Linyi, know as the "Logistics Capital of China" located in East China's Shandong province, is facing new challenges after 40 years of development.

In 1986, when individuals were allowed to purchase vehicles for passenger and freight transport, an increasing number of people in Linyi ventured into related businesses, starting the city's journey to becoming a logistics hub.

Linyi experienced a golden period in logistics development from 2000 to 2015. In 2005, the Linyi municipal government aimed to establish a modern commercial and logistics hub. In November 2007, the Jinlan Modern Logistics Base was completed and became operational, boosting the development of Linyi's dedicated logistics services.

However, since 2016, Linyi's logistics sector has faced turbulence and consolidation, with 60 percent of dedicated logistics services operating at a loss or with minimal profits. Transformation became crucial for the sector's survival.

Linyi's logistics sector boasts advantages of a comprehensive network, fast delivery, and competitive pricing. Nevertheless, with the advancement of information technology necessitates a transformation and upgrade process to ensure robust growth.

Experts indicate that Linyi's logistics industry lags behind in high-end development due to issues like fragmentation, low efficiency, and weakness. To overcome these challenges, it is urgent to break free from land constraints, strengthen the supply chain, and address obstacles hindering the flow of funds, technology, talent, and data into the commercial sector.

The Jinlan Logistics Base in Linyi, known as the "Logistics Capital of China", in East China's Shandong province. [Photo/WeChat account: gh_f8aa32671afe]