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Sino-Japan Logistics Joint Venture Operational

With the approval of the Chinese State Council, the China Railway and ITUP Logistics Company has begun operations in Beijing. It is the country's first auto-industry logistics joint venture with an overseas investor and is considered something of a milestone in logistics development.

The joint venture is a tie-up between the China Railway Modern Logistics Technology Company and the Japanese ITOCHU Corporation, with the Chinese side taking 67 percent of the shares.

With total registered capital of some US$1.2 million, the new firm will be focused on railway-based logistics with a particular emphasis on auto parts import and export, and whole car transporting.

Sources close to the ITOCHU Corporation said that they were optimistic about the prospects for the new partnership. They are confident that an advanced and fast-growing railway network in China will help the company further cut operational costs and realize the goal of setting up an all-round modern logistics network in China.

The Chinese side of the joint venture already operates some 100 logistics centers across the country, with most of them located along major railway routes.

(CCTV February 24, 2004)

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