Transport minister: China to cut logistics costs and boost efficiency

Chinese Minister of Transport Liu Wei said on Wednesday that a unified and open transportation market is an essential part of the unified national market, and accelerating the establishment of such a market requires reducing overall logistics costs. 

Minister Liu made the remarks at the Ministers' Corridor of the third session of the 14th National People's Congress (NPC).

The total logistics cost in society consists of three main components: transportation, warehousing and management, with transportation costs accounting for over 50 percent.

The Ministry of Transport, in collaboration with relevant national departments, has developed a plan for reducing costs, improving quality and enhancing efficiency in transportation and logistics. It also formulated implementation plans across five sectors: railways, highways, waterways, civil aviation and postal services.

In 2024, overall logistics costs nationwide were reduced by approximately 400 billion yuan (about $55 billion), with transportation costs decreasing by 280 billion yuan (about $38.5 billion), about two-thirds of the total.

According to Liu, the Ministry of Transport will implement various measures to achieve further progress in fostering a unified and open transportation market, and enhancing cost reduction, quality improvement and efficiency in transportation and logistics.

(Cover: Chinese Minister of Transport Liu Wei at the Ministers' Corridor of the third session of the 14th NPC in Beijing, China, March 5, 2025. /VCG)