The Aviation Logistics Industry Experiences a Boom in Investment Attraction

Recently, Sichuan's aviation logistics industry has seen significant innovative developments. In June, the province hosted its first provincial-level thematic promotion for the industry in Shanghai; Sichuan's specialized working group for investment promotion in aviation logistics conducted its first joint business soliciting event; moreover, Chengdu completed the first test flight of low-altitude urban air mobility for passenger transportation.

Two months prior, with a focus on the aviation logistics sector, provincial departments held a special session to discuss and plan for related investment promotion work. Collaboratively, provincial and municipal departments, relevant units of the provincial government, and external offices organized government-enterprise resource matchmaking meetings and industrial investment promotion conferences. Sichuan also issued guidance opinions on boosting the low-altitude economy and further set clear requirements for the development of unmanned aerial vehicle logistics distribution, among other initiatives in this domain. This series of actions sends a clear message to the outside: the aviation logistics industry in Sichuan is picking up speed.

"Currently, air cargo transportation has emerged as a strategic industry underpinning international and intercontinental freight across the globe. Despite accounting for less than 1 percent of the total global trade in goods, the aviation logistics sector contributes 35 percent to the world's total trade value. Its growth can significantly boost industries with distinctive advantages, and Sichuan holds tremendous potential in these domains," said a relevant leading official from the Sichuan Provincial Bureau of Economic Cooperation.

The data offers a snapshot of the current scenario. Sichuan is focusing on building a cargo transit center in the central and western regions of China and has initially formed a diversified aviation logistics service capability that includes "all-cargo aircraft + charter flights + belly space + passenger-to-freighter conversion". In 2023, the Chengdu aviation hub completed a total of 538,000 flight takeoffs and landings, handled 74.924 million passenger trips, and processed 771,000 tons of cargo and mail, representing year-on-year increases of 92.2 percent, 141 percent, and 26.1 percent, respectively. Among these, the passenger throughput ranked third nationwide, and the cargo and mail throughput ranked sixth across the country. In the first quarter of this year, the international (regional) cargo and mail throughput at Chengdu's dual airports surged by 48.3 percent year-on-year, indicating a swift acceleration in market demand.

Businesses are responding keenly to market shifts. At the recently conducted Sichuan (Shanghai) Aviation Logistics Industry Investment Promotion Conference, representatives from numerous invited global industry-leading firms disclosed their new development strategies for Sichuan.

Pinduoduo, one of the largest e-commerce platforms in the country, handles hundreds of millions of packages in transit daily on average, and its cross-border goods already account for nearly 30 percent of the international cargo volume at Shuangliu Airport. "Next, we will explore establishing cross-border e-commerce hub nodes and product production bases in Sichuan to bolster our supply chain capabilities," disclosed Wen Xue, Senior Vice President at Pinduoduo.

Ma Zhipeng, General Manager of DPD China's strategy center, also disclosed the company's intention to invest in Sichuan. Leveraging the robust backing of Chengdu's twin airports and a suite of national strategies, DPD is actively engaging with pertinent entities in Sichuan, with plans to establish a western cargo hub in the province.

At the promotion conference, substantial outcomes were achieved: Sichuan secured over 30 new valid investment intentions; YTO Express intends to invest several billion yuan in establishing express logistics hub bases and regional operation headquarters in Chengdu, Zigong, and other areas; and companies, including China Eastern Air Logistics, have set their schedules to visit Sichuan promptly for project inspections and collaborations.

Aviation logistics is merely an entry point. "By analyzing national-level and advanced regions' provincial-level strategic emerging industrial clusters, in conjunction with Sichuan's industrial foundation and development direction, we are focusing on industrial agglomeration and spillover areas to drive targeted initiatives in attracting industrial investment and strategic emerging industries," explained a relevant leading official from the Sichuan Provincial Bureau of Economic Cooperation. In the first half of this year, Sichuan Province hosted a total of 12 major and special provincial-level investment promotion events, speeding up the efforts to introduce a batch of leading projects with promising development prospects and substantial market potential.

Soure:The People's Government of Sichuan Province