Transport Infrastructure Development in China - … Infrastructure Development in China Fung...

Transport Infrastructure Development in China

Fung Business Intelligence Centre

October 2013

In this issue:

Overview

Four Transportation Modes

Government Initiatives

2

Overview

3

Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Sichuan

Chongqing

Yunnan

Hainan

Guizhou

Guangdong Guangxi

Inner Mongolia

Shaanxi

Shanxi Shandong

Henan

Hubei

Hunan Jiangxi

Jiangsu

Fujian

Zhejiang

Anhui Shanghai

Hebei

Beijing Tianjin

Liaoning

Heilongjiang

Jilin

Million Annual growth (%)

Total 38,040 7.9%

Highway 35,570 8.2

Railway 1,893 1.7

Water 258 4.9

Air 319 8.9

Passenger traffic in China, 2012

> 5,000 million

2,000 million - 5,000 million 1,000 million - 2,000 million

500 million - 1,000 million < 500 million

Source: China Statistical Yearbook (Abstract) 2013

Passenger traffic at a glance


Total 38,040 7.9%

Guangdong 5,743 12.5%

Sichuan 2,776 7.2%

Jiangsu 2,677 8.4%

Shandong 2,656 5.8%

Zhejiang 2,331 25.6%

The top five busiest provinces

in terms of passenger traffic, 2012

Passenger traffic by province, 2012

In 2012, total passenger traffic in China was 38

billion, up by 7.9% year-on-year (yoy). It is

observed that people in coastal area generally

have higher levels of mobility as compared to

their counterparts in inland area.

Among the top five busiest provinces in terms

of passenger traffic, Zhejiang and Guangdong

grew with the fastest rates. It is believed that

the presence of high-speed railway and inter-

city express were the major drivers. 4

Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Sichuan

Chongqing

Yunnan

Hainan

Guizhou

Guangdong Guangxi

Inner Mongolia

Shaanxi

Shanxi Shandong

Henan

Hubei

Hunan Jiangxi

Jiangsu

Fujian

Zhejiang

Anhui Shanghai

Hebei

Beijing Tianjin

Liaoning

Heilongjiang

Jilin

> 3,000 million

2,000 million - 3,000 million 1,000 million - 2,000 million

500 million - 1,000 million < 500 million


Freight traffic at a glance

In 2012, total freight traffic in China was 41

billion tonnes, up by 10.9% yoy. Pearl River

Delta, Yangtze River Delta and Bohai Rim

recorded the strongest freight traffic volume.

With industrial relocation from coastal areas

to inland areas, freight traffic in inland China

is now catching up, which was evident by the

strong growth rates of freight traffic in Anhui

and Henan.


Total 40,994 10.9%

Highway 31,885 13.1

Railway 3,904 (0.7)

Water 4,587 7.7

Air 5.5 (2.2)

Pipeline 612.4 7.3

Freight traffic in China, 2012


Total 40,994 10.9%

Shandong 3,336 4.8%

Anhui 3,124 16.4%

Henan 2,721 12.9%

Guangdong 2,561 14.1%

Jiangsu 2,200 8.6%

The top 5 busiest provinces

in terms of freight traffic, 2012

Freight traffic by province, 2012 (tonnes)

5

Accelerating development in infrastructure

Road (2012)

• Fixed assets investment:

1,713 billion yuan

(+6.6% yoy)

• Length of highway in

operation: 4.2 million km

(+3.2% yoy)

• Length of expressway in

operation: 96,200 km

(+13.3% yoy)

Water (2012)


197 billion yuan

(+2.1% yoy)

• Number of coastal and

inland berths:

31,862 (-0.3% yoy)

• Length of navigable

inland waterway:

125,000 km

Rail (2012)


606 billion yuan

(+2.4% yoy)

• Length of railway

in operation:

98,000km (+5.4% yoy)

Air (2012)


109 billion yuan

(+30.2% yoy)

• Number of airports:

183 (+1.7% yoy)

Source: China Statistical Yearbook (Abstract) 2013 6

Road Transport

7

Highway passenger and freight traffic

Total highway passenger traffic in China, 2008-2012

30.8

3.6 9.8

7.6 8.2

0

5

10

15

20

25

30

35

0

5

10

15

20

25

30

35

40

2008 2009 2010 2011 2012

%

billi

on p

erso

n

Total passenger traffic yoy growth (%)

Total highway passenger-kilometers in China,

2008-2012

8.4 8.3

11.2 11.6

10.2

0

2

4

6

8

10

12

14

0

500

1,000

1,500

2,000

2008 2009 2010 2011 2012

%

billi

on p

asse

nger

-km

Total passenger-kilometers yoy growth (%)

Total highway freight traffic in China, 2008-2012

Total highway freight-tonne-kilometers in China,

2008-2012

17.1

10.9

14.9 15.2

13.1

0

2

4

6

8

10

12

14

16

18

0

5

10

15

20

25

30

35

2008 2009 2010 2011 2012

%

billi

on to

nne

Total freight traffic yoy growth (%)

189.5

13.1 16.7

18.4

15.9

0

20

40

60

80

100

120

140

160

180

200

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008 2009 2010 2011 2012

%

billi

on to

nne-

km

Total freight tonne-kilometers yoy growth (%)

China’s highway carried a

total of 36 billion passengers

in 2012, up by 8.2% yoy. The

total highway passenger-km

rose by 10.2% yoy to 1,847

billion passenger-km.

The volume of freight

dispatched by highway in

China amounted to 32 billion

tonnes in 2012, posting a yoy

growth of 13.1%. The total

highway freight-tonne-km

climbed by 15.9% yoy to

reach 5,954 billion tonne-km

in 2012.

Source: China Statistical Yearbook (Abstract) 2013 8

Guangdong registered the highest highway passenger

traffic in China

Passenger traffic by province, 2012 (billion)

Passenger traffic by region, 2012 (billion)

Among all the provinces and municipalities in China,

Guangdong registered the highest passenger traffic, with

over 5.5 billion passengers in 2012, followed by Sichuan

(2.7 billion) and Jiangsu (2.6 billion).

Western China registered the highest highway passenger

traffic among the five regions in China, with 7.8 billion

passengers in 2012, followed by northern China and

southern China at 7.6 billion passengers each.


Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Sichuan

Chongqing

Yunnan

Hainan

Guizhou

Guangdong Guangxi

Inner Mongolia

Shaanxi

Shanxi

Shandong

Henan

Hubei

Hunan Jiangxi

Jiangsu

Fujian

Zhejiang

Anhui Shanghai

Hebei

Beijing Tianjin Liaoning

Heilongjiang

Jilin

> 5 billion

2 billion – 3 billion 1 billion – 2 billion

0.5 billion – 1 billion < 0.5 billion

0

1

2

3

4

5

6

7

8

9

Eastern Northern Southern Central Western

billi

on

Eastern China: Anhui, Jiangsu, Shanghai, Zhejiang

Northern China: Beijing, Hebei, Heilongjiang, Inner Mongolia, Jilin, Liaoning, Shandong, Shanxi, Tianjin

Southern China: Fujian, Guangdong, Guangxi, Hainan

Central China: Henan, Hubei, Hunan, Jiangxi

Western China: Chongqing, Gansu, Guizhou, Ningxia, Qinghai, Shaanxi, Sichuan, Tibet, Xinjiang, Yunnan

9

Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Sichuan

Chongqing

Yunnan

Hainan

Guizhou

Guangdong Guangxi

Shaanxi

Shanxi

Shandong

Henan

Hubei

Hunan Jiangxi

Jiangsu

Fujian

Zhejiang

Anhui Shanghai

Hebei


Heilongjiang

Jilin

> 2 billion

1.5 billion – 2 billion 1 billion – 1.5 billion

0.5 billion – 1 billion < 0.5 billion

Shandong ranked first in highway freight transport in China

Freight traffic by province, 2012 (billion tonnes)

Freight traffic by region, 2012 (billion tonnes)

In terms of highway freight traffic, Shandong was the

busiest province with 3 billion tonnes of goods being

transported in 2012, followed by Anhui (2.6 billion) and

Henan (2.5 billion).

Among the five regions in China, northern China ranked

first in terms of volume of freight dispatched by road at

10.1 billion tonnes in 2012, followed by central China

(6.3 billion) and western China (5.8 billion).


0

2

4

6

8

10

12


billi

on to

nnes






10

Rail Transport

11

Railway passenger and freight traffic

Total railway passenger traffic in China, 2008-2012

Total railway passenger-kilometers in China,

2008-2012

Total railway freight traffic in China, 2008-2012

Total railway freight-tonne-kilometers in China,

2008-2012

China’s railway carried a total

of 1,893 million passengers in

2012, up by 1.7% yoy. The

total railway passenger-km

rose by 2.1% yoy to 981

billion passenger-km.


dispatched by railway in China

amounted to 3.9 billion tonnes

in 2012, dropped by 0.7% yoy.

The total highway freight-

tonne-km reduced by 0.9%

yoy to 2,919 billion tonne-km

in 2012.


7.8 4.3

9.9

11.1 1.7

0

2

4

6

8

10

12

0

500

1,000

1,500

2,000

2008 2009 2010 2011 2012

%

mill

ion

pers

on


7.8 1.3

11.2

9.7 2.1

0

2

4

6

8

10

12

0

200

400

600

800

1,000

1,200

2008 2009 2010 2011 2012

%

billi

on p

asse

nger

-km


5.1 0.9

9.3 8.0 -0.7

(2)

0

2

4

6

8

10

0

1

2

3

4

5

2008 2009 2010 2011 2012

%

billi

on to

nne


5.5 0.5

9.5 6.6 -0.9

(2)

0

2

4

6

8

10

12

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2008 2009 2010 2011 2012

%

billi

on to

nne-

km


12

Again, Guangdong registered the highest railway

passenger traffic in China

Passenger traffic by province, 2012 (million)

Passenger traffic by region, 2012 (million)


Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Sichuan

Chongqing

Yunnan

Hainan

Guizhou

Guangdong Guangxi

Inner Mongolia

Shaanxi

Shanxi

Shandong

Henan

Hubei

Hunan Jiangxi

Jiangsu

Fujian

Zhejiang

Anhui Shanghai

Hebei


Heilongjiang

Jilin

> 150 million

100 million – 150 million 70 million – 100 million

50 million – 70 million < 50 million

Among all the provinces and municipalities in China,

Guangdong registered the highest passenger traffic, with

over 150 million passengers in 2012, followed by

Liaoning (120 million) and Jiangsu (118 million).

Northern China registered the highest highway

passenger traffic among the five regions, with 689 million

passengers in 2012, followed by eastern China (340

million) and central China (324 million).

0

100

200

300

400

500

600

700

800


mill

ion






13

Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Sichuan

Chongqing

Yunnan

Hainan

Guizhou

Guangdong Guangxi

Inner Mongolia

Shaanxi

Shanxi

Shandong

Henan

Hubei

Hunan Jiangxi

Jiangsu

Fujian

Zhejiang

Anhui Shanghai

Hebei


Heilongjiang

Jilin

> 500 million


50 million – 70 million <50 million

Shanxi ranked first in railway freight traffic in China

Freight traffic by province, 2012 (million tonnes)

Freight traffic by region, 2012 (million tonnes)


Shanxi province ranked first in China in terms of railway

freight traffic at 715 million tonnes in 2012, followed by

Inner Mongolia (647 million) and Shaanxi (319 million).

Most of the railway freight was dispatched in northern

China at 2,332 million tonnes in 2012, followed by

western China (802 million) and central China (298

million).

0

500

1000

1500

2000

2500


mill

ion

tonn

es






14

Current development of high-speed railway network

in China

* The exhibit covers eight high-speed railway routes in China, of which, four routes connecting north and south and the other four linking east and west .

Source: Internet sources, compiled by Fung Business Intelligence Centre 15

(as of September 2013)*

Water Transport

16

Waterway passenger and freight traffic

Total waterway passenger traffic in China,

2008-2012

Total waterway passenger-kilometers in China,

2008-2012

Total waterway freight traffic in China, 2008-2012

Total waterway freight-tonne-kilometers in China,

2008-2012

China’s waterway carried a

total of 258 million passengers

in 2012, up by 4.9% yoy. The

total waterway passenger-km

rose by 2.7% yoy to 7.7 billion

passenger-km.


dispatched by waterway in

China amounted to 4.6 billion

tonnes in 2012, posting a yoy

growth of 7.7%. The total

waterway freight-tonne-km

climbed by 8.3% yoy to reach

8,171 billion tonne-km in 2012.


-11.0

9.7

0.3

9.7 4.9

(15)

(10)

(5)

0

5

10

15

0

50

100

150

200

250

300

2008 2009 2010 2011 2012

%

mill

ion

pers

on


-24.4

16.9 4.3

4.2 2.7

(30)

(20)

(10)

0

10

20

0

1

2

3

4

5

6

7

8

9

2008 2009 2010 2011 2012

%

billi

on p

asse

nger

-km


4.7 8.3

18.8 12.4

7.7

0

5

10

15

20

0

1

2

3

4

5

2008 2009 2010 2011 2012

%

billi

on to

nne


-21.8

14.5 18.9

10.2 8.3

(25)

(20)

(15)

(10)

(5)

0

5

10

15

20

25

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2008 2009 2010 2011 2012

%

billi

on to

nne-

km


17

Zhejiang’s waterway passenger traffic

ranked first in China

Passenger traffic by province, 2012 (million)


Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Sichuan

Chongqing

Yunnan

Hainan

Guizhou

Guangdong Guangxi

Inner Mongolia

Shaanxi

Shanxi

Shandong

Henan

Hubei

Hunan Jiangxi

Jiangsu

Fujian

Zhejiang

Anhui Shanghai

Hebei


Heilongjiang

Jilin

> 30 million


2 million – 5 million < 2 million

Not applicable

Among all the provinces, Zhejiang’s waterway passenger

traffic ranked first at 35 million persons in 2012, followed

by Sichuan (33 million) and Guangdong (27 million).

Waterway passenger traffic in western region had

outstanding performance, as compared with the other

four regions in China. In 2012, waterway passenger

traffic in western China was 85 million persons, followed

by southern China (65 million) and eastern China (46

million).

Passenger traffic by region, 2012 (million)






0

10

20

30

40

50

60

70

80

90


mill

ion

tonn

es

18

Xinjiang

Tibet

Qinghai

Gansu

Ningxia

Sichuan

Chongqing

Yunnan

Hainan

Guizhou

Guangdong Guangxi

Inner Mongolia

Shaanxi

Shanxi

Shandong

Henan

Hubei

Hunan Jiangxi

Jiangsu

Fujian

Zhejiang

Anhui Shanghai

Hebei


Heilongjiang

Jilin

> 500 million


10 million – 50 million <10 million

Not applicable

Again, Zhejiang registered the highest waterway

freight traffic in China

Freight traffic by province, 2012 (million tonnes)


In terms of waterway freight tonnage, the top three

busiest provinces in China were Zhejiang (738 million),

Jiangsu (586 million) and Guangdong (577 million).

In 2012, nearly half of the waterway freight traffic was

dispatched in eastern China at 2,235 million tonnes,

followed by southern China (1,078 million) and central

China (543 million).

Freight traffic by region, 2012 (million tonnes)






0

500

1000

1500

2000

2500


mill

ion

tonn

es

19

Shanghai port ranked first in the world

Top 10 coastal ports handling the largest container

throughput in China, 2012 (million TEU)

The total container throughput by container port in China

amounted to 177 million TEU in 2012, up by 8.4% yoy. 22

ports handled more than 1 million TEU in 2012, including

18 coastal ports and four inland ports.

Eight out of the world’s top 20 ports are located in China.

Shanghai was the world’s busiest container terminal in

2012, handling 32.6 million TEU, followed by Shenzhen

(Rank #4) and Ningbo-Zhoushan (Rank #6).

* Note: Ports in the Mainland China

Source: The Ministry of Transport and World Shipping Council

Qingdao (14.5m)

Ningbo-Zhoushan (16.8m)

Xiamen (7.2m)

Shanghai (32.5m)

Tianjin (12.3m)

Dalian (8.1m)

Global ranking, 2012 (million TEU)

Rank in 2011

Rank in 2012

Port 2012 (million TEU)

Annual growth (%)

1 1 Shanghai* 32.6 2.6 2 2 Singapore 31.7 5.7 3 3 Hong Kong 23.1 -5.3 4 4 Shenzhen* 22.9 1.6 5 5 Busan 17.0 5.3 6 6 Ningbo-Zhoushan* 16.8 14.3 7 7 Guangzhou* 14.7 3.4 8 8 Qingdao* 14.5 11.4 9 9 Dubai 13.3 2.1

11 10 Tianjin* 12.3 6.0 10 11 Rotterdam, 11.9 -0.1 13 12 Port Kelang 10.0 4.3 12 13 Kaohsiung 9.8 1.5 14 14 Hamburg 8.9 -1.5 15 15 Antwerp 8.6 -0.2 16 16 Los Angeles 8.1 1.6 20 17 Dalian* 8.0 25.0 18 18 Tanjung Pelepas 7.7 2.9 19 19 Xiamen* 7.2 11.1 - 20 Bremen 6.3 6.1

Guangzhou (14.5m)

Shenzhen (22.9m)

Lianyungung (5.0m)

Yingkou (4.9m)

20

Air Transport

21

Air passenger and freight traffic

Total air passenger traffic in China, 2008-2012

Total air passenger-kilometers in China,

2008-2012

Total air freight traffic in China, 2008-2012

Total air freight-tonne-kilometers in China,

2008-2012

The total air passenger

traffic in China rose by 8.9%

yoy in 2012 to 319 million

passengers. The total air

passenger-km reached

502.6 billion passenger-km,

up by 10.8% yoy.

The total air freight traffic in

China amounted to 5.5

million tonnes in 2012,

dropped by 2.2% yoy. The

total air freight-tonne-km was

16.4 billion tonne-km in

2012, recorded a yoy drop of

5.8%.


3.6

19.7 16.1

9.5 8.9

0

5

10

15

20

25

0

50

100

150

200

250

300

350

2008 2009 2010 2011 2012

%

mill

ion

pers

on


3.3

17.1 19.7 12.3

10.8

0

5

10

15

20

25

0

100

200

300

400

500

600

2008 2009 2010 2011 2012

%

billi

on p

asse

nger

-km


1.4 9.3

26.4 -1.0 -2.2

(5)

0

5

10

15

20

25

30

0

1

2

3

4

5

6

2008 2009 2010 2011 2012

%

mill

ion

tonn

e Total freight traffic yoy growth (%)

2.8 5.5

41.8 -2.8 -5.8

(10)

0

10

20

30

40

50

0

2

4

6

8

10

12

14

16

18

20

2008 2009 2010 2011 2012

%

billi

on to

nne-

km


22

Beijing Capital International Airport was the 2nd busiest

passenger airport in the world

Top 10 busiest passenger airports in China, 2012

(million)

In 2012, 21 out of the 183 civil airports handled more than 10 million

passengers, representing 74% of the total passenger throughput in

China. The top four passenger airports in Beijing Capital,

Guangzhou, Shanghai Pudong and Shanghai Hongqiao together

accounted for 31% of the total passenger throughput in China.

Beijing Capital International Airport was the second busiest

passenger airport in the world, carrying 81.9 million passengers in

2012.

*Note: Airports in the Mainland China

Source: China Statistical Yearbook (Abstract) 2013 and Airport Council International

Xiamen (17 million)

Shanghai Pudong + Hongqiao

(79 million)

Shenzhen (30 million)

Xi’an (23 million)

Global ranking (million) Rank in

2012 Airport 2012

(million) Annual

growth (%) 1 Atlanta United States 95.5 3.3 2 Beijing Capital* China 81.9 4.1 3 London Heathrow United Kingdom 70.0 0.9 4 Tokyo Haneda Japan 66.8 6.7 5 Chicago United States 66.6 -0.1 6 Los Angeles United States 63.7 3.0 7 Paris France 61.6 1.1 8 Dallas/Fort Worth United States 58.6 1.4 9 Jakarta Indonesia 57.8 12.1

10 Dubai United Arab Emirates 57.7 13.2 11 Frankfurt Germany 57.5 1.9 12 Hong Kong Hong Kong, China 56.1 5.1 13 Denver United States 53.2 0.6 14 Bangkok Thailand 53.0 10.6 15 Singapore Singapore 51.2 10.0 16 Amsterdam Netherlands 51.0 2.6 17 New York United States 49.3 3.5 18 Guangzhou* China 48.5 7.8 19 Madrid Spain 45.2 -9.0 20 Istanbul Turkey 45.1 20.6 21 Shanghai Pudong* China 44.9 8.3

Beijing (82 million)

Guangzhou (48 million)

Chengdu (32 million)

Chongqing (22 million)

Hangzhou (19 million)

Kunming (24 million)

23

Shanghai Pudong International Airport was the 3rd busiest

cargo airport in the world

Top 10 busiest cargo airports in China, 2012

(million tonnes)

In 2012, 20 out of the 183 civil airport handled more than

100,000 tonnes of goods, accounting for 88% of the total air

freight throughput of the year. The top four airports in Shanghai

Pudong, Beijing Capital, Guangzhou and Shenzhen together

accounted for 57% of the total air freight throughput in China.

Shanghai Pudong International Airport was the third busiest

cargo airport in the world, carrying 2.94 million tonnes in 2012.

*Note: Airports in the Mainland China

Source: China Statistical Yearbook (Abstract) 2013 and Airport Council International

Global ranking (million tonnes) Rank in

2012 Airport 2012

(million tonnes)

Annual growth (%)

1 Hong Kong Hong Kong, China 4.06 2.2 2 Memphis United States 4.02 2.5 3 Shanghai Pudong* China 2.94 -5.3 4 Incheon South Korea 2.46 -3.3 5 Anchorage United States 2.45 -3.7 6 Dubai United Arab Emirates 2.27 3.1 7 Louisville United States 2.17 -0.9 8 Paris France 2.15 -6.5 9 Frankfurt Germany 2.07 -6.7

10 Tokyo Narita Japan 2.01 3.1 11 Miami United States 1.93 4.9 12 Singapore Singapore 1.84 -3.0 13 Beijing Capital* China 1.79 6.0 14 Los Angeles United States 1.77 3.7 15 Taipei Taiwan, China 1.58 -3.1 16 London Heathrow United Kingdom 1.56 -0.7 17 Chicago United States 1.51 -3.0 18 Amsterdam The Netherlands 1.51 -2.4 19 Bangkok Thailand 1.35 1.8 20 New York United States 1.28 -5.5 21 Guangzhou* China 1.25 5.6 22 Indianapolis United States 0.93 2.7 23 Tokyo Haneda Japan 0.91 3.6 24 Shenzhen* China 0.85 3.5 25 Leipzig Germany 0.85 13.7

Nanjing (0.25 million)

Chengdu (0.51 million)

Xiamen (0.27 million)

Shanghai Pudong + Hongqiao

(3.37 million)

Guangzhou (1.25 million) Shenzhen

(0.85 million)

Hangzhou (0.34 million)

Kunming (0.26 million)

Chongqing (0.27 million)

Beijing (1.80 million)

24

Government Initiatives

25

The 12th Five-Year Development Plan for Integrated Transportation System

In July 2012, the State Council promulgated the 12th Five-Year Development Plan (FYP) for

Integrated Transportation System.

Key development goals for transport infrastructure by 2015

(end of the 12th FYP period):

Indicators Unit 2012 By 2015

Length of railway in

operation ‘000 km 98 120

- electrified % 53.2 60

Length of highway in

operation ‘000 km 4,200 4,500

Coastal deep-water

berths Unit 1,774

(2010 data) 2,214

Number of civil airports Unit 183 230

Source: China Statistical Yearbook (Abstract) 2013 and government website

For more details, please refer to our Newsletter Issue 104 - An Update on the Transport Infrastructure Development in China (2012) http://www.funggroup.com/eng/knowledge/research/china_dis_issue104.pdf

26

• Major tasks during the 12th FYP period:

▪ Accelerate the development of transport infrastructure

and facilities

▪ Set-up inter-regional transportation networks

▪ Develop 42 integrated transportation hubs

▪ Establish inter-city transportation networks

▪ Strengthen public transport network

▪ Set-up rural transportation facilities

▪ Accelerate the transportation linkage with Hong Kong and

Macau

▪ Uplift the technological level in transportation system and

equipment

▪ Improve transportation service quality, providing a

competitive market environment for the development of

transportation and logistics services

▪ Strengthen traffic safety management

▪ Save resources in the process of transportation planning,

construction, operation and maintenance; promoting

environmental protection

http://www.funggroup.com/eng/knowledge/research/china_dis_issue104.pdf

Dismantling the Ministry of Railways

Source: Compiled by Fung Business Intelligence Centre

For more details, please refer to our Newsletter Issue 113 - Logistics reports in China: http://www.funggroup.com/eng/knowledge/research/china_dis_issue113.pdf

The State Council announced its plan in March 2013 to dismantle the

Ministry of Railways (MOR) to form administrative and commercial arms.

Railway administration functions are to be supervised by the Ministry of

Transport (MOT), while the newly formed China Railway Corporation

(CRC) is to be responsible for all commercial activities.

It is expected that restructuring will enhance China’s transportation

capabilities, as rail, road, water and air transport are managed and

monitored under the same umbrella, the MOT. Integration should remove

barriers against developing inter-modal transport between rail and other

transport modes.

Ministry of

Railways

Ministry of

Transport Administrative arm

Supervised by

Commercial arm China Railways

Corporation

Newly established

• Formulating railway plans and policies

• Establishing railway technology standards

• Supervising railway work safety

• Assuring transport service quality and railway project quality

• Dispatch and command of rail transport

• Freight and passenger transport management

• Railway construction

Dismantling of

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Expanding VAT reform pilot programme nationwide

In April 2013, the State Council announced that it will expand the current Value-Added

Tax (VAT) pilot programme nationwide and cover more services industries under the

pilot scope.

The VAT reform, which replaces Business Tax with VAT in the transportation service

sector and selected modern service sectors, was first rolled out in Shanghai on 1

January 2012, and was later expanded to a number of provinces and cities in China

including Beijing, Tianjin, Jiangsu, Zhejiang, Anhui, Fujian, Hubei and Guangdong. VAT

rates for the transportation and logistics auxiliary service sectors are 11% and 6%,

respectively.

The nationwide expansion announced will complete the first stage of the rollout of the

VAT reform. Meanwhile, the scope of the VAT reform has also been expanded. The

State Council has indicated that the rail transport, postal and telecommunication

industries will be covered by the VAT pilot programme in the near future.

Transportation services sector Modern services sectors

Effective from 1 January 2012

- Road transport - Water transport - Air transport - Pipeline transport

- Research, development and technical services - Information technology services - Cultural creative services - Logistics auxiliary services - Certification and consulting services - Tangible, movable property leasing services

Effective from 1 August 2013

- Production, broadcast and publication of radio, films and television programmes

Source: Compiled by Fung Business Intelligence Centre

For more details, please refer to our Newsletter Issue 113 - Logistics reports in China: http://www.funggroup.com/eng/knowledge/research/china_dis_issue113.pdf

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Date Name of Policy Launched by Key Highlights

May 2012 Opinions on Encouraging Private Investment in Railways

Ministry of Railways

- Support private enterprises to invest in the construction of railway projects, including dedicated passenger lines, inter-regional lines, dedicated coal lines, rail stations, etc.

- Encourage private enterprises to provide passenger and freight services - Encourage private enterprises to participate in inspection and safety

evaluation of rail projects, etc.

July 2012 Opinions on Strengthening Road Transport Safety

The State Council

- Strengthen safety management of road transport enterprises via regulating the operation activities and standardizing road safety mechanism of enterprises

- Reinforce the safety responsibility of road transport enterprises

July 2012 Opinions on Promoting the Development of Civil Aviation Industry

The State Council

- Strengthen airport network planning and the connectivity between hub airports and small airports

- Accelerate the development of general aviation - Enhance airport competitiveness in the international aviation market - Accelerate the establishment of a modernized air space system

August 2012

Opinions on Improving Management and Accelerating the Healthy Development of the Shipping Sector

Ministry of Transport

- Enhance market surveillance and analysis of the shipping sector - Strengthen resource allocation and vessels’ capacity control - Encourage the development of shipping enterprises by promoting merger

and acquisition, and organizational restructuring

September 2013

Action Plan of Accelerating the Development of Yangtze River and Other Inland Waterways (2013 – 2020)

Ministry of Transport

- Accelerate the construction of inland waterways networks along Yangtze River, Xijiang River, Beijing-Hangzhou Grand Canal and the Pearl River Delta

- Optimize the hubbing functions of inland ports - Upgrade the service standard of inland waterways - Support project development and standardize the requirement of each

project

Major government policies related to transport

infrastructure development

Source: Government websites 29

For more information

Fung Business Intelligence Centre

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888 Cheung Sha Wan Road,

Kowloon, Hong Kong

Tel: 2300 2470 Fax: 2635 1598

Email: [email protected]

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as to the contents hereof. Reproduction or redistribution of this material without prior written consent of the Fung Business Intelligence Centre is prohibited.

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