China cuts 88 billion yuan in logistics costs in 2017

BEIJING - China reduced logistics costs by more than 88 billion yuan ($13.4 billion) in 2017, the Ministry of Transport said Monday.

The cuts were made through measures such as the removal of some road tolls in provincial-level regions and streamlined traffic services, according to the ministry.

Li Xiaopeng, minister of transport, said that China will continue to push supply-side structural reform in the transport industry and further lower logistics costs in 2018.

The country will expand pilot programs in highway toll collection and streamline some charges in ports, Li said.

Statistics from the National Development and Reform Commission showed that the cost of logistics in China took up about 14.9 percent of GDP in 2016, down by 1.1 percentage points from the previous year.

Although the ratio had dropped for four years in a row by 2016, it is still higher than some developing economies.

Authorities have stepped up reform in the transport sector this year to reduce the logistics burden of companies. Rail freight charges were canceled or lowered, while more means of financing were made available to companies in the logistics sector.