Improving Transportation Network: China to cut logistics cost by 120.9 bln yuan in 2019

World
Europe

01:30

China continues to improve its overall transportation network and lower logistical costs. The Ministry of Transport says that 2019 may see savings of well over 100 billion yuan. CGTN's Mark Fontes has more.

In a country of over 1.4 billion people, an effective transportation network is a must. In 2018, China's State Council issued a three-year plan to advance restructuring transportation.

The ministry says this year, the nation will concentrate on removing highway toll booths at provincial boundaries; with the goal of eliminating all of them by 2021. But the ministry says many difficulties exist.

WU CHUNGENG SPOKESPERSON, MINISTRY OF TRANSPORT "The difficulties mainly concern the software transformation at toll points, as well as business entities' capital settlements and the displacement of staff."

Meanwhile, China aims to lower logistical costs by about 121 billion yuan in 2019. The decrease will be made through a number of measures such as optimizing the transport structure and streamlining traffic service.

WU CHUNGENG SPOKESPERSON, MINISTRY OF TRANSPORT "The work will focus on the regulation of arbitrary charges, fines, examinations and approvals, and cut charges on highways, and at ports and airports."

The ministry also says China will continue to transfer some road transport volume to mass transit networks.

Experts predict a 15 percent increase in railway and waterway transportation volume this year.

Mark Fontes, CGTN.