Topic: Is transport, distribution and logistics in mainland China efficient?
The distribution, transportation and logistics area of China is considered to be extremely intricate and complex as well as being very competitive. Companies far and wide continue to fight for a share within China as their market rapidly grows from time to time. Their economic growth has seen to have increased in the past years positioning them second to the United States. China’s current physical infrastructure has also been developing quickly over time although executives have realised that operational and regulatory processes have often hindered efficiency. This determines the fact that the logistics systems need to be enhanced and improved immensely therefore the distribution of products and services ...view middle of the document...
According to Speece and Kawahara (1995), Chinas railways and shipping were considered insufficient to meet certain standards in 1990. As a form of transportation for goods to be delivered to different areas of the state, the railway system is seen as one of the only achievable solution. Such logistics barriers that exist within china are the lack of inadequate communications infrastructure, responsiveness to certain needs and time-consuming customs dealings. For China to be successful in their objectives of increasing efficiency and effectiveness in their supply chain they must harness modern technology and develop systems that facilitate in regulatory processes. This review endeavours to highlight and appraise the current conditions that China is in, in regards to their transportation, logistics and distribution systems.
Highways have taken over rail to become the leading mode of transport for freight, accounting for about 70 per cent of total freight moved. Shandong, Liaoning, Hebei, Guangdong and Jiangsu have recorded the highest volumes of freight transported via highways in 2000 (National Bureau of Statistics of China, 2001). The amount of freight that is transported via highways are short haul as the average distance travelled per highway journey is about 59km, compared to the average length for rail freight of about 780km. As a result, the freight ton‐kilometres registered for highways appear relatively low compared to those of inland waterway and normal railway.
Problems that arise from highway transport are that vehicles used for freight transportation are usually open-backed trucks covered with only tarpaulins. Whilst using these vehicles can contain costs, the costs that might be more significant are the ones whereby goods have been damaged or lost in the process of transportation making it common and substantial.