Xiangyu Shell - Gas Station Vehicle Traffic Monitoring Survey
Company overview
Xiamen Xiangyu Co., Ltd. (referred to as "Xiamen Xiangyu") is one of China's leading supply chain management and comprehensive service enterprises, possessing strong regional resource integration capabilities and industrial synergy advantages. On March 5, 2018, Xiangyu signed a Joint Venture Agreement with Shell (China) Limited, establishing Fujian Xiangyu Shell Petroleum Co., Ltd. with a registered capital of RMB 1.2 billion, Xiangyu holding 51% and Shell China holding 49%. The joint venture primarily focuses on retail fuel sales operations in Fujian Province, combining Shell's international expertise in fuel technology and brand operations with Xiangyu's local strengths in regional layout and government relations to advance the development of the gas station network in Fujian Province.
Research background
The scientific accuracy of gas station site selection directly determines the sustainability and profitability of retail fuel operations. Given the substantial capital investment and project management cycles involved in gas station construction, Xiangyu Shell urgently requires precise data to support site selection decisions during the new station development phase. Vehicle traffic, a key indicator affecting gas station revenue, provides valuable insights into potential fuel conversion rates and return on investment cycles. Therefore, the two parties decided to conduct on-the-ground, real-world vehicle traffic monitoring through an independent third-party research institution to ensure the rationality of the construction plan and the scientific evaluation of investment returns.
Research scope
Throughout 2019, CEIDEA Research was commissioned by Fujian Xiangyu Shell Petroleum Co., Ltd. to conduct systematic on-site vehicle traffic monitoring in several target areas across Fujian Province. The fieldwork was carried out in batches along major transportation corridors, urban connecting roads, logistics hubs, and proposed gas station candidate sites. Using a combination of high-frequency fixed-point observations and automated vehicle flow recording, the study collected and statistically analyzed data on vehicle inflows and outflows, vehicle types, and dwell behaviors across different time periods throughout the day. The collected data were then correlated with factors such as road classification, surrounding infrastructure, density of competing stations, and fuel demand characteristics, resulting in a comprehensive traffic volume and commercial potential scoring model for each site.
Expected outcomes
This study will provide Fujian Xiangyu Shell Petroleum with systematic and accurate vehicle flow data, enabling the company to scientifically evaluate the traffic potential and fuel conversion rate models of various candidate sites, and to determine priority areas for gas station development and expected return on investment. The research findings will serve as foundational data for subsequent gas station network planning, investment timing control, and marketing strategy formulation, further enhancing Shell's operational efficiency and market share in Fujian Province. The results will also support the joint venture's steady entry into the regional retail fuel market, maximizing the synergistic advantages of both brands.
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