China To Streamline Logistics
The Chinese government has proposed an overhaul of China’s logistics industry and infrastructure.
According to a recent report in the Ministry of Commerce’s newspaper, industry experts are promoting standardization and streamlining for the nation’s logistics network. Changes could limit the number of east-west and north-south domestic shipping corridors, create new logistics hubs, and boost transportation efficiency for goods exported to Russia, central Asia, Europe and Southeast Asia.
The government’s plan calls for more efficiently integrating multimodal transportation systems to highways, railways, and seagoing vessels. The report noted that government officials have decided they should take an active part in building the network, not surprising given the nature of the regime on the mainland of China.
Logistics planning expert Tan Xiaoping of the Ministry of Transport has proposed forming a network of six north-south and five east-west logistics channels to handle more than 70 percent of all goods shipped domestically. It’s not clear from the report whether his suggestion will be approved by the government.
The international branch of the planned network would focus on seven growth areas, including an Asia-Europe land bridge—already in progress in the form of China’s One Belt, One Road initiative—a corridor linking China to Southeast Asia, and a connection to the Indian Ocean through Myanmar.
An action plan for executing the plan for the new logistics network is expected to be announced by the government soon.
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