Some people, especially local officials in small cities, are worried about the flow of passengers. What will they do if it is found that their airport is not going to be used very frequently?

These arguments should be looked at very seriously. Primarily it is because of the passenger traffic. If you just look at the problem from the passenger side, most small cities don't have the income level to be able to fly very frequently. But as China develops, more and more people will reach the income level. This is the 21st century; we should not just look at the next five years, but the next 100 years. You want to keep these inland cities connected.

There is another thing I often mention, "highways." When you construct a highway on the ground, it requires billions of government dollars. However, a "highway" in the sky is paid for by an individual company. There are as many "highways" in the sky as a company can afford. They connect very quickly and efficiently. The key to commercial success is no longer location, location, location, but accessibility, accessibility, accessibility. The three "A"s are replacing the three "L"s. This is an understanding of airports.

Logistics has become a rising industry with the development of economic globalization. The Kenan Institute and China's top university Tsinghua have established a joint research center that focused on logistics and economic development. The main courses include supply-chain management, corporate governance, logistic infrastructure and networks and so forth. In your opinion, how are these programs working?

The government is allowing international giants to come in and set up their operations. The government is also involved in the training programs where they are using the latest tools and software. It has encouraged partnerships between domestic and international trucking firms. China's advancement in logistics will place it in a much better position on the global stage.

Beijing Capital International Airport is currently under construction for 2008 Olympic Games. The whole expansion project will be expected to be completed by the end of 2007. What do you think is the most pressing issue about logistics? Do you think Beijing is ready?

Beijing is not ready now, but Beijing will be ready in 2008. The Chinese Government is putting in place the infrastructure. They want the people--athletes, observers--to move around very efficiently. Anticipating problems is the issue of crisis management. So if something happens in terms of natural disaster, the Central Government is working diligently so that the games would still continue.

Will there be challenges? Absolutely! Millions of people will come in. I have confidence that the Chinese Government will minimize the problems and optimize the chances everything going on smoothly.