(Yicai) March 5 -- The cost of logistics in China fell by about CNY400 billion (USD55 billion) last year as a result of steps the government has taken in the transportation sector, Transport Minister Liu Wei said at the Two Sessions in Beijing today.

The government will further promote a unified and open transportation market this year, aiming to further reduce the cost, improve the quality, and enhance the efficiency of logistics, Liu said.

There are three key areas in logistics costs, Liu noted, namely transportation, warehousing, and management, with the first accounting for more than half. To further cut logistics costs this year, the ministry will focus on structural changes, strengthening hubs, and promoting multimodal transport solutions.

Liu said that since 2017, China has been making efforts to increase the role of waterways and railroads in logistics, as they have the advantages of large capacities, lower costs, and minimal pollution.

Bulk cargo and container shipments have been shifted from road to rail and water networks, and by 2024, rail freight turnover had surged by over 30 percent, while waterway cargo turnover expanded by 40 percent, Liu noted.

There has also been improvement of major transport hubs. Over the past two years, the ministry has implemented a national initiative to strengthen the country’s integrated cargo hubs, helping 37 cities to complete more than 500 projects and fostering a new batch of high-efficiency transport centers.

Liu said that China now has the world's largest high-speed rail network, expressway system, postal-delivery network, and world-class port cluster. The national, integrated, and multi-dimensional transport network now covers over six million kilometers, with 90 percent of its backbone already constructed.

Known as the Two Sessions, the National People’s Congress and the Chinese People's Political Consultative Conference meet each March to consider proposals and set the country's political and economic priorities.

Editor: Tom Litting