Following the principles of “market-driven, government-guided; systematic thinking, overall advancement; innovation-driven, collaborative integration; green, low-carbon, safe resilience”, by 2025, a modern logistics system that is well-suited for supply and demand, interconnected domestically and internationally, safe, efficient, and intelligent, with a green focus, will be largely established. The structure of freight transportation will be further optimized, with an increase of 0.5 percentage points in railway freight volume compared to 2020. The annual growth rate of intermodal container transportation by rail and water will exceed 15%, and the proportion of railway and inland waterway container transport as well as intermodal container transport by rail and water will significantly rise. This article, in conjunction with the special news briefing by China's National Development and Reform Commission interpreting the content of the “14th Five-Year Plan for Modern Logistics Development”, will outline the current status and plans for container logistics as follows:

01. Promoting Cost Reduction to Support High-Quality Development of the Real Economy through Logistics

In recent years, the level of social logistics costs in China has steadily decreased. In 2021, the ratio of total social logistics costs to GDP was 14.6%, a decrease of 3.4 percentage points from 2012, and the gap with major economies has continued to narrow. The “Plan” identifies "promoting the enhancement of logistics quality, efficiency, and cost reduction" as an important task for the development of modern logistics during the 14th Five-Year Plan period. It explicitly sets the goal to reduce the ratio of total social logistics costs to GDP by around 2 percentage points by 2025 compared to 2020.

Focusing on reducing costs across the entire supply chain and systemic cost reduction, emphasis is placed on lowering the level of social logistics costs by improving the quality of logistics development and enhancing logistics efficiency. On one hand, this involves addressing bottlenecks across transportation modes and operational stages, expanding the supply of integrated logistics services with low cost and high efficiency, such as by promoting seamless connections between warehouses and distribution centers. On the other hand, it involves further optimizing the structure of freight transportation by reasonably and orderly advancing the "shift from road to rail" and the "shift from road to water" for bulk commodities and long-distance transportation. This initiative aims to increase the proportion of railway freight volume by 0.5 percentage points compared to 2020, achieve an annual average growth of over 15% in intermodal container transportation by rail and water, and promote a "quantity-based cost reduction" by streamlining costs across various logistical stages, ultimately transitioning from a focus on "quantity-based cost reduction" to a more comprehensive "systemic cost reduction" centered around enhancing the logistics operational system and improving logistics quality and efficiency.

Improvements to the inland waterway transportation network are essential. This includes coordinating the direct and interconnected development between rivers and seas, leveraging the efficiency of near-sea routes, the Yangtze River waterway, Pearl River waterway, and steadily advancing the “shift from road to water” of goods transportation. Promoting the electronic documentation of intermodal rail-water transportation operations will facilitate information exchange between railways and ports, allowing for the sharing of information on train status, loading and unloading, in-transit cargo, arrival notifications, port handling, cargo storage, vessel arrivals and departures, as well as reservations for vessel schedules and capacities. Supporting ports and railway stations in expediting the improvement of integrated oil and gas transportation networks will effectively align with industrial layouts such as petrochemicals, thereby increasing the proportion of pipeline transportation.

02. Promoting Adjustment in Freight Transportation Structure, Actively Advancing Multimodal Transport Development

Recently, China has accelerated the adjustment of transport structure, with stable increase of the proportion of railway freight volume and the growth rate of multimodal freight volume a year beyond 20%. All departments jointly carried out the establishment of four batches of 116 multimodal transport demonstration projects. In 2021, the demonstration projects completed an accumulated container multimodal transport volume of 6.2 million TEU and opened 450 intermodal routes. Therefore, the proportion of railway freight volume in total social freight volume increased from 7.8% in 2017 to 9.2% in 2021, while the proportion of waterway freight volume in total social freight volume increased from 14.1% in 2017 to 15.8% in 2021.

Next, China will continue to accelerate the transformation of transportation modes and achieve new milestones in transportation structure adjustments:

Further promoting optimized transportation structures in key regions. Focusing on areas such as the Beijing-Tianjin-Hebei region and its surrounding areas, the coal-producing regions of Shanxi, Shaanxi, and Inner Mongolia, efforts will persistently intensify to promote the "shift from road to rail" and "shift from road to water" for bulk goods and container long-distance transportation.

Accelerating the construction of dedicated railway lines. There will be further enhancements to the port logistics system, promoting the improvement and expansion of dedicated railway lines connected to ports. This initiative will transform railway lines from mere port connections to comprehensive connections with key port areas. It aims to achieve seamless facility connectivity, information exchange, and integrated management. Through collective efforts, the goal is to achieve a railway entry rate of over 70% for important coastal port areas by 2025.

Expediting innovation in transportation organizational models. This involves deepening the construction of multimodal transport demonstration projects, strengthening the alignment of transportation service regulations, actively developing a unified system for multimodal transport, and expediting the cultivation of operators for multimodal transport. There will be a strong push towards the development of intermodal rail-water transport, encouraging joint marketing among port-rail-related joint ventures, continuously expanding the scale of transitioning from bulk to containerized cargo.

03. Strengthening Digital Technology Empowerment in Logistics, Driving Smart Logistics Development

In recent years, China's smart logistics has seen rapid development, providing robust support for the establishment of a modern logistics system. The “Plan” considers smart logistics as a crucial lever for driving high-quality logistics development and will focus on strengthening policy guidance from three aspects during the “14th Five-Year Plan” period, actively promoting the development of smart logistics.

Using digital transformation as a cornerstone to fortify the foundation of smart logistics development. This involves enhancing logistics digital infrastructure, advancing the digitization of logistics elements such as logistics stations, transportation tools, and goods, fostering connectivity between online and offline logistics resources. Encouraging the transition of enterprise information systems to the cloud, incentivizing platform companies and digital service providers to develop cloud platforms and services tailored for small and medium-sized enterprises (SMEs), strengthening the collection, analysis, and application of large-scale logistics data to enhance its value. Cultivating a market for logistics data elements while coordinating data exchange and security needs, refining market transaction rules, and promoting secure and efficient circulation of logistics data.

Using intelligent transformation as the focal point to promote innovation in logistics business models, further advancing the application of next-generation information technologies and facilities such as 5G communication, BeiDou Navigation Satellite System, mobile internet, big data, and artificial intelligence in the modern logistics field. Categorically driving the upgrade of logistics infrastructure, accelerating the development of Internet of Things -related facilities, and fostering new types of logistics infrastructure like smart logistics hubs, smart logistics parks, and intelligent warehousing logistics bases. Encouraging technological innovation in smart logistics and expanding commercial applications in smart logistics scenarios, promoting the use of automated, intelligent logistics technology and equipment, as well as smart management technologies such as automatic sensing, control, and decision-making. Researching and promoting low-cost, modular, user-friendly, and easy-to-maintain smart equipment tailored for small and medium-sized enterprises (SMEs).

Using networked upgrades as a lever to stimulate modern logistics development vitality. Encouraging the establishment of smart logistics "brains" in cities where conditions allow, facilitating comprehensive connectivity and promoting the sharing of urban logistics resources to optimize urban logistics operations. Strengthening the construction of logistics public information service platforms, promoting government departments such as transportation, public security, market supervision, and enterprises including railways, ports, and aviation to open public data related to logistics to the society.

04. Advancing Energy Conservation and Emission Reduction in the Logistics Field, Promoting Safe and Resilient Development.

The “Plan” integrates green and environmental protection concepts throughout the entire chain of modern logistics development, aiming to enhance the sustainable development capability of logistics. It proposes strengthening the construction of supporting facilities such as charging stations for freight vehicles, hydrogen refueling stations, shore power facilities for inland vessels, and liquefied natural gas (LNG) refueling stations. This initiative seeks to expedite the application of new energy vehicles compliant with the National VI Emission Standards, especially in modern logistics, particularly urban distribution, and promote the use of new energy forklifts in warehouse settings.

Continued efforts will be made to intensify pollution control for diesel trucks. There will be ongoing promotion of transportation structural adjustments to increase the proportion of railway and waterway transportation. The plan aims to encourage logistics enterprises to reinforce green energy and low-carbon management, promote contract energy management models, and actively conduct energy-saving diagnostics. Emphasis will be placed on the development and application of new green logistics technologies and equipment, promoting the use of reusable packaging, reducing excessive and secondary packaging, and advocating for packaging reduction and reuse. Accelerating the widespread application of standardized logistics turnover boxes and advancing the construction of a pallet recycling and sharing system will also be prioritized.