China plans £13.9bn cut in logistics costs
From Logistics Manager Magazine,
Published Friday 29 March 2019 11:13 am
China plans to reduce logistics costs by nearly 121 billion
yuan (£13.9 billion) this year, according to the Ministry of Transport.
The plan is to continue to increase rail freight volume, upgrade the water transport system, regulate highway freight transport and speed up multimodal transport in a bid to improve its logistics network and optimize its structure, said spokesman Wu Chungeng.
Last year logistics spending in China rose 9.8 per cent to 13.3 trillion
yuan (£1.5 trillion) – that’s 14.8 per cent of the country’s GDP.
The ministry has been working to reduce logistics costs and raise
efficiency. It reduced logistics spending by 56bn yuan (£6.4bn) in 2016,
68bn yuan (£7.8bn) in 2017 and 98bn yuan (£11.2bn) in 2018.
The plan for 2019 includes further integration of important ports and
harbours into the inland multimodal transport and logistics network,
which will connect them with more railways and highways and enable
improved cargo interoperability.
The country will also expand the use of pilot programs to deepen
reform of the administrative law enforcement system in the logistics
industry to improve its efficiency; and it will streamline certain fees
related to ports, highways and airports, he said. In addition, the
ministry will step up its efforts to manage the effects of eliminating
highway toll stations at provincial boundaries.
The ministry also called for small and medium-sized enterprises to forge alliances for common development to consolidate the fragmented logistics sector.