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Sino-American Logistics Council (SALC)
The US-China logistics & transportation relationship
The U.S. - China relationship is the most important economic partnership of the 21st Century that can be
enhanced through collaboration within transportation and logistics. In 2012, China’s overall trade with
the U.S. numbered $536 billion making the U.S. its number one trading partner. The logistics system is
the conduit for this trade. Businesses depend on a safe, reliable and efficient transportation system to
move products throughout the global supply chain. With so much at stake, bilateral cooperation in
transportation and logistics is critical to both countries.
According to the China Federation of Logistics & Purchasing (CFLP), China’s logistics cost as a percentage
of GDP in 2012 was at 18%, about double that of the U.S. at 8.5%. Reducing logistics costs is a major
issue that needs to be addressed in order for China to remain competitive.
Source: CSCMP 2013 State of Logistics Report
China’s 12th Five-Year Plan calls for;
“Accelerate the establishment of a professional, information-based modern logistics system,
vigorously develop 3rd
party logistics, prioritize the integration and use of existing logistics
resources… improve logistics efficiency and reduce logistics costs.”
It also specified several specific items including promote agricultural products and bulk mineral products
logistics, optimize the development of regional distribution systems, orderly development of logistics
parks and promote modern logistics management. China will invest 6.2 trillion yuan to upgrade its
transportation infrastructure during the 12th
Five-Year Plan.

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The U.S. logistics industry is highly developed and amongst the best in the world. There is a great
opportunity for American industry to benefit by sharing management knowhow and technology
applications to help China improve its logistics efficiency.
China’s “Going Out” strategy encourages its domestic companies to invest overseas to acquire hard
assets or management knowhow. Expanding overseas not only help Chinese companies extent their
markets but allows them access to technology and management resources. The China logistics industry,
primarily SOE’s and large and medium size private enterprises has shown great interest in becoming
more global to improve their company’s competitiveness.
The U.S. has a large and diverse logistics industry providing ample opportunities for Chinese investors.
While the United States is welcoming of Chinese capital investment, there are many cultural and
economic hurdles to overcome before succeeding in this market.
It is plain to see that improved communications and collaboration between the U.S. and China is of
mutual benefit.
Current initiatives for dialogue and collaboration
They are currently a number of US-China cooperation initiatives in the logistics & transportation field
including:
Initiated by ASTL-China
Sino-American Logistics Conference (SALCE)
Held annually in China since 2007, SALCE aims to promote cooperation between the United States
and China in the Sino-American logistics and transportation fields.
Yangtze Mississippi Rivers Forum (YMF)
The YMF, the first high- level, U.S.-China dialogue regarding inland waterway transportation and
economic development, seeks to enhance bi-lateral economic cooperation and idea exchanges for
inland port and waterway development.
American Cold Chain Working Group (ACCWG)
The ACCWG was formed to assist U.S. companies operating in China’s underdeveloped cold chain
logistics sector through collaboration, information sharing, and education.
US-China Transportation Safety Institute (TSI)
An exchange platform for the cooperation between China and U.S. in transportation safety jointly
established by ASTL-China and China Academy of Transportation Sciences.

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Under American Chamber of Commerce
US-China Aviation Cooperation Program (ACP)
The ACP provides training and technical cooperation for Chinese aviation professionals in China and
the U.S. promoting industry-wide cooperation and aviation safety.
American Rail Working Group (ARWG)
Launched in 2009, the ARWG improves cooperation between U.S. rail companies and the Chinese
Ministry of Railway sharing market trends and information regarding railway development in China.
Held by U.S. DOT and Chinese MOT
US-China Transportation Forum (TF)
The TF is a bi-lateral governmental forum that addresses key issues in U.S. China transportation and
seeks to improve cooperation in key transportation areas.
The American Society of Transportation and Logistics
The American Society of Transportation and Logistics (ASTL) is the premier professional
organization for transportation and logistics professionals. Founded in 1946 by industry
leaders, ASTL strives to promote and ensure the highest level of global standards through
professional certification in the field of transportation and logistics. ASTL certification
programs are used throughout business, academia, and governments worldwide. Our
worldwide advocacy for logistics and transportation is supported by our globally-recognized
credentials, our extensive research journal, and our professional development opportunities.
ASTL's mission is to advance knowledge and career progression through life-long learning in
the fields of transportation, logistics, and supply chain management. ASTL's membership of
shippers, carriers, educators, students, consultants, and third-party logistics individuals are
dedicated to continuing education and committed to raising the professional standards in the
industry.
In 2007, ASTL established a permanent office in Beijing, China. ASTL-China’s focus is on
expanding the ASTL’s education and training components to China-based companies and
universities, as well as fostering cooperation initiatives between American and Chinese
companies and universities.

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The Sino-American Logistics Conference
The most successful and enduring platform for US-China exchange on logistics and transportation has
been the Sino-American Logistics Conference (SALCE). The American Society of Transportation and
Logistics (ASTL) China office along with our Chinese partners have been holding SALCE annually in China
since July, 2007. The conference promotes cooperation between the United States and China in the
logistics and transportation fields. High-level representatives from the transportation & logistics industry,
research institutions and United States and Chinese government participate. The inaugural conference
was the first large-scale, high-level dialogue between the U.S. and China after China’s opening up of its
logistics industry, and continues to be the premier event for U.S. - China logistics and supply chain.
SALCE has led to stronger bilateral collaborations helping American and Chinese businesses to meet
potential partners and expand their business overseas.
Susan Kurland, U.S. DOT Deputy Secretary at 2012 Sino-American Logistics Conference in Shanghai
Need for an ongoing platform
SALCE has been successful as an annual event to promote US-China cooperation in logistics &
transportation. However, both sides have expressed the need for a permanent platform for government,
businesses and individuals to facilitate dialogue, coordinate exchanges and promote business
opportunities between the two countries.
There currently isn’t an on-going platform for industry (ports, cities, shippers, carriers, educators) of the
two countries to engage their counterparts or supply chain partners for dialogue on transportation &
logistics issues. Having an on-going platform will raise its profile and help move collaborative initiatives
forward on important issues such as:
 Increase bilateral business investment opportunities in transportation & logistics infrastructure.
 Sharing of experiences on economic development and transportation planning
 Facilitating trans-pacific trade by streamlining the supply chain, remove bottlenecks, improving
efficiency and reducing cost.

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 Lessen environmental impact of the supply chain – reduce vehicle emissions, reusable
containers, packaging design, etc…
 Improve market access for businesses
 Promoting the use of common standards and procedures
 Promote use of technology
 Development of intermodal freight transportation
 Provide access to government to understand regulatory environment
Collaborating on these opportunities of mutual interest strengthens the bilateral relationship between
the US and China.
Establishing the Sino-American Logistics Council (SALC)
The leadership of ASTL supports the work that the China office has been doing in this area, but feels that
the establishment of an independent entity would better serve this purpose. The solution is to form a
new entity which carries out the mission of the Sino-American Logistics Conference on an ongoing basis.
For this reason, the Sino-American Logistics Council (SALC) is being established as an independent non-
profit organization. ASTL will continue to support the work of the Council but will not play an active role.
Functions:
 The SALC will be a platform across all transportation modes to engage directly with industry
leaders and the US and Chinese governments.
 The SALC will hold high-level technical exchanges and conferences. SALC is also a framework
whereby companies engage with policy makers to collaborate on issues such as standards, trade
promotion, and regulations.
 The SALC will organize high-level training programs and trade missions between to the US and
Chinese for partners and government officials.
 The SALC will bring existing programs organized by ASTL-China, the Sino-American Logistics
Conference and Yangtze Mississippi Rivers Forum, under the SALC umbrella to better leverage
available resources and improve coordination.
 SALC will produce an annual publication with information about the logistics industry of the
respective countries.
 SALC will conduct independent research and publish reports for members and sponsors.
Structure:
 SALC will be self-sustaining funded by members, sponsors and revenue generate from related
activities.
 SALC will have an office in both the U.S. and China
 An American Chair and a Chinese Chair will be appointed.
 A high-level advisory board comprising of industry leaders, thought leaders and past officials
from both nations will guide the work of SALC.

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 SALCE membership is open to American & Chinese government entities, businesses and
individuals. Membership levels will be developed to fit the different needs and business cultures
of American & Chinese membership.
 Industry associations may join as supporting organizations.
Sub-committees and working groups:
 Sub-committees and working groups will be formed to work on specific initiatives and offer
networking opportunities as directed by the advisory board. Examples include:
o Bilateral investments – facilitate overseas investments through promoting investment
opportunities, discuss regulatory issues, financing options, risk management strategies,
etc.
o Ports – partnerships on green port initiatives, port planning, intermodal port, marketing,
technology etc.
o Cities – partnerships on infrastructure development, intelligent transportation, reducing
congestion and pollution, and urban logistics etc.
o Cold Chain Logistics – partnership to promote China’s underdeveloped cold chain
logistics sector through collaboration, information sharing, and education to improve
food safety and reduce waste and spoilage.
o Training and Education – partnership between schools for student and faculty exchange,
program development, joint research etc.
o Conference organizing committee – select of location, themes, speakers and scheduling
of council conferences.
o Awards committee – facilitate the recognition of contribution to the cooperation
between the US and China in the logistics and transportation field.