The logistics network constitutes an important part of the modern circulation system. A robust logistics network is indispensable for smoothing economic circulation, expanding high-level opening-up, and stabilizing industrial and supply chains.

The Central Economic Work Conference held at the end of last year re-emphasized the goal of "accelerating the formation of a logistics network featuring domestic-international connectivity, security and high efficiency". What new progress has China made in developing its logistics network in recent years, and what key tasks remain ahead? Journalists interviewed relevant government departments, enterprises and experts.

More Developed Transport Framework and Steady Improvement in Transport Services

Strong Overall Logistics Support

Construction of the Sichuan-Tibet Railway and its supporting highways, the Yangtze-to-Huaihe Water Diversion Shipping Project and other infrastructure proceeded in an orderly manner. The Beijing-Harbin High-Speed Railway and the Beijing-Xinjiang Expressway were fully opened to traffic. Chengdu Tianfu International Airport and Qingdao Jiaodong International Airport were put into operation, and the China-Laos Railway was completed and opened to traffic. In 2021, China steadily pushed forward the construction of transport infrastructure.

Facility development serves as the foundation for building a logistics network, while transport organization holds the key. As the transport network improves at an accelerated pace, the standard of integrated transport services keeps rising.

— Overcome difficulties to maintain stable and unimpeded international logistics.

Approximately 95% of China’s foreign trade cargo is transported via international sea freight. During the COVID-19 pandemic prevention and control period, COSCO Shipping Group, the world’s largest shipping enterprise by comprehensive capacity, with support from competent authorities, strove to tackle challenges including port congestion overseas and the severe container shortage to sustain stable operations. In 2021, COSCO Shipping Group transported 1.36 billion tonnes of cargo globally, with a freight turnover of 3.87 trillion tonne-nautical miles, rising by 1.2% and 4.2% year on year respectively. Besides, 15,000 China-Europe Railway Express trains ran in 2021, up 22% year on year, carrying 1.46 million TEUs, an increase of 29% year on year, which also played a positive role in keeping supply routes unblocked.

Overall, an open, shared, globally covered, secure, reliable and strongly supported international logistics and supply chain system is taking shape at a faster pace. At present, China’s international water transport routes cover more than 100 countries, giving it the highest connectivity in global maritime shipping. International air cargo routes reach 80 countries worldwide. The China-Europe Railway Express connects over 170 cities across 23 European countries, and international road transport cooperation has expanded to 19 countries.

— Boost efficiency to facilitate the smooth circulation of the national economy.

“During last year’s Double 11 shopping festival, thanks to China’s most advanced intelligent sorting line for e-commerce logistics, 80% of JD’s orders in Urumqi achieved same-day or next-day delivery. The delivery lead time for parcels to other regions in Xinjiang was shortened by more than two days,” a relevant person in charge from JD Logistics stated. Built upon its powerful logistics network, JD has established a sound supply chain system. Currently, same-day or next-day delivery is available for 93% of counties and districts and 84% of townships nationwide.

Adjusting the transport structure, developing multimodal transport, raising the efficiency of urban distribution and improving rural logistics networks. In recent years, China has systematically promoted quality and efficiency upgrades in logistics. Last year, the multimodal transport demonstration projects completed 6.2 million TEUs of container multimodal transport and launched 450 combined transport routes. Efforts were made to develop sound rural roads, achieve direct postal delivery to every village, and basically cover all townships with courier outlets.

— Shore up weak links for rapid development of air cargo and other sectors.

In 2021, the total cargo and mail volume of China’s civil aviation industry reached 7.32 million tonnes, up 8.2% year on year, recovering to 97.2% of the 2019 level. Amid COVID-19 prevention and control, China Southern Airlines vigorously expanded air logistics. Relying on China’s largest fleet of Boeing 777 freighters, it operated 19 international cargo routes and has launched roughly 13,000 passenger-to-cargo converted flights so far.

“The pandemic has highlighted the greater importance of air cargo. Previously, over 95% of China’s air cargo was carried in the belly holds of passenger aircraft. The proportion of goods shipped by dedicated freighters has kept rising over the past two years,” observed Li Xiaojin, Director of the Institute of Air Transport Economics, Civil Aviation University of China. China’s air logistics capacity is steadily improving, airspace and flight slot allocation is better guaranteed, and connections with other transport modes are becoming smoother.

In 2021, China’s total freight volume and port cargo throughput grew by 12.4% and 6.8% respectively over the previous year, reflecting positive outcomes of logistics network development. According to Deng Yanjie, Director of the Logistics Engineering and Technology Research Center at the Water Transport Science Research Institute of the Ministry of Transport, China’s integrated transport network and supply chain system have improved rapidly in recent years and can basically meet diverse logistics demands for bulk commodities, agricultural products, manufactured goods and daily consumer goods.