Impact of High Speed Rail on Logistics in China

With the rapid expansion of high-speed railway (HSR) in China, railways gradually speed up and bridge the speed gap between railway and civil aviation, thus, impose a great impact on the logistical competitiveness of civil aviation. High-speed rail service in China was introduced April 18, 2007, and has become immensely popular. With ridership exceeding 1.44 billion in 2016, China's HSR service was the most heavily used in the world. The advent of HSR has had a transformative impact on Chinese society and economy, including logistics. One example is on the supply chain of food. The rapid expansion of high-speed rail could significantly boost the efficiency of China’s food supply chain for two reasons. First, it helps to release some of the burdens of carrying passengers from the ordinary rail system so that ordinary rail lines could be designated to transport food and other materials at a cheaper price. Second, in times of emergency, high-speed rails could be deployed for food transportation. Food could then be transported in a timely manner to the regions in demand of food to prevent public panic and thus stabilize the market. HSR is a new emerging transportation mode in China, and it will greatly change the potential market competence of railway, aviation, and other transportation modes. High-speed railway will obtain more market share while other transportation modes will lose market share in the logistical service area.

Rujun Wang

---

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A, Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.