The first five-year plan for the development of a modern logistics sector through 2025 has been published, highlighting the need to promote the digital transformation of the sector, enhance the competitiveness of businesses, and improve the quality and efficiency of logistics services. According to the plan released by the General Office of the State Council on December 15, the country will prioritize the development of cold chain logistics, promote the use of green packaging materials, and further reduce energy use and emissions in the logistics sector. Other key measures include improving modern logistics systems by accelerating the digital and smart upgrading of the transportation, storage, delivery and packaging sectors and strengthening weak links in rural areas and cold chain logistics.
China now has the world’s largest logistics sector, leading all countries in terms of cargo transport volume and number of shipments. The total revenue of the sector reached CNY12 trillion in 2021, according to the National Development and Reform Commission (NDRC). Zhang Jiangbo, Deputy Director of the Department of Trade at the NDRC, said that China’s logistics sector is facing challenges, including disparities between eastern and western regions and urban and rural areas in terms of infrastructure and services offered, as well as a relatively small number of logistics businesses that compete globally.
He said the latest five-year-plan has proposed measures to boost the competitive edge of logistics services providers, including efforts to improve the quality and efficiency of services and refine the sector’s business environment. Another focus of the document is to lower the cost of logistics services in general by implementing tax and fee cuts and resolving gridlocks troubling the sector. The significance of the sector’s role in stabilizing the national job market is also emphasized in the plan, as over 50 million people are now employed in logistics-related industries, Zhang said.
The government will strengthen support for the growth of new business models in the sector and encourage job creation, he said, adding that more steps will be taken to protect the legitimate interests of workers. The policy document also highlighted the need to ramp up the development of international logistics networks, including improving the organization of China-Europe freight train services, moving forward with the development of overseas warehousing and encouraging major logistics providers to improve their global service networks. Furthermore, China will work toward achieving better alignment in standards for quarantine, inspection, certification and customs clearance with other countries in a bid to boost international logistics services, the China Daily reports.
In a separate report, the China Daily said that commercialization of autonomous trucks will see speedy growth as self-driving startups are stepping up efforts to conduct road tests and mass-produce autonomous heavy-duty commercial vehicles, fueled by rising demand for faster deliveries. Chinese autonomous driving startup Pony.ai has been making forays into the self-driving truck segment. The company announced in November it had formed a strategic alliance with two partners – Chinese logistics company Sinotrans and machinery manufacturer Sany Group – to work on promoting smart logistics, high-level autonomous driving, and mass production of high-end smart heavy trucks.
Pony.ai has already established joint ventures with Sinotrans and Sany Heavy Truck, a subsidiary of Sany Group, in a bid to develop autonomous trucks for logistics transportation. The first batch of 30 smart heavy-duty trucks produced by the JV between Pony.ai and Sany Heavy Truck rolled off the production line in November and were delivered to Cyantron, the smart logistics JV established by Pony.ai and Sinotrans. Over the next three years, Cyantron will purchase an additional 500 autonomous heavy duty trucks.
