Damco, formerly known as Maersk Logistics, has recently decided to set up an operation in Chengdu rather than Chongqing. The wider customer base in the Sichuan capital was cited as the main reason, according to a reliable source. The more professional way that Chengdu government conducts business in general was said to be another important factor. Damco already had a business licence until now it has never been used. The company plans to develop the new operation as a regional hub for the foreseeable future.

Chongqing has established a fund to develop its logistics industry, Xinhua reported. The city government plans to spend Rmb200m a year subsidising its major logistics operations and addressing the weakest links in the sector.

In competition with Chengdu, Chongqing hopes to become the logistics hub for southwestern China. In order to achieve this goal, the city will spend Rmb164.3bn on 175 logistics projects.