07/23

2016

Shandong to invest 73 billion yuan in green transportation system

Recently, the Shandong Provincial Government Information Office held a press conference stating that Shandong Province will invest 73.02 billion yuan in the construction of a green transportation province. It is expected that by 2018, the energy saving of the green transportation province creation project in Shandong Province will reach 3.8889 million tons of standard coal, reducing CO2 emissions by 10.18 million tons, and basically completing the construction of a green transportation system. Shandong is a major energy-consuming province and a major energy-consuming province in transportation. The total scale and energy consumption account for one-tenth of the national total. According to Si Jiajun, deputy director of the Shandong Provincial Department of Transportation, the construction of Shandong's green transportation system will be carried out in six areas: integrated transportation, infrastructure, and transportation equipment. By the end of 2018, 10 categories and 21 projects need to be completed. In 2018, Shandong will initially build a scientific and reasonable comprehensive transportation network layout. By 2020, the "three horizontal and four vertical" comprehensive transportation channels will be basically formed. In the "three horizontal and four vertical" comprehensive transportation channels, the "three horizontal" are Delong Yanwei, Jiqing, and Heyanri channels, and the "four vertical" are Qingyanweiri, Binlin, Jinghu, and Jingjiu channels. In addition, Shandong will fully complete the "four horizontal and four vertical" freight railway network and the "five vertical, four horizontal, one ring, and eight connecting" highway network, and the construction of the high-speed passenger railway network will also be fully launched. The comprehensive transportation hub functions of Jinan and Qingdao will be further improved. The province will build a number of passenger and freight hubs. The functions of major ports such as Qingdao Port, Rizhao Port, and Yantai Port will be significantly improved. Regional ports such as Weihai and Penglai will take shape, and various modes of transportation will be effectively connected and coordinated. Air-ground intermodal transportation, road-rail intermodal transportation, road-water intermodal transportation, and rail-water intermodal transportation will be widely used, logistics efficiency will be significantly improved, and costs will continue to decline. Transportation, as a resource-intensive and energy-consuming industry, is a key area for energy conservation and emission reduction and responding to climate change. Zhao Fangde, director of the Science and Technology Department of the Shandong Provincial Department of Transportation, introduced that Shandong is currently vigorously promoting the informatization of transportation and the construction of intelligent transportation, building a provincial transportation logistics public information platform, establishing the Shandong Provincial Road Trailer Transportation Alliance and the Bohai Rim Trailer Transportation Alliance, continuously improving the construction of the highway non-stop toll collection system, and continuously promoting the application of advanced technologies such as port "oil-to-electricity" conversion, ship shore power utilization, and green lighting. It is reported that Shandong has been increasing the promotion of new energy and clean energy transportation tools. Since the 12th Five-Year Plan, Shandong has focused on natural gas vehicles and vigorously promoted the application of clean energy and new energy transportation tools in the transportation sector. As of May, the number of new energy and clean energy operating vehicles in Shandong Province has reached 116,000, accounting for about 10% of the total, of which 98,373 are natural gas vehicles, and 17,837 are LNG vehicles among natural gas vehicles. It is understood that the Shandong Provincial Finance has allocated special funds for energy conservation and emission reduction in transportation. Through the central and provincial governments' "reward-for-substitution" approach, the enthusiasm of transportation enterprises to carry out energy conservation and emission reduction has been greatly mobilized, driving a large amount of social capital investment and providing effective financial guarantees for building a green transportation system. (Information source: China Water Transport Network)

07/23

2016

The development of multimodal transport relies on unit segmentation

The concept of intermodal transport has been proposed in China for many years, aiming for seamless connection among various freight modes such as road, rail, water, and air. However, its progress has been slow. The core of intermodal transport lies in container turnover. Although the proportion of containerized goods on railways exceeds 10% of the total transport volume, only about 2-3% are actually loaded into containers for transport. The proportion of container turnover in the total turnover of railway freight is also no more than 5%. The volume of containerized sea-rail intermodal transport accounts for only about 1.5% of the national port throughput. Dalian Port, ranked first, accounts for 3.75% of its total container throughput, followed by Qingdao Port with only 1.77%. The government, China Railway Corporation (CRC), and ports are not unaware of the problems, nor do they fail to recognize the efficiency improvements and cost reductions that intermodal transport can bring. The "Several Opinions on Strengthening the Construction of Logistics Shortcomings, Promoting Effective Investment and Resident Consumption" issued by the National Development and Reform Commission (NDRC) on March 3 this year points out the need to strengthen the construction of intermodal transport facilities and improve cargo transfer efficiency. The "Implementation Plan on Promoting the Improvement of Transportation Quality and Efficiency and Enhancing Supply and Service Capacity", jointly issued by the NDRC and the Ministry of Transport on June 6 this year, further emphasizes the vigorous promotion of through transport to achieve seamless connection in transport organization, leverage the combined advantages of different transport modes, improve transport efficiency, and reduce social logistics costs. CRC Transportation Bureau Director Cheng Xiandong also stressed in a signed article published at the beginning of the year the need to make new breakthroughs in the development of containerized transport, aiming to reach 20% of the total freight volume within 3 to 5 years. Policies seem to be in place, and determination is strong, but implementation is not easy, as the short-term return on investment for individual investors is not obvious, and they may even lose money. Railways, ports, and even aviation have a strong desire for intermodal transport because they lack "door-to-door" road transport connections. However, road transport, another major player in intermodal transport, is not proactive. According to statistics, in 2015, the total freight volume completed by the whole society was 45.02 billion tons, a year-on-year increase of 4.4%, while the freight volume completed by road increased by 6.4%, exceeding the 4.4% increase in the total freight volume of the whole society, and also exceeding the 5.2% increase in aviation, the 3.7% increase in water transport, and the -13.7% increase in railway. Even without the support of intermodal transport, road logistics does not lack competitiveness and profitability. To promote the implementation of the intermodal transport system, the railway, whose efficiency is declining, should be the industry that takes the lead. Low node efficiency is one of the key problems currently existing in intermodal transport. Even if CRC achieves its goal of 20% of total freight volume being containerized freight, it is difficult to solve the "door-to-door" logistics full chain service capacity. Because transferring containers from railway freight to road trucks for quick loading and unloading is relatively easy, but transferring them to urban distribution "door-to-door" special vehicles involves complex operations and low efficiency in sorting, unpacking, and packing. Transferring containers from trucks and ships to railway cars involves the problem of unified standards for single-box weight balance, which seriously affects railway operation safety. Of course, there is also the problem of difficulty in recycling self-owned containers, making it difficult for them to circulate in the network. To solve this problem, it is necessary to start from the advantages and disadvantages of railway freight, making the most of its strengths and avoiding its weaknesses. The author has summarized the advantages of railway freight as its operating network, vast assets and historical reputation, and all-weather operational safety. The weaknesses include relatively backward hardware and software, lack of information connection with society, random and unguaranteed transportation time, and serious lack of enterprise service awareness at the grassroots level. The advantage of the railway's vast operating network makes it possible to promote the standardization of intermodal transport rapid transfer facilities, equipment, and technology, as well as the standardization and green recyclable turnover. During the "13th Five-Year Plan" period, railways will invest 2.8 trillion yuan to expand the railway infrastructure network, build a comprehensive transportation system organically connected with roads, waterways, and aviation, and expand the cargo distribution network, including container centers and terminal distribution. It is conceivable that railways can build a self-contained logistics industry chain ecosystem dominated by railway freight logistics and attracting investment from all parties, making the intermodal transport equipment standards planned and designed by railways first become a landmark achievement and competitive weapon for railway freight reform. Railways can rely on the joint construction of public-rail intermodal logistics parks with local governments and enterprises covering the entire network, focusing on the most profitable and high-yield express delivery, cold chain, and general cargo markets as major competitive niches. They can develop and manufacture railway-specific combined containers suitable for turnover and matching ground distribution vehicles, establish an automated and efficient sorting system, and achieve professional logistics distribution services led by railways. Railway freight revenue in 2015 was only 231.21 billion yuan, and it decreased at a rate of -10%, while the express delivery market revenue in 2015 reached 276.96 billion yuan, of which 70% was long-distance express delivery, and it maintained a high growth rate of 40%. However, railway freight must establish a breakthrough advantage with core technologies to quickly enter the express delivery market and gain a competitive advantage. The "door-to-door" terminal transport vehicles in the express delivery industry are currently mainly three-wheeled vehicles, or even motorcycles and electric bicycles. The "ban on motorcycles and restrictions on electric vehicles" policy, which is gradually being implemented starting from Shenzhen, may squeeze out new four-wheeled new energy delivery vehicles. The State Post Bureau is also standardizing the corresponding terminal delivery vehicle standards. From node city logistics parks to urban collection points, due to restrictions on urban traffic policies, small delivery trucks are mainly used, which, like aviation containers and road containers, require disassembly and sorting. In addition, express packaging waste is alarming. In 2015, 8.26 billion plastic bags, 9.9 billion boxes, and 16.95 billion meters of tape were consumed, with the tape length enough to circle the earth's equator 425 times. The express delivery industry urgently needs green packaging and recyclable packaging, but it has been hampered by the high cost of recyclable packaging due to the inability to form a circulation network. The railway's vast network coverage and self-circulation system have the advantage of green circulation. The logistics industry chain ecosystem led by railways can enable railways to lead the development of special combined containers within containers, seamlessly connecting public-rail intermodal logistics parks and urban collection points, collection points and end customers, and developing combinable, detachable, and splicable and circulating sub-warehousing and distribution units, as well as corresponding standard warehousing and distribution trucks, terminal distribution standard vehicles, and automated sorting systems and comprehensive information service platforms suitable for intermodal transport special combined containers. Special combined containers are unit divisions of containers, which can also be called smaller containers. Containers are one of the ten greatest inventions of the 20th century. They are a universal standard connecting road, rail, water, and air transport invented by truck drivers. Their unit is called TEU, which stands for 20-foot unit, referring to the external dimensions of 20x8x8 feet 6 inches. Special combined containers use smaller sizes suitable for the smallest terminal delivery vehicles and have the ability to quickly connect and detach from each other. However, if these containers cannot be circulated and reused, the cost will increase dramatically. Once a recyclable and reusable container system is formed, it will not only improve the efficiency of transshipment, ensure the safety of the contents, and reduce logistics time, but more importantly, it can greatly reduce logistics packaging costs. This will make railway freight's competitive advantage in the express delivery industry, and even the cold chain and general cargo markets, stand out, and it will also drive the vigorous development of intermodal transport throughout society. (Information source: Economic Information Daily)

07/23

2016

Li Keqiang gives a thumbs-up to the development of express delivery and deploys the promotion of Internet + logistics

On July 20, Premier Li Keqiang presided over an executive meeting of the State Council. The meeting adopted the 13th Five-Year Plan for National Science and Technology Innovation, aiming to lead and support upgrading development through the construction of an innovation-oriented country; it also deployed the promotion of "Internet + Logistics" to reduce enterprise costs and improve people's lives; and adopted the "Measures for Organizing the Constitutional Oath-Taking of State Functionaries Appointed by the State Council and Its Various Departments". The meeting pointed out that innovation is the primary driving force for development. To further implement the spirit of the National Conference on Science and Technology Innovation, and based on the Outline of the 13th Five-Year Plan, systematically planning and making forward-looking arrangements for scientific and technological innovation over the next five years is a major measure to implement the innovation-driven development strategy and build an innovation-oriented country. This is of great significance for enhancing China's comprehensive national strength in scientific and technological innovation, developing the new economy, promoting the transition of the economy to the middle and high end, and achieving the goal of building a moderately prosperous society in all respects. The "13th Five-Year Plan for National Science and Technology Innovation" adopted by the meeting sets the following main tasks: First, enhance original innovation capabilities, strengthen basic and frontier research, optimize resource allocation, target strategic areas that will lead future development, and plan and build a number of major scientific and technological facilities and national scientific research and technological innovation bases. Expand the scale and improve the quality of innovative talents. Strengthen regional and international innovation cooperation. Significantly improve China's ranking in the world in terms of comprehensive innovation capabilities. Second, build a first-mover advantage, make good use of comparative advantages, focus on national strategies and the needs of improving people's livelihood, launch a number of new major scientific and technological projects in key areas such as quantum communication and precision medicine, strengthen major industrial technology development in areas such as seed industry, clean and efficient use of coal, fifth-generation mobile communication, and intelligent robots, promote disruptive technological innovation, cultivate new impetus, drive the transformation and upgrading of traditional industries, achieve a 60% contribution rate of scientific and technological progress, and improve the quality of life for the people. Third, relying on the platform of mass entrepreneurship and innovation, strengthen the leading role of enterprises in scientific and technological innovation, and build a highly efficient and collaborative innovation ecosystem. Improve the scientific and technological innovation services and maker spaces and other entrepreneurial incubation systems, build a unified and open technology trading market, and guide more resources to converge on innovation. Fourth, accelerate the pace of reform of the scientific and technological system and mechanism, and fully mobilize the enthusiasm of scientific and technological personnel. Quickly implement policies to improve the management and use of scientific research funds and the allocation of scientific and technological achievements, remove institutional obstacles that hinder innovation and the transformation of achievements, improve the efficiency of the use of scientific research funds, and strengthen the protection and application of intellectual property rights. Strengthen science popularization and innovation culture construction, and promote the formation of a social atmosphere that values innovation. The meeting believes that the logistics industry is an important part of the modern service industry and also a prominent shortcoming. Developing efficient logistics with the Internet is an important measure to moderately expand total demand and promote supply-side structural reforms. It is conducive to promoting employment and improving total factor productivity. First, build an interconnected and shared logistics information system, establish standards and specifications, accelerate the construction of a public information platform for integrated transportation and logistics transactions, and improve the level of intelligent warehousing and distribution. Encourage the development of cold chain logistics. Second, promote the combination of logistics and "mass entrepreneurship and innovation", develop various forms of efficient and convenient new logistics models, and promote the interaction and integration of logistics with manufacturing, commerce, finance, etc. Promote Internet + vehicle-cargo matching and transportation capacity optimization, and achieve precise docking of vehicles, network points, and users. Explore the implementation of "one-stop" combined transportation services, and promote the online opening and real-time trading of warehousing resources. Third, increase policy support such as land use, combine value-added tax reform with innovative financial and tax support, simplify the establishment and business approval of logistics enterprises, and encourage financial institutions to focus on supporting the development of small and micro logistics enterprises. Innovate regulatory methods, regulate market order, and strengthen safety management. Enable modern logistics to better serve development and benefit people's livelihood. In order to encourage and educate government officials to be loyal to the Constitution, abide by the Constitution, uphold the Constitution, and perform their duties in accordance with the law, and to promote the construction of a government under the rule of law, in accordance with the decision of the Standing Committee of the National People's Congress on the implementation of the constitutional oath-taking system, the meeting adopted the "Measures for Organizing the Constitutional Oath-Taking of State Functionaries Appointed by the State Council and Its Various Departments". The Measures clearly stipulate the scope of personnel participating in the oath-taking, the form and procedures of the oath-taking. "Promoting Internet + logistics is both a way to develop the new economy and a way to upgrade the traditional economy." Premier Li Keqiang emphasized at the State Council executive meeting on July 20. Li Keqiang said: "We must promote the deep integration of information technologies such as the Internet, big data, and cloud computing with logistics, and promote the transformation and upgrading of the logistics industry and even the Chinese economy. This is the 'supply-side reform' of the logistics industry. In recent years, we have made a lot of efforts to reduce logistics costs from 20% of GDP to 16%, making considerable progress. However, compared with the global average level, it is still relatively high, and there is a significant gap compared with some developed countries. We must recognize that the logistics industry is a current development 'shortcoming', and it contains enormous potential." "The development of Internet + logistics must be combined with mass entrepreneurship and innovation. This can not only give birth to new technologies, new models, and new formats, enhancing the competitiveness of the logistics industry, but also greatly reduce enterprise costs and improve the overall efficiency of the economy. Indeed, the rapid development of the express delivery industry in recent years has exceeded our imagination! Although the contribution of the express delivery industry as a new format to GDP is limited, it has accommodated a large number of jobs and greatly reduced the logistics costs of the entire society." He emphasized that in the process of promoting Internet + logistics, many new formats may be born, and some new situations and problems may also arise. Government departments should not "stop" or "control" them from the outset. For logistics enterprises that fully absorb employment, reduce enterprise costs, and facilitate people's lives, we should increase policy support such as land use, combine value-added tax reform with innovative financial and tax support, simplify the establishment and business approval of logistics enterprises, and encourage financial institutions to focus on supporting the development of small and micro logistics enterprises. While optimizing services, we must also strengthen mid- and post-event supervision. "I hope that all relevant departments will work together to increase the efforts to promote Internet + logistics." Li Keqiang finally requested, "This is both developing the new economy and transforming and upgrading the traditional economy such as logistics and manufacturing, and promoting the overall transformation and upgrading of the Chinese economy." Previously, Li Keqiang had presided over three State Council executive meetings to discuss and adopt the "Medium- and Long-Term Plan for the Development of the Logistics Industry", deploy the development of modern circulation industry and the construction of a rule-of-law business environment, and promote the "Internet + Circulation" action. (Information source: China Government Website)

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