Beijing: The Chinese government has released a new logistics development plan for 2014 to 2020 that will aim to debottleneck logistical connections, cut red tape and boost shipbuilding.
Logistical chokepoints will be tackled through better integration between railways and ports. Specifically, more facilities will be built to decongest and improve the transport of coal and grains, the statement said. The plan does not mention any investment figures.
The government will also encourage the building of oil and LNG tankers, and construction of ports that can handle imports of iron ore and other minerals.
Logistics companies will also be encouraged to merge to form larger entities.
"Infrastructure is comparatively backward and cannot satisfy the demands of the development of modern logistics," the Chinese State Council said in the plan, released Saturday.
The plan comes in response to China’s slowing economy, which has hit China’s logistics sector. Combined goods value grew just 8.6% year-on-year in the first quarter 2014, a significant reduction on the average of 20% annual growth seen in the past decade, according to data from the China Federation of Logistics and Purchasing. [06/10/14]