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China needs to set up systematic road logistics operation network

XU Guanju, Vice Chairman of the All-China Federation of Industry and Commerce (ACFIC) and a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), suggested on the recently held CPPCC that China should build up a systematic road logistics operation network to enhance efficiency, Xinhua reports.

Mr Xu said China's logistics industry, as the backbone to the country's manufacturing industry and economic development, has been making slow progress in industrial upgrade and efficiency.

There are many barriers to efficiency enhancement of China's logistics industry. Mr Xu pointed out that most of the service providers are small in scale, fragmented and disorganised. Also, they lack discipline, and their service quality is not up to the standard. These are the problems in a road logistics industry that accounts for over 70 per cent of China's total cargo traffic.

Mr Xu suggested that the Chinese government should encourage innovation in road logistics, which should also be included in the policy-making agenda. Also, a so-called "negative list" should also be introduced to the industry. Next, the government and enterprises should work together to create synergy in the industry to enable market-oriented competition. Thirdly, the government should invest more in helping the industry to upgrade and to diversify.