VICE Chairman of China Federation of Logistics and Purchasing (CFLP) He Dengcai said that China's logistics industry will receive greater support from the central government by loosening control on the industry, Xinhua reports.

Mr He said China will revise powers of local government in the examination and approval process.

Beijing, he said will also open investment in the logistics industry by simplifying examination and approval process, and opening up more state-owned sectors like railways to private investors.

The government will also apply taxation reform to a wider scope to cover railway and postal service. The reform will later be expanded to other industries like construction, real estate and finance.

Mr He said some other development trend is also unveiling greater potential in China's logistics industry.

China's policy to stimulate domestic demand is taking effect. Logistics, being a support to the implementation of the policy, is getting greater attention from the government.

China's urbanisation, which involves transferring of 100 million people from rural areas to cities, is generating more logistics demand.

Cross-regional cooperation between regions like Yangtze River Delta, Pearl River Delta and Bohai Economic Rim is resulting in upgrade of traffic infrastructures and logistics services.

Growing international logistics is also leading to development of cross-border routes like the Silk Road and the 21 Century Maritime Silk Road, which in return brings greater convenience to the logistics industry.

China is aiming to upgrade its industry and has put service industry, which logistics is a part of, on the top of the agenda.

Mr He also predicted that the medium and long-term national development plan for the logistics industry will be rolled out this year.