The 2008 Beijing Olympic Games will generate as much as 43.2 billion yuan (US$5.22 billion) for the logistics industry and has seen interest from domestic and international companies.

Nu Yihong, a professor from Northern Jiaotong University, cited the huge cash p otential based on research of the Olympic Logistics System which is currently listed in Project 863 - the country's key high technology programme.

The research shows that more than 800,000 people will gather in Beijing during the Games and they will bring with them at least 1.2 million pieces of luggage and equipment.

The delivery, storage, packaging and processing of these articles will create great demand for the logistics industry especially due to the scattered venues of the Games, Nu said.

The city plans to use 32 local gymnasiums and stadiums and another five venues will be used in Tianjin, Shanghai, Qingdao, Shenyang and Qinghuangdao.

Many large domestic companies have shown an interest in putting in a bid for the Olympics, including the logistics division of the China Ocean Shipping (Group) Company (COSCO), China Railway Modern Logistics, China Post Logistics Co Ltd and the China Material Storage and Transportation Co.

Li Rougang, a manager from COSCO Logistics, said domestic companies have advantages in local networking, but foreign players are more experienced in information management and international logistics.

He said he hopes both domestic and international companies can co-operate during the Games.

Insiders say the official logistics company for the 2008 Olympic Games will be selected through a bid, but a date for a bid has not been finalized.

Zhang Wenjie, a professor who has also worked on the research, said the Olympic Games needs a huge logistics network.

It is a good time for domestic companies to seek business during the Games and larger shares in the domestic logistics market, he said.

The country's total logistics expenditure amounts to 1.9 trillion yuan (US$229 billion) and logistics makes up about 20 per cent of the nation's gross domestic product, according to official figures.

Many foreign logistics companies are jockeying for a position to grab a share in the nation's booming logistics business.

The Ministry of Foreign Trade and Economic Co-operation had earlier designated the logistics sectors of the three provinces of Jiangsu, Zhejiang and Guangdong and the nation's four municipalities of Beijing, Tianjin, Chongqing and Shanghai and the Shenzhen Special Economic Zone for opening up to foreign companies.

The move is the first step in realizing the country's promise to open up the logistics market in three years after its entry into the World Trade Organization.

(chinadaily)