Page 222 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
2.5 Transportation and Logistics
Background water transportation systems in China without a unified
system, making coordination very difficult. Resources
Piggyback transportation is were wasted, costs were high, and the environment was
polluted. But that situation is set to change in an industry
becoming a new way with annual revenue of more than 3 trillion yuan. With
the advancement of supply-side reform, the Belt and
to address China’s logistics woes in the era of big data. Road Initiative, and the improvement of information
technology, Chinese authorities are now encouraging
The system allows road and rail transportation to be the development of multimodal transportation, with the
State Council requesting the creation of more such routes
combined into one. Trucks can be loaded onto a train. (Yu, Piggyback).
When the train reaches its destination, the trucks are then Train and Rail
unloaded and continue carrying goods to places beyond Air cargo has historically provided the critical link that
makes the fashion industry model work; however, news
the trains’ reach. This mode of transportation saves costs, that a shipment of designer jeans left Wuhan, China, by
train and arrived at Venissieux-Saint-Priest near Lyon
improves efficiency and eases congestion on highways. France 18 days later may threaten to upend aviation’s
primacy in the business. Vincent Allal, Head of KAPORAL’s
This mode of transportation will restructure the logistics supply chain noted that, in addition to reducing costs,
the new model appeased consumers’ concerns about
industry and shape a new model in the industry. The first the environmental impact of “fast fashion.”“The transit is
relatively short, we have halved our bill on this transaction
piggyback transportation route will link a logistics park and we are very sensitive to the low environmental impact
of this solution,” he explained. The rail link is central to
in Erdos, in North China’s Inner Mongolia Autonomous the China-backed “Silk Road” that runs through China,
Kazakhstan, Russia, Belarus, Poland, Germany and France.
Region, with a port in Huanghua, Hebei Province, about With geopolitical conditions relatively muted along
the route – at least from a freight security perspective
1,000 km away. Operation is expected to begin by 2018 – manufacturers now have a viable alternative to air
cargo. However, Bangladesh, where numerous first-world
(Yu, Piggyback). fashion designers source their garments, has struggled
with security lately and faces a months-long embargo on
Piggyback transportation is a form of multimodal direct cargo flights (King, Could Silk Road).
transportation, which combines at least two of the
following logistics means: road, rail, sea and air, within In 2013, Chinese President Xi Jinping launched a
one freight contract for the shipper. It is particularly suited new economic initiative under the banner “One Belt,
for mid- and long-distance transportation. In the United One Road.” Said to be the largest economic undertaking
States, truck-rail, truck-sea and rail-sea transportation since the Marshall Plan following WW II, “One Belt, One
links are the major transportation means for routes Road” was focused on expanding China’s economic and
over 800 kilometers, while in Europe, these forms of political reach to and within the countries along the old
transportation accounted for about 25 percent of all Silk Road that connected China in the east to Europe in
transportation means in 2015. Such transportation links the west. Last year, over 1,700 freight trains traveled this
are rare in China, however, partly due to tight control over
the rail network, which is considered one of the most
effective means of mid- and long-distance transportation
in such a large country. The railway system has long been
viewed merely as a “transport vehicle” rather than a part
of the logistics industry. In addition, China has many
railway bureaus, each handling its own business without
much coordination. Trucks, on the other hand, have taken
over about 78 percent of mid- and long-distance freight
transport in the country. They not only consume large
amounts of energy, but also cause congestion and emit
pollutants (Yu, Piggyback).
It all seems like a no brainer, but different
governmental departments controlled rail, road, and
222
2.5 Transportation and Logistics
Background water transportation systems in China without a unified
system, making coordination very difficult. Resources
Piggyback transportation is were wasted, costs were high, and the environment was
polluted. But that situation is set to change in an industry
becoming a new way with annual revenue of more than 3 trillion yuan. With
the advancement of supply-side reform, the Belt and
to address China’s logistics woes in the era of big data. Road Initiative, and the improvement of information
technology, Chinese authorities are now encouraging
The system allows road and rail transportation to be the development of multimodal transportation, with the
State Council requesting the creation of more such routes
combined into one. Trucks can be loaded onto a train. (Yu, Piggyback).
When the train reaches its destination, the trucks are then Train and Rail
unloaded and continue carrying goods to places beyond Air cargo has historically provided the critical link that
makes the fashion industry model work; however, news
the trains’ reach. This mode of transportation saves costs, that a shipment of designer jeans left Wuhan, China, by
train and arrived at Venissieux-Saint-Priest near Lyon
improves efficiency and eases congestion on highways. France 18 days later may threaten to upend aviation’s
primacy in the business. Vincent Allal, Head of KAPORAL’s
This mode of transportation will restructure the logistics supply chain noted that, in addition to reducing costs,
the new model appeased consumers’ concerns about
industry and shape a new model in the industry. The first the environmental impact of “fast fashion.”“The transit is
relatively short, we have halved our bill on this transaction
piggyback transportation route will link a logistics park and we are very sensitive to the low environmental impact
of this solution,” he explained. The rail link is central to
in Erdos, in North China’s Inner Mongolia Autonomous the China-backed “Silk Road” that runs through China,
Kazakhstan, Russia, Belarus, Poland, Germany and France.
Region, with a port in Huanghua, Hebei Province, about With geopolitical conditions relatively muted along
the route – at least from a freight security perspective
1,000 km away. Operation is expected to begin by 2018 – manufacturers now have a viable alternative to air
cargo. However, Bangladesh, where numerous first-world
(Yu, Piggyback). fashion designers source their garments, has struggled
with security lately and faces a months-long embargo on
Piggyback transportation is a form of multimodal direct cargo flights (King, Could Silk Road).
transportation, which combines at least two of the
following logistics means: road, rail, sea and air, within In 2013, Chinese President Xi Jinping launched a
one freight contract for the shipper. It is particularly suited new economic initiative under the banner “One Belt,
for mid- and long-distance transportation. In the United One Road.” Said to be the largest economic undertaking
States, truck-rail, truck-sea and rail-sea transportation since the Marshall Plan following WW II, “One Belt, One
links are the major transportation means for routes Road” was focused on expanding China’s economic and
over 800 kilometers, while in Europe, these forms of political reach to and within the countries along the old
transportation accounted for about 25 percent of all Silk Road that connected China in the east to Europe in
transportation means in 2015. Such transportation links the west. Last year, over 1,700 freight trains traveled this
are rare in China, however, partly due to tight control over
the rail network, which is considered one of the most
effective means of mid- and long-distance transportation
in such a large country. The railway system has long been
viewed merely as a “transport vehicle” rather than a part
of the logistics industry. In addition, China has many
railway bureaus, each handling its own business without
much coordination. Trucks, on the other hand, have taken
over about 78 percent of mid- and long-distance freight
transport in the country. They not only consume large
amounts of energy, but also cause congestion and emit
pollutants (Yu, Piggyback).
It all seems like a no brainer, but different
governmental departments controlled rail, road, and
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