and does not constitute advice. It does not constitute any offer or part of any contract for sale, lease
or otherwise. All details are approximate and have not been independently verified. Users should make their own enquiries to verify and satisfy themselves
of all aspects of the information (including without limitation, any income, rentals, dimensions, areas, zoning and permits). While the information has been
prepared in good faith and with due care, no representations or warranties are made (express or implied) as to the accuracy, currency, completeness,
suitability or otherwise of such information. Jones Lang LaSalle, its officers, employees, subcontractors, agents and clients shall not be liable to any person
for any loss, liability, damage or expense arising directly or indirectly from or connected in any way with any use or reliance on such information. The whole or
any part of this document must not be reproduced without written consent from Jones Lang LaSalle.

				
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Global Supply Chain Council Global Supply Chain Council http://www.supplychains.com
About Founded in 2002, the Global Supply Chain Council is Asia’s leading professional organization serving a fast growing community of more than 60,000 executives and representing leading companies who view their value chains as a critical driver of shareholder value and competitiveness. As an independent professional organization, the Council’s mission is to stimulate the understanding and adoption of supply chain management by providing a range of services including websites, magazine, directory, newsletters, research, workgroups, conferences, maps, video programming among other services. Targeting manufacturers and retailers end-users on line, in print and in person, the Council delivers a unique combination of education and lead-generation sources that helps logistics service providers, consultants, and software vendors and equipment suppliers achieve their growth objectives.