Tumd Right Banner in Baotou, Inner Mongolia autonomous region, is to develop a smart logistics industry following a cooperation agreement it recently signed with Beijing-based G7 Networks and Inner Mongolia Jinjiuchenyun Logistics Service Co, according to Baotou Daily.

According to the cooperation agreement, Tumd Right Banner will form a new joint venture company with the two companies, and develop a G7 smart logistics project, in order to promote the development of the digital economy in the banner.

The project is expected to attract an investment of 1.5 billion yuan ($230 million) and be implemented in three stages.

The first phase is expected to last from November 2020 to April 2021; the second phase is expected to last from May 2021 to April 2022; and the third phase is expected to start in May 2022.

In the first phase, a smart logistics supervision platform will be built to strengthen digital supervision and achieve localized tax retention.

The second phase will focus on the development of a smart logistics industry chain, promote cooperation between platforms and local financial institutions, and provide financial services for logistics companies in the banner and in the wider city.

The third phase is to build a smart logistics digital industrial park. The park will focus on building an autonomous driving demonstration base, a new industrial city integrating smart industry R&D centers, joint laboratories, apartments for staff, offices, and industrial facilities.

According to G7 officials, G7 Networks will set up a logistics headquarters in Tumd Right Banner to create an overall hub for smart logistics.

It plans to use the promotion of two projects - Dachengxi Coal Logistics Park and New Industrial Park - as a starting point to realize the digitization of production factors, logistics factors, and smart logistics.

In recent years, Tumd Right Banner has continuously promoted the development of its smart logistics industry and has worked to inject more vitality into the higher-quality development of its regional economy.

The banner has built a modern comprehensive logistics base serving the Hohhot-Baotou-Ordos city cluster, and accelerated the cultivation of modern logistics enterprises with domestic competitiveness and influence.