Cabinet approves plan to lower logistics costs

The State Council has approved a plan to further lower logistics costs to help speed up the recovery of economic activities that were disrupted by the COVID-19 pandemic.

The plan, issued by the National Development and Reform Commission and the Ministry of Transport, said reform in key areas should be deepened to improve the logistics system.

The measures proposed include promoting a system of joint law enforcement to address overloading and having law enforcement agencies across the country strictly implement the same standards when tackling the issue.

The authorities should improve urban delivery networks and facilities for the parking and unloading of delivery vehicles and make the operation of new energy delivery vehicles more convenient.

The authorities should also facilitate customs clearance and deepen the reform of railways. For example, they should further ease market access and encourage private investment in the construction and operation of freight train stations and warehouses.

The plan also called for the authorities to better meet the logistics industry's land use demands, guarantee the land use quota for constructing major logistics infrastructure and increase funding for such construction.

They should also encourage banks to strengthen financing for logistics companies.

Taxes and fees levied on the logistics industry, such as those charged by railways and sea ports, should be reduced, and the cost of travel on highways should be lowered, the plan said, adding that measures should be adopted to reduce traffic jams and time spent on highways.

The plan suggested constructing a network of logistics infrastructure and formulating an action plan for the construction of a network of national logistics hubs in the next five years.

It also suggested establishing a group of major cold chain logistics bases in the country and improving weak links in cold chain logistics facilities in cities and rural areas.

The plan encouraged acquisitions and mergers conducted by large logistics companies, and called for nurturing competitive international ocean freight companies as well as an international shipping network commensurate with the scale of China's foreign trade.

There should be a strategy to develop modern supply chains which are digitized, smart and globalized, the plan said, suggesting the government speed up the development of "smart logistics".

The government should also develop "green logistics" by promoting environmentally friendly practices such as a reduction in packaging, and encourage companies to develop and use recyclable and degradable packaging materials, the plan said.