Page 7 - SCBJ-201612
P. 7
November 2016
China rail freight grows for first time in 32 months
In August, China’s rail cargo volume showed signs of growth for the first time in 32 months. The National Bureau of Statistics figure
grew by 1 percent year-on-year to 279 million tons. The worst year-on-year performance was recorded in October 2015, when rail
freight volume dropped by 16.3 percent. However, August’s positive figures are not enough to reverse the decline of the first eight
months of this year. The Bureau reported 2.1 billion tons of goods transported by China Railway Corp. (CRC), a 6.2 percent decrease
from last year. CRC is now planning to invest in 6,600 container flatcars and 9,000 double decker flatcars to boost capacity, despite the
company having lost RMB 7.3 billion in the first half of this year, bringing its debt total up to RMB 4.2 trillion.
China issues plan to lower
logistics costs
The State Council issued a plan to lower logistical
costs, detailing its aims to reduce ratio of costs to 8.5
percent for manufacturers and 7.3 to 7.7 percent for
wholesale and retail sellers by 2018. The government
plans to do this by cutting taxes and fees, and also
streamlining reviews and approvals for logistics
companies, with additional requirements for improved
network efficiency and better connectivity between
motorways, railways, waterways and air routes.
Customs clearance will be sped up and delivery
services will be extended further into rural areas, with
financial support and adequate land supply designated
for logistics purposes.
Photo from bing.com
Article by Dezan Shira. Since its establishment in 1992, Dezan Shira & Associates has been guiding foreign clients through Asia’s
complex regulatory environment and assisting them with all aspects of legal, accounting, tax, internal control, HR, payroll and
audit matters. As a full-service consultancy with operational offices across China, Hong Kong, India and emerging ASEAN, we
are your reliable partner for business expansion in this region and beyond.
For inquiries, please email us at info@dezshira.com. Further information about our firm can be found at: www.dezshira.com
5
China rail freight grows for first time in 32 months
In August, China’s rail cargo volume showed signs of growth for the first time in 32 months. The National Bureau of Statistics figure
grew by 1 percent year-on-year to 279 million tons. The worst year-on-year performance was recorded in October 2015, when rail
freight volume dropped by 16.3 percent. However, August’s positive figures are not enough to reverse the decline of the first eight
months of this year. The Bureau reported 2.1 billion tons of goods transported by China Railway Corp. (CRC), a 6.2 percent decrease
from last year. CRC is now planning to invest in 6,600 container flatcars and 9,000 double decker flatcars to boost capacity, despite the
company having lost RMB 7.3 billion in the first half of this year, bringing its debt total up to RMB 4.2 trillion.
China issues plan to lower
logistics costs
The State Council issued a plan to lower logistical
costs, detailing its aims to reduce ratio of costs to 8.5
percent for manufacturers and 7.3 to 7.7 percent for
wholesale and retail sellers by 2018. The government
plans to do this by cutting taxes and fees, and also
streamlining reviews and approvals for logistics
companies, with additional requirements for improved
network efficiency and better connectivity between
motorways, railways, waterways and air routes.
Customs clearance will be sped up and delivery
services will be extended further into rural areas, with
financial support and adequate land supply designated
for logistics purposes.
Photo from bing.com
Article by Dezan Shira. Since its establishment in 1992, Dezan Shira & Associates has been guiding foreign clients through Asia’s
complex regulatory environment and assisting them with all aspects of legal, accounting, tax, internal control, HR, payroll and
audit matters. As a full-service consultancy with operational offices across China, Hong Kong, India and emerging ASEAN, we
are your reliable partner for business expansion in this region and beyond.
For inquiries, please email us at info@dezshira.com. Further information about our firm can be found at: www.dezshira.com
5
