[090717.ENBIZ] China Looks to Reduce Logistics Costs and Boost Efficiency

CHINA is looking at ways to reduce logistics costs and improve logistics efficiency, according to the State Council of the People's Republic of China.

The nation will focus on enhancing road transportation through improved traffic administration and law enforcement, while still cutting red tape. Tax policy is also to be overhauled and toll charges are to be set to "reasonable levels" to cut costs, the council said.

A recent guideline approved at a State Council executive meeting chaired by Premier Li Keqiang, indicated that support will be provided in the form of urban planning and land use, various logistics centres at national levels will be developed, logistics infrastructure will be reinforced, and rail freight service will be improved and integrated with other transportation modes, American Shipper reported.

China also plans to establish an integrated nationwide cargo-clearance system this year in an effort to reduce cargo clearance times by one-third. In addition, more means of financing will be made available to companies in the logistics sector, the council said.

"The logistics sector is the basis of strategic importance for the market economy," Premier Li said. "Lower logistics costs and higher efficiency should be highly prioritised this year."

Statistics from China's National Department and Reform Commission (NDRC) show that combined logistics expenditures in 2016 totalled CNY11.1 trillion (US $1.6 trillion), up 2.9 per cent from 2015, state-run Xinhua news agency reported. The figure accounted for 14.9 per cent of China's GDP in 2016, down 1.1 percentage points from 2015 levels and the fourth consecutive annual decrease, the council said.

Even so, Premier Li said: "China's logistics costs are still on the higher end in the world."

The NDRC illustrated that China's total value of social logistics goods stood at CNY229.7 trillion in 2016, and gross revenue of the logistics industry reached CNY7.9 trillion, year-over-year increases of 6.1 per cent and 4.6 per cent, respectively, according to Xinhua.

Source : HKSG.