Development of China's Transport

III. Playing a Basic, Pioneering and Serving Role

To complete the building of a moderately prosperous society in all respects, the Chinese government gives priority to transport, which plays a basic, pioneering and serving role in promoting economic and social development, in serving the people and improving their living standards, and in enhancing ecological progress.

1. Promoting Economic and Social Development

Supporting economic growth. Investment in transport infrastructure is the engine of stable economic growth. During the 12th Five-Year Plan period (2011-2015), a total of RMB12.5 trillion was invested in China's transport infrastructure. The improvement in the transport network and relevant services has increased the efficiency of economic operation, reduced logistics cost, boosted the development of relevant industries such as automobiles, shipping, metallurgy, logistics, e-commerce, tourism and real estate, and created many jobs. In 2015 China's total online purchasing transactions, supported by the postal industry, surpassed RMB3 trillion.

Ensuring cargo transport. China's convenient and efficient logistics network has ensured the smooth and efficient transition between different means of transport, enhanced the efficiency of the logistics system, and guaranteed the transport of coal, crude oil, iron ore, grain, and other key items of cargo. In 2015 some 670 million tons of coal were shipped at Chinese ports, which also unloaded 320 million tons of crude oil and 1 billion tons of iron ore. Express lines were made available for fresh farm produce, effectively meeting the needs of the people.

Facilitating the coordinated development between regions and between urban and rural areas. The Chinese government gives priority to the development of transport and enables the transport industry to play a pioneering role in supporting the regional development of eastern, central, western and northeastern China and the Three Initiatives, in an effort to connect China's developed, moderately developed and underdeveloped areas. China is building economic belts and urban agglomerations along the railway lines from Beijing to Shanghai and Guangzhou, along the coastline and the Yangtze River, near the ports in the Yangtze River and Pearl River deltas and along the Bohai Sea Rim, striving to make these areas the most economically viable and populous in the country. The growth of intercity highway transport and the development of intercity rails have facilitated the integrated development of urban agglomerations, and the integration of urban and rural transport is bringing the urban and rural areas closer economically.

2. Serving the People and Improving Their Living Standards

Providing transport services to the people and making their travel safe and convenient. China is striving to build a sound system to improve transport safety, upgrade the transport structure and improve transport services, in an effort to provide better services to people. The transport capacity and service during the Spring Festival (i.e., Chinese New Year) and other travel peaks have been significantly enhanced. In cities the percentage of people taking public transit is on the rise, and comfort level of such transport means has been greatly enhanced. With the rapid growth of the "Internet+transport," passengers can now check the real-time status of traffic, plan their trips ahead of time, purchase tickets online, and enjoy "smart" parking and other one-stop services. The transport service and complaints hotline 12328 has been put into use.

Supporting the poverty reduction and eradication effort. Entering the 21st century, China has initiated a dozen projects to connect townships, towns and administrative villages to the road grid, and built transport infrastructure in contiguous impoverished areas, with increased support for transport development in rural and impoverished areas. During the 12th Five-Year Plan period, over RMB550 billion of vehicle purchase tax was allocated to support transport development in poor areas. In contiguous impoverished areas, 83.8 percent of county seats now have roads of Grade II or above, and 86.2 percent of administrative villages have tarmac and cement roads. More buses now operate on routes linking poverty-stricken areas, and ropeways are being replaced by bridges.

Effectively addressing emergencies. The transport emergency response system plays a key role in the rescue and relief work following natural disasters, accidents and similar contingencies. In the wake of the Wenchuan earthquake in 2008, Yushu earthquake in 2010 and the devastating snowstorms in southern China in 2008, emergency transport response teams were among the first to arrive at the scene and open up "lifelines" for relief. China' s marine search and rescue teams have been engaged in rescue work connected with many emergencies at sea, and actively took part in the search for the Malaysian Airline flight MH370. In the period 2010-2015 China organized and coordinated 12,411 marine search and rescue missions, saving 108,464 lives, including 8,070 foreigners.

3. Enhancing Ecological Progress

Promoting energy-saving and emission-reduction. China has been vigorously promoting the green development of transport. Compared to the 2010 levels, in 2015 the comprehensive energy consumption per unit railway transport dropped by six percent, the energy consumption per unit transport turnover of operating vehicles and ships went down by 6.5 percent and 10.5 percent respectively, and the ton/km fuel consumption of civil aviation decreased by almost five percent. The strategy of "public transit priority" has been implemented, supported by growing new- and clean-energy means of transport and a rapidly developing public bicycle rental system. In the Pearl River and Yangtze River deltas, and Bohai Sea Rim (Beijing-Tianjin-Hebei) area, restriction zones have been set up to curb emissions from ships. Along the arteries of the Yangtze River and the Beijing-Hangzhou Grand Canal, and in some coastal regions, pilot and demonstration projects of LNG use have been launched for water-borne transport, oil vapor recovery units installed at some ports and shore power provided to ships.

Protecting the ecological environment. China is promoting ecological conservation in the planning, designing, construction, and operation of transport projects, and has built a number of railways, highways, ports and sea routes for demonstration purposes. It is also experimenting with ecological restoration technologies in transport infrastructure in deserts, alpine regions, and reclamation areas. During the 12th Five-Year Plan period China restored the ecology along 1,300 km of transport lines, with a total area of 50 million sq m. The recycling rate of road-surface materials reached 40 percent. Measures have been adopted to control dust pollution at coal and other minerals transport ports, and equipment storages and installation venues have been set up in coastal areas and along the Yangtze River in case of oil spills. Instead of tracks laid on the ground, many of China's high-speed trains run on elevated rails to spare farmlands and keep the towns along the routes intact.

IV. Opening up and International Cooperation

The Chinese government proactively enhances its connectivity with the world community, continuing to open up to and deepening its cooperation with the rest of the world. An all-dimensional, multi-layer and multi-channel framework has been formed in transport as regards opening up to the outside world and international cooperation.

1. International Passenger and Freight Transport

Strengthening international connectivity. By the end of 2015 China had established railway connections with five of its 14 neighboring countries, with 11 railway crossing points. Multiple container trains operate on railways to Central Europe and Central Asia; highway crossing points in border areas, open around the year, are connected to roads at Grade II or above; and a group of logistics parks and cargo operation centers capable of handling international logistics have been put into use. China actively promotes international and regional cooperation in shipping, and is jointly pushing forward the navigation development of the Lancang-Mekong River with Laos, Myanmar and Thailand. Through code-sharing, airline alliance, joint operation of air routes and equity cooperation, China' s civil aviation is striving to improve its international flight network, increase the number of flights and expand its operational scope. In 2015 Chinese express delivery services extended their networks overseas, with 430 million items of mail delivered to international destinations as well as to Hong Kong, Macao and Taiwan. At the same time, China is strengthening cooperation with countries involved in the Belt and Road Initiative, actively pushing forward the interconnectivity of transport infrastructure and enhancing transport convenience. In 2015 Chinese citizens made some 120 million trips overseas via various means of transport.

Supporting foreign trade. China is a major trading nation, and the quickened development of its transport provides a strong basis for building a new multi-dimensional structure of opening up and for enhancing China's competitiveness internationally. An important pillar for developing an export-oriented economy, China's maritime transport carries 90 percent of the country's foreign trade cargo, 98 percent of imported iron ore, 91 percent of imported crude oil, 92 percent of imported coal and 99 percent of imported grain. Trains between China and Europe have become an important component of international through freight traffic.

2. International Exchanges and Cooperation and Opening up

Actively participating in international affairs. The Chinese government has always valued the role of and actively participated in the activities of international transport organizations. It takes measures to fulfill its obligations, and plays a constructive role in the Organization for Railway Cooperation (OSJD), International Maritime Organization (IMO), International Civil Aviation Organization (ICAO), Universal Postal Union (UPU) and other important international transport organizations. As a founder of the OSJD, China has made great contribution in formulating the organization's various standards and regulations. China has served as member of both the UPU's Postal Operations Council and Council of Administration since it resumed its legitimate seat at the organization in 1972. It has been elected 14 times as a category-A member of the IMO Council since 1989, and five times as a category-A member of the ICAO Council since 2004. China actively promotes bilateral and regional cooperation. It has signed intergovernmental agreements and bilateral and regional documents on railway, highway, maritime transport, civil aviation and postal service cooperation with more than 100 countries. Several transport cooperation mechanisms have been set up, such as the China-ASEAN and Shanghai Cooperation Organization transport ministers' meetings, and a proposal has been made by China to establish a seaport service organization for APEC. China actively fulfills its international obligations, supports the transport development of other developing countries, and has aided the construction of a series of transport projects in Asia and Africa.

Continuing to expand the scope of opening up. The transport industry was one of China' s first industries to open to the outside world. In 1979 the China Merchants Group, then under the administration of China's former Ministry of Transport, founded the Shekou Industrial Zone in Shenzhen, taking the first step in the country's opening-up initiative. In 1984 the Chinese government opened 14 coastal cities, and coastal ports became windows opened to the rest of the world. Today, in the area of transport infrastructure, except railway arteries and civil airports, all highways, bridges, ports, other types of railways and urban rail tracks are open to foreign capital as far as construction and operation is concerned. There is no limit on foreign capital for transport services such as highway freight, international container multimodal transport, and supporting services for international maritime transport.

Quickening the pace of Chinese enterprises' "going global." China has exhibited a strong competitive edge in the areas of railway building, transport projects and port operation. China transports one third of the total global maritime cargo. China's transport businesses are quickening their steps of "going global," and are transforming themselves from traditional labor export and project contracting entities to exporters of capital, technology, management and standards in the areas of transport infrastructure, port operation, ocean transport, transport equipment, ship inspection and maritime training.

V. Development Goals for the Next Five Years

During the 13th Five-Year Plan period (2016-2020), China will continue to develop its transport industry in accordance with the overall plan to seek economic, political, cultural, social, and ecological progress and the Four-pronged Strategy. It will implement the guideline of innovation, coordination, green development, opening up, and sharing of benefits, continue to center on the people's needs, improve the quality and efficiency of development, and fully utilize the comparative advantages of different means of transport. China will continue to develop its transport grid characterized by intelligent management, integrated services and green development, and build a comprehensive transport system with functional "nodes" that connect domestic and international transport channels, cover urban and rural areas, and provide integrated and efficient transport services. All this will contribute to the completion of the building of a moderately prosperous society in all respects, to the growth of the Chinese economy, and to connecting China more closely with the rest of the world.

Driving the reform of transport to a deeper level. China will promote the further integration of different means of transport, and build a safe, convenient, efficient, green, and economical modern transport system. It will push ahead the market-oriented reform of its railways, deepen reforms of the investment and financing system, financial powers and expenditure responsibilities, and reform its airspace management system. At the same time, it will further promote the transformation of government functions, continue to streamline administration and delegate powers to lower levels, strengthen regulations, improve government services and enhance administrative efficiency.

Building a transport network that covers the whole of China and extends beyond its borders. China will build a comprehensive transport network that spreads from east to west and south to north, construct passageways that extend beyond its borders, and develop sea routes for the Maritime Silk Road. China will develop a high-quality fast-transit grid, form a high-speed rail network, improve the national expressway network, build an appropriate number of expressways at the local level, and enhance the functions of airline hubs and national and regional airports. China will improve its basic road network to cover more areas, speed up the construction of railways in the central and western areas, upgrade national and provincial highways and construction of congested sections, improve coastal and inland river transport facilities, strengthen the construction of roads and airports in rural areas, and connect the oil and gas pipelines in different areas. China will improve its postal services and network, and strengthen the infrastructure for express mail delivery. By 2020 China will have 30,000 km of high-speed railways, covering 80 percent of big cities, and 30,000 km of newly renovated expressways. Administrative villages with the necessary conditions will have tarmac and cement roads and shuttle bus services, and all villages will have access to mail service.

Developing modern and efficient intercity transport. In urban agglomerations, China will build commuting circles of 1-2 hours between the central cities and between central and peripheral cities, and one-hour commuting circles between central cities and key peripheral towns. In urban areas it will vigorously develop intercity high-speed and suburban railways, and form a multi-level rail transit network. With priority focused on public transit, China will speed up the development of its urban rail and bus rapid transit, and other means of high-capacity public transport. By 2020 intercity railway networks will be completed in the urban agglomerations of the Beijing-Tianjin-Hebei, Yangtze River Delta, Pearl River Delta, middle reaches of the Yangtze River, Central Plains, Chengdu-Chongqing, and Shandong Peninsula areas. More efforts will be made in cities with three million or more residents to form urban rail transport networks, and about 3,000 km of new tracks will be added to the urban rail transit system. China will also strengthen the development of terminals for postal and express delivery services.

Building integrated transport hubs. China will enhance the layout of its transport hubs, build international transport hubs in Beijing, Shanghai and Guangzhou, and improve the services and functions of national, regional and local transport hubs. It will strengthen the construction of key transport centers in central and western China and key ports in border regions, and increase their impacts over a wider area. China will improve the services of its transport hubs, improve the transfer facilities and the collecting and distributing networks, enable seamless passenger and freight transfer, and coordinate different means of transport, so as to increase the efficiency of transport and logistics.

Promoting the green and intelligent development of transport services. China is striving to push forward the green development of transport through conservation and intensive use of resources and promoting the use of standardized, low-carbon, and modern equipment and energy-saving means in the transport sector. With the implementation of the "Internet+transport" action plan, China is encouraging the development of intelligent transport, and the application of advanced information technology and smart appliances. More efforts will be made in the development of through-transport, smart management and public information systems, in strengthening multimodal transport, and in enhancing the quality and profit of transport services.

Improving safety in the transport industry. China will improve the regulations and system for transport safety control, and see to it that the responsibilities of transport businesses and those of the supervising organs are thoroughly implemented. China will strengthen its capacity for emergency response and rescue, emphasizing precautionary measures, carrying out special actions to ensure transport safety and strengthening the screening of potential safety hazards and security risks. It will also focus on key areas, fully implement safety control in the transport industry, and resolutely strive to reduce the occurrence of serious accidents.

Conclusion

To achieve the Two Centenary Goals and realize the Chinese Dream of the great rejuvenation of the Chinese nation, higher standards must be set for the development of transport in China. Transport promotes development, exchanges bring about cooperation, and interconnectivity enables mutual benefits. The Chinese government will continue to improve the country's transport services so as to better serve China's socioeconomic development, and continue to strengthen cooperation in the area of transport with other countries so that they can take new opportunities and address challenges together to realize common development and prosperity.