Policy Focus | Ministry of Transport: Six Measures to Reduce Costs, Enhance Quality, and Boost Efficiency in the Transportation and Logistics Sectors
Release date:
2024-03-01
Author:
Jinhua Logistics
On February 28, the State Council Information Office held a press conference on how high-quality development in the transportation sector is supporting Chinese-style modernization. Minister of Transport Li Xiaopeng stated that over the years, China has achieved significant progress in reducing transportation and logistics costs; however, there remains a considerable gap compared with the requirements of high-quality development. Overall, the most pressing contradiction in current logistics operations is “low costs at individual links but high overall chain‑wide operating costs,” while low efficiency in resource allocation and circulation are key factors keeping logistics costs persistently high.
On February 28, the State Council Information Office held a press conference on how high-quality development in the transportation sector is supporting Chinese-style modernization. Minister of Transport Li Xiaopeng stated that over the years, China has achieved positive results in reducing transportation and logistics costs; however, significant gaps remain when compared with the requirements of high-quality development. Overall, the most pressing contradiction in current logistics operations is “low costs at individual links but high overall chain‑wide operating costs,” while low efficiency in resource allocation and circulation are key factors keeping logistics costs persistently high.
The fourth meeting of the Central Financial and Economic Commission, held on February 23, emphasized that reducing logistics costs across the entire economy is a crucial measure for enhancing economic efficiency. The starting point and ultimate goal of lowering logistics costs are to serve the real economy and the general public; the fundamental prerequisite is to keep the share of manufacturing broadly stable, while the main approaches involve structural adjustment and reform, effectively cutting transportation, warehousing, and management expenses.
Li Xiaopeng stated, This year, the Ministry of Transport will launch a special campaign to reduce costs, improve quality, and enhance efficiency in the transport and logistics sectors, implementing measures across six key areas:
First, we will accelerate the improvement of the integrated transportation service system and promote structural cost reductions, quality enhancements, and efficiency gains. The primary focus is on strengthening transportation infrastructure, with particular emphasis on enhancing the integrated service capabilities of railways and waterways, leveraging their advantages in long-distance bulk cargo transport. At the same time, we will harness the door-to-door convenience of road transport and the speed and efficiency of air transport, further optimizing the transport mix and promoting the integrated development of transport logistics and related industries.
Second, strengthen the efficient coordination of all links to drive systematic cost reduction, quality improvement, and efficiency gains. It is necessary to vigorously develop multimodal transport models featuring “single‑document” and “single‑container” systems, accelerate efforts to address shortcomings in last‑mile services in both urban and rural areas, and enhance the overall efficiency of international logistics supply chains.
Third, we will accelerate the development of a nationwide unified transportation and logistics market, and promote institutional measures to reduce costs, enhance quality, and improve efficiency. Continue to deepen reforms of the integrated transport system, as well as key-sector reforms such as railway reform and toll‑road reform, and establish and improve a tiered, categorized, and differentiated regulatory framework for priority areas.
Fourth, accelerate the development of smart logistics and green logistics, and promote technology-driven cost reduction, quality improvement, and efficiency gains. The main focus is on promoting the sharing of key data across multimodal transport, accelerating innovation in smart logistics, and significantly enhancing the greenness of technological equipment.
Fifth, strengthen the assurance of factor resources and promote comprehensive cost reduction, quality improvement, and efficiency gains. The Ministry of Transport, in coordination with relevant departments, continues to advance tax and fee reductions, ensures the effective implementation of all existing preferential policies, refines supporting industrial development policies, fosters a favorable market environment, and promotes comprehensive cost reduction, quality improvement, and efficiency gains.
Sixth, guide enterprises in strengthening management to enhance efficiency and drive cost reductions, quality improvements, and productivity gains in their operations. Develop specialized logistics services, promote the integration of express delivery into enterprises and across industries, and enhance efficiency in warehousing, transshipment, loading and unloading, and multimodal transport coordination, thereby reducing transit times, improving inventory turnover, and lowering corporate financial and transaction costs.
(Source: Caixin)
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