The development of the logistics industry played an important role in China's economy in 2006. It will maintain steady growth in 2007, the China Federation of Logistics and Purchasing said.

In 2006, the value of the internal Chinese logistics industry exceeded 59.6 trillion yuan, increasing 24 percent year-on-year, according to a statement jointly released by the federation and the National Bureau of Statistics. The growth was mainly backed by surging demand for logistics services for industrial products and imported goods, the statement said.

The added value of the industry reached 1.41 trillion yuan in 2006, growing 12.5% year-on-year.

The federation foresees the demand of logistics in China growing by 15% in 2007, with total logistics costs increasing by 11%, the China Federation of Logistics and Purchasing said.

Ding Junfa, vice-chairman of the federation, attributed the growth of the industry to the development of the national economy, which lifted the demand of logistics services. He expects the industry to see calm and assured development this year.

The ratio of the cost of logistics and GDP has continued to decrease since 2003, indicating the industry is more efficient and profitable.

According to Ding Junfa, the logistics industry is contributing more to China's economy. In 2006, it accounted for 17.1% of the overall added value of the country's tertiary industry.