China’s Cold Chain Due For Rapid Expansion After Pressure From Demand

A recent article titled China Struggles To Keep Up With Cold Chain Demand , (1) noted that in comparison to import traffic, the levels of exports in China exert the strongest pressure on its cold chain infrastructure at airports. This is thought to be due to cold room volumes on the export side of terminals being smaller than those on the import side. Others have called for enhanced investment in China’s railway to support the cold chain and the increasing demand for fresh food within the country. (2)

The past few months have seen some key developments within China’s cold chain. At the end of October reports emerged about a cold chain logistics center reaching completion in Panzhihua, with claims that investment is estimated to rest at 110 million Yuan. (3) Additionally, Envirotainer recently opened up a cold station in Shanghai, China to support the growing cold chain sector of the pharma industry.

Recent market reports have declared that the cold chain logistics industry is expected to "develop rapidly as demand for commodities like food, medicine and cosmetics increases in China." Labeled as a high-end sub-industry of logistics, the cold chain is due to attract significant investment over the next few years. (5)

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In regards to food, apparently the shelf life of products can be more than doubled if handled in a high performing cold chain logistics system. Losses felt by fresh food retailers can drop by up to 50 per cent if the life of perishable fruit is extended by a day to three days.

Case Study

Hossein Bakr of global healthcare company Novo Nordisk LLC, recalls a three year cold chain project in China - Tianjin which began in 2008. Mr Bakr, Senior Project Manager, explains that this project focused on the creation of a cold storage room to house medicine, with an area of approximately 2,000 square metres.

Objective

The most important objective for the cold storage area was that it held a homogenous temperature, and a reliable method of monitoring the temperature. Mr Bakr stressed the importance of the cold storage’s data monitoring abilities due to the direct repercussions upon patient safety: "if the temperature, is above or below or limits it will damage our product without our knowledge."

Challenges

Temperature Control

Temperature challenges with the creation of the room included unstable temperature levels, issues with high humidity inside the cold storage and frost inside the unit.

Tianjin’s harsh winter and summer conditions presented obstacles with part of the cold room being constructed with a wall that stood as an exterior wall to the whole building. As a result, engineering calculations were conducted so the temperature would not be influenced, alongside insulation between the inside and outside wall.

The temperature above the cold storage was another roadblock to navigate. Consultations were held with an engineering company to ensure that good room conditioning was employed above the cold storage.

Lighting systems inside the cold storage also required attention, in regards to the effect of the ultraviolet on the products and general energy conservation.

Fire Safety

The room’s fire safety requirements presented design and technical hurdles especially in regards to needed ceiling penetrations. The fire safety system of choice had the ability to provide warnings to those nearby and did not fill the cold storage system with sprinkler water.

Success

From a technical standpoint, successful results were achieved in the room’s temperature, which was homogenous with no large fluctuations from corner to corner or ceiling to floor.

Also, a computer based system was established for temperature monitoring purposes. Several temperature sensors were fitted in different locations inside the room and were critical system regulated. The system has remained stable for the last two years according to Mr Bakr.

Commenting on the project as a whole, he said: "Regarding cost and time schedule it was a good project without any delay, without any difficulties, so it was good for us."

Lessons Learned

"The key lesson: listen to our user. The user is the most important stakeholder to tell us exactly which kind of monitoring system they need for this project.

"It is also very important to [have a] reliable vendor, to choose the right material [and] people with experience that can do the job."

Resources

1. http://aircargoworld.com/china-struggles-to-keep-up-with-cold-chain-demand/ 2. http://www.4hoteliers.com/news/story/15015 3. http://www.freshplaza.com/article/148147/Panzhihua-Cold-Chain-Logistics-Centre-complete-by-end-of-the-year 3 4. http://www.pharmabiz.com/NewsDetails.aspx?aid=91545&sid=2 5. http://www.prnewswire.com/news-releases/cold-chain-logistics-industry-in-china-2018-2020-forecasts-now-available-at-rnrmarketresearchcom-500621991.html