Posts tagged ‘Logistics’

11/10/2016

Building Collapse Illustrates Peril of Do-It-Yourself Construction – China Real Time Report – WSJ

A fatal building collapse in southern China has highlighted a practice that more than once has produced death traps: structures built with little oversight by villagers on former farmland.

Such slapped-together buildings have tended to grow even more precarious as they age and as extra floors are added.

Four six-story buildings in a suburban area of Wenzhou, a city on China’s southern coast, collapsed Monday morning, claiming at least 22 lives, according to the state-run Xinhua News Agency, which cited local authorities. Six survivors were pulled from the building before the rescue was called off, Xinhua said.

The buildings were close to industrial parks of Wenzhou, a hub for light manufacturing including shoemaking, and most residents were migrant workers.The buildings were several decades old and erected by villagers, according to an article by the Wenzhou Daily that the local government reposted on its official website Tuesday. It said investigations were under way but an initial analysis showed that the collapse was likely caused by the buildings’ low quality and shaky foundation, a problem made worse by continuous rainfall in the past few days.

It used to be common practice in the 1980s and 1990s for residents outside China’s urban area to build houses with their own hands, often on what had been farmland. Over the years, floors were added without approval, leaving tottering buildings crumbling under the extra weight.

As cities have grown to incorporate such areas, local governments have tried to get rid of these “towns within cities,” tearing down the aging and shoddily built structures. The Wenzhou government had targeted much of the complex of the recent collapse for demolition, some of which had already started.

It wasn’t the first collapse of villager-built housing. Two years ago, a building under construction by local farmers in Xian in western China collapsed, killing five people.

Some online commenters pointed out that photos of the buildings involved show that more floors had been added to the original construction. The state-run newspaper Beijing News quoted a Wenzhou resident as saying that it was common for self-built buildings in the area to have additional floors.

The practice of adding floors has sometimes been a way for the owners of buildings targeted for demolition to extract more compensation from the government, which bases amounts to pay out to residents on the size of the living areas.

Another building collapse in Xian in 2011, which claimed seven lives, was caused by illegal additions the building’s owner had made to get more compensation, according to the local government. The owner was detained by the local police.

That tragedy came months after the Xian government rolled out new regulations to forbid compensation for illegal additions to a building. The local government said at the time that more than 50 cases of “self-built” building collapses had caused 69 deaths since 2007.

It was unclear whether the owners of the collapsed buildings in Wenzhou, who weren’t identified by the local government, will be held legally responsible for the casualties.

The Wenzhou collapse prompted calls for more regulation. “If relevant departments are still indifferent in face of self-built houses in such a disastrous state,” read one commentary by Beijing News on Tuesday, “then similar tragedies will be repeated.”

Source: Building Collapse Illustrates Peril of Do-It-Yourself Construction – China Real Time Report – WSJ

11/07/2014

Logistics: The flow of things | The Economist

TWO examples of the infrastructure that has helped make China a mighty trading power can be found on the outskirts of Shanghai: Yangshan, the world’s busiest container port, and Pudong airport, the world’s third-biggest handler of air cargo. Radiating out across the country are more than 100,000km (62,000 miles) of expressways and a comparable length of railways. Given all this new infrastructure, you might expect China to have a world-class logistics industry, too. It does not.

Logistics covers transportation, warehousing and the management of goods. Its Chinese translation, wu liu, literally means “the flow of things”. But that flow within the country is costly and cumbersome. Much of the investment in infrastructure has gone to lubricate exports. Now, as China’s government shifts its focus to consumption at home it is finding that the domestic logistics industry is woefully inefficient.

Logistics spending is roughly equivalent to 18% of GDP, higher than in other developing countries (India and South Africa spend 13-14% of GDP) and double the level seen in the developed world. Li Keqiang, the prime minister, recently echoed industry’s complaints that sending goods from Shanghai to Beijing can cost more than sending them to America.

Most warehouses are old and unmechanised. Goods are transferred up to a dozen times from vehicle to vehicle as they make their way across the country. There are no cargo hubs that help link freight from rail to road. The decrepit and overloaded lorries that ply the new highways are unable to find a return cargo on more than one third of their trips.

China has over 700,000 trucking operators, most of them one-man outfits. (America has about 7,000.) Scale is essential to the business, but the top 20 firms together make up barely 2% of the market. Nancy Qian of KXTX, a logistics firm, observes that companies compete so fiercely on price that most barely make any money, and so lack the funds needed to modernise or achieve economies of scale.

The industry is carved into niches, making it hard for integrated service providers to emerge. Sleepy state-owned enterprises such as Sinotrans and China Post control the markets for air freight and domestic post. Foreign express-delivery firms are salivating over the market but FedEx and UPS, for example, have been granted only limited licences for domestic delivery. More importantly, foreign firms are burdened with high costs that make it hard to compete for frugal customers against lean local rivals.

For all firms, local or foreign, a tangle of regulations, local protectionism and corruption makes getting goods across China a problem. Logistics, broadly defined, falls under the authority of nine ministries and commissions. Local governments often levy taxes on operators and demand they obtain special licences to operate. There are also heavy tolls on China’s roads, and lorries are restricted from entering most urban areas so must transfer goods onto smaller vehicles.

via Logistics: The flow of things | The Economist.

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