Summary of Key Points
On August 28th, the National Development and Reform Commission (NDRC) and the Ministry of Transport jointly released the "Logistics Network Construction Implementation Plan," officially incorporating the logistics network into the national major infrastructure initiatives known as the "Six Networks" (including water networks, new power grids, and computing power networks). This marks a significant upgrade from the logistics network being a traditional supporting facility to a "core strategic foundation" that supports the national economic cycle. The plan aims to reduce the total social logistics costs as a percentage of GDP to 13.1% by 2030 (a decrease of 0.8 percentage points from the end of the 14th Five-Year Plan period). This goal will be achieved through the deployment of 17 tasks under three key areas of coordination: connecting major transportation arteries with local micro-circuits, improving both physical infrastructure and digital connectivity, and enhancing both domestic and international logistics services.
The Logistics Network's Upgrade: From a Supporting Role to a Central Element of the Economic Cycle
In the past, logistics was merely a supplementary transportation service. However, it has now been elevated to the status of a national strategic infrastructure, which is like giving the logistics industry a significant promotion. Liu Jingzhen, the chairman of China Logistics Group, stated that this means the logistics network no longer merely follows the development of other industries but rather drives their growth. It acts like an invisible network that connects goods, resources, and industries, ensuring the smooth flow of the economic cycle. For example, it enables the rapid delivery of raw materials to factories, the timely sale of fresh products in rural areas, and the unimpeded passage of international goods through customs.
How to Reduce Logistics Costs by 0.8 Percentage Points by 2030?
The goal is clear: to reduce the proportion of logistics costs in GDP from the current approximately 13.9% to 13.1% for every 100 yuan of GDP generated. The plan outlines seven strategies to achieve this:
1. Building Hub Connectors: Improving logistics hubs to facilitate faster transfers between different modes of transport (railway, road, air).
2. Addressing Urban-Rural Disparities: Establishing courier stations in rural areas and improving distribution systems in county towns to solve the problems of delivering goods to remote and urban areas.
3. Digitalization and Greening: Using intelligent technologies (such as automated warehouses and electric trucks) to reduce labor and energy costs.
4. Information Sharing: Breaking down information barriers between logistics companies to prevent empty trips and cargo backlogs.
These measures will ultimately lead to lower shipping costs for businesses and lower prices for consumers.
Three Areas of Coordination to Solve Logistics Bottlenecks
The plan addresses current logistics challenges through three key areas of coordination:
1. Coordinating Major Transportation Arteries with Local Micro-Circuits
- Major Arteries: Improving cross-regional transportation networks (e.g., expanding highway corridors along rivers and upgrading railway freight systems) to reduce congestion.
- Micro-Circuits: Establishing community courier stations and county-level distribution networks to make online shopping more convenient and accelerate the delivery of fresh products to rural areas. For instance, railway container transportation increased by 9.2% in the first seven months of this year, but some routes are still congested, so the plan focuses on expanding and upgrading these critical areas.
2. Balancing Physical Infrastructure with Digital Connectivity
- Physical Infrastructure: Upgrading 1,000 freight transportation nodes (e.g., connecting ports with railways and industrial parks with roads) to improve the efficiency of cargo transfer.
- Digital Connectivity: Standardizing logistics processes (e.g., using a single document for the entire delivery process) and integrating information systems to overcome barriers between different modes of transport.
3. Enhancing Domestic and International Logistics
- Domestic Logistics: Improving the domestic logistics network to facilitate the efficient flow of goods between urban and rural areas.
- International Logistics: Supporting international logistics companies and optimizing overseas insurance and financing services. Although there have been 130,000 China-Europe freight trains, more companies are needed to expand international logistics services.
Hidden Benefits of the Logistics Network Construction
In addition to cost reduction, the logistics network brings several other benefits:
1. Economic Stability: It serves as a foundation for economic resilience, ensuring that goods can still be transported smoothly even in the face of external challenges (such as pandemics or trade disputes).
2. Market Expansion: It enables rural areas to access more urban goods and urban areas to enjoy fresh rural products, while also facilitating international trade.
3. Industrial Upgrading: Improved logistics efficiency allows industries (such as manufacturing and e-commerce) to respond more quickly to market demands, enabling practices like just-in-time production and reducing waste.
In summary, a well-developed logistics network not only leads to faster deliveries and lower shipping costs but also contributes to a more stable and robust economy.