Freight Mobility and Intermodal Connectivity in China
Table of Contents
Sponsored by:
In cooperation with:
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American Association of State Highway
and Transportation Officials
-
National Cooperative Highway Research Program
FHWA-PL-08-020
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Technical Report Documentation Page
- Report No.: FHWA-PL-08-020
- Government Accession No.:
- Recipient's Catalog No.:
- Title and Subtitle: Freight Mobility and Intermodal Connectivity in China
- Report Date: May 2008
- Performing Organization Code:
- Author(s): David Cole, Tony Furst, Sharon Daboin,
Warren Hoemann, Dr. Michael Meyer,
Richard Nordahl, Marygrace Parker, Leo Penne,
Norman Stoner, Dr. Tianjia Tang
- Performing Organization Report No.:
- Performing Organization Name and Address:
American Trade Initiatives
P.O. Box 8228
Alexandria, VA 22306-8228
- Work Unit No. (TRAIS):
- Contract or Grant No.: DTFH61-99-C-005
- Sponsoring Agency Name and Address:
Office of International Programs
Office of Policy
Federal Highway Administration
U.S. Department of Transportation
American Association of State Highway and Transportation Officials
National Cooperative Highway Research Program
- Type of Report and Period Covered:
- Sponsoring Agency Code:
- Supplementary Notes:
FHWA COTR: Hana Maier, Office of International Programs
- Abstract:
Trade growth between the United States and China has increased U.S. interest in how the Chinese
transportation system handles exports. The Federal Highway Administration, American Association of State
Highway and Transportation Officials, and National Cooperative Highway Research Program sponsored a
scanning study to identify how China provides intermodal access to its ports and uses investment strategies
to foster freight mobility and intermodal connectivity.
The scan team learned that China's national, provincial, and metropolitan transportation policy is closely
coordinated with the country's economic policy and social harmony goals. The transportation system is
expanding rapidly to meet global intermodal freight demands and promote expansion into underdeveloped
regions of the country.
Team recommendations for U.S. implementation include reviving a national transportation infrastructure
focus to maintain U.S. competitiveness in the global market, conducting a study on how China uses
performance measures to manage transportation policy, and synthesizing the results of this and earlier
scans on intermodal freight and connectivity around the world.
- Key Words: freight mobility, intermodal connectivity, investment,
ports, rail, trade, transportation policy
- Distribution Statement:
No restrictions. This document is available to the
public from the: Office of International Programs,
FHWA-HPIP, Room 3325, U.S. Department of
Transportation, Washington, DC 20590
international@fhwa.dot.gov
www.international.fhwa.dot.gov
- Security Classify. (of this report): Unclassified
- Security Classify. (of this page): Unclassified
- No. of Pages: 60
- Price: Free
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Reproduction of completed page authorized
Freight Mobility
and Intermodal
Connectivity
in China - May 2008
Prepared by the International Scanning Study Team:
David Cole (cochair), Maine DOT
Tony Furst (cochair), FHWA
Sharon Daboin, Pennsylvania DOT
Warren Hoemann, American Trucking Associations
Dr. Michael Meyer (report facilitator), Georgia Institute of Technology
Richard Nordahl, California DOT
Marygrace Parker, I-95 Corridor Coalition
Leo Penne, AASHTO
Norman Stoner, FHWA
Dr. Tianjia Tang, FHWA
for
Federal Highway Administration
U.S. Department of Transportation
American Association of State Highway and Transportation Officials
National Cooperative Highway Research Program
International Technology Scanning Program
The International Technology Scanning Program,
sponsored by the Federal Highway
Administration (FHWA), the American
Association of State Highway and Transportation
Officials (AASHTO), and the National Cooperative
Highway Research Program (NCHRP), evaluates innovative foreign technologies and practices
that could significantly benefit U.S. highway transportation
systems. This approach allows advanced technology to
be adapted and put into practice much more efficiently
without spending scarce research funds to re-create
advances already developed by other countries.
FHWA and AASHTO, with recommendations from NCHRP,
jointly determine priority topics for teams of U.S. experts
to study. Teams in the specific areas being investigated
are formed and sent to countries where significant
advances and innovations have been made in technology,
management practices, organizational structure, program
delivery, and financing. Scan teams usually include
representatives from FHWA, State departments of
transportation, local governments, transportation trade
and research groups, the private sector, and academia.
After a scan is completed, team members evaluate findings
and develop comprehensive reports, including recommendations
for further research and pilot projects to verify the
value of adapting innovations for U.S. use. Scan reports,
as well as the results of pilot programs and research, are
circulated throughout the country to State and local
transportation officials and the private sector. Since
1990, about 70 international scans have been organized
on topics such as pavements, bridge construction and
maintenance, contracting, intermodal transport,
organizational management, winter road maintenance,
safety, intelligent transportation systems, planning,
and policy.
The International Technology Scanning Program has
resulted in significant improvements and savings in road
program technologies and practices throughout the United
States. In some cases, scan studies have facilitated joint
research and technology-sharing projects with international
counterparts, further conserving resources and advancing
the state of the art. Scan studies have also exposed
transportation professionals to remarkable advancements
and inspired implementation of hundreds of innovations.
The result: large savings of research dollars and time, as
well as significant improvements in the Nation's
transportation system.
Scan reports can be obtained through FHWA free of charge
by e-mailing international@fhwa.dot.gov. Scan reports are
also available electronically and can be accessed on the
FHWA Office of International Programs Web Site
at www.international.fhwa.dot.gov.
International Technology Scan Reports
International Technology
Scanning Program: Bringing Global
Innovations to
U.S. Highways
All Publications
are Available on
the Internet at
www.international.fhwa.dot.gov.
Safety
- Safety Applications of Intelligent Transportation Systems in Europe
and Japan (2006)
- Traffic Incident Response Practices in Europe (2006)
- Underground Transportation Systems in Europe: Safety, Operations,
and Emergency Response (2006)
- Roadway Human Factors and Behavioral Safety in Europe (2005)
- Traffic Safety Information Systems in Europe and Australia (2004)
- Signalized Intersection Safety in Europe (2003)
- Managing and Organizing Comprehensive Highway Safety
in Europe (2003)
- European Road Lighting Technologies (2001)
- Commercial Vehicle Safety, Technology, and Practice in Europe (2000)
- Methods and Procedures to Reduce Motorist Delays in European
Work Zones (2000)
- Innovative Traffic Control Technology and Practice in Europe (1999)
- Road Safety Audits — Final Report and Case Studies (1997)
- Speed Management and Enforcement Technology: Europe and
Australia (1996)
- Safety Management Practices in Japan, Australia, and New Zealand
(1995)
- Pedestrian and Bicycle Safety in England, Germany, and the
Netherlands (1994)
Planning and Environment
- Active Traffic Management: The Next Step in Congestion
Management (2007)
- Managing Travel Demand: Applying European Perspectives to
U.S. Practice (2006)
- Transportation Asset Management in Australia, Canada, England,
and New Zealand (2005)
- Transportation Performance Measures in Australia, Canada, Japan,
and New Zealand (2004)
- European Right-of-Way and Utilities Best Practices (2002)
- Geometric Design Practices for European Roads (2002)
- Wildlife Habitat Connectivity Across European Highways (2002)
- Sustainable Transportation Practices in Europe (2001)
- Recycled Materials in European Highway Environments (1999)
- European Intermodal Programs: Planning, Policy, and
Technology (1999)
- National Travel Surveys (1994)
Policy and Information
- European Practices in Transportation Workforce Development (2003)
- Intelligent Transportation Systems and Winter Operations in
Japan (2003)
- Emerging Models for Delivering Transportation Programs and
Services (1999)
- National Travel Surveys (1994)
- Acquiring Highway Transportation Information from Abroad (1994)
- International Guide to Highway Transportation Information (1994)
- International Contract Administration Techniques for Quality
Enhancement (1994)
- European Intermodal Programs: Planning, Policy, and Technology
(1994)
Operations
- Freight Mobility and Intermodal Connectivity in
China (2008)
- Commercial Motor Vehicle Size and Weight Enforcement in
Europe (2007)
- Active Traffic Management: The Next Step in Congestion
Management (2007)
- Managing Travel Demand: Applying European Perspectives to
U.S. Practice (2006)
- Traffic Incident Response Practices in Europe (2006)
- Underground Transportation Systems in Europe: Safety, Operations, and
Emergency Response (2006)
- Superior Materials, Advanced Test Methods, and Specifications in
Europe (2004)
- Freight Transportation: The Latin American Market (2003)
- Meeting 21st Century Challenges of System Performance Through
Better Operations (2003)
- Traveler Information Systems in Europe (2003)
- Freight Transportation: The European Market (2002)
- European Road Lighting Technologies (2001)
- Methods and Procedures to Reduce Motorist Delays in European
Work Zones (2000)
- Innovative Traffic Control Technology and Practice in Europe (1999)
- European Winter Service Technology (1998)
- Traffic Management and Traveler Information Systems (1997)
- European Traffic Monitoring (1997)
- Highway/Commercial Vehicle Interaction (1996)
- Winter Maintenance Technology and Practices — Learning from
Abroad (1995)
- Advanced Transportation Technology (1994)
- Snowbreak Forest Book — Highway Snowstorm Countermeasure
Manual (1990)
Infrastructure—General
- Audit Stewardship and Oversight of Large and Innovatively
Funded Projects in Europe (2006)
- Construction Management Practices in Canada and Europe (2005)
- European Practices in Transportation Workforce Development (2003)
- Contract Administration: Technology and Practice in Europe (2002)
- European Road Lighting Technologies (2001)
- Geometric Design Practices for European Roads (2001)
- Geotechnical Engineering Practices in Canada and Europe (1999)
- Geotechnology — Soil Nailing (1993)
Infrastructure—Pavements
- Warm-Mix Asphalt: European Practice (2008)
- Long-Life Concrete Pavements in Europe and Canada (2007)
- Quiet Pavement Systems in Europe (2005)
- Pavement Preservation Technology in France, South Africa, and
Australia (2003)
- Recycled Materials In European Highway Environments (1999)
- South African Pavement and Other Highway Technologies
and Practices (1997)
- Highway/Commercial Vehicle Interaction (1996)
- European Concrete Highways (1992)
- European Asphalt Technology (1990)
Infrastructure—Bridges
- Bridge Evaluation Quality Assurance in Europe (2008)
- Prefabricated Bridge Elements and Systems in Japan and
Europe (2005)
- Bridge Preservation and Maintenance in Europe and South
Africa (2005)
- Performance of Concrete Segmental and Cable-Stayed
Bridges in Europe (2001)
- Steel Bridge Fabrication Technologies in Europe and Japan
(2001)
- European Practices for Bridge Scour and Stream Instability
Countermeasures (1999)
- Advanced Composites in Bridges in Europe and Japan (1997)
- Asian Bridge Structures (1997)
- Bridge Maintenance Coatings (1997)
- Northumberland Strait Crossing Project (1996)
- European Bridge Structures (1995)
Executive Summary
China's transportation system is
rapidly expanding to support
economic growth, meet
projected global intermodal
freight demands, and promote
expansion into underdeveloped
regions of the country. Given the current understanding
of intermodal freight movement that was
not available when the United States developed
its port capacity, the purpose of this scan was to
identify how China provides intermodal access to
its new, greenfield maritime ports and the possible
application of those methods in the United States.
The scan also looked at the investment strategies
adopted by Chinese officials to foster freight
mobility and intermodal connectivity in support
of their global competitiveness.
The scan team represented a diverse set of interests
and concerns for national and State decisionmaking.
In addition to Federal Highway Administration
(FHWA) officials at the national and division levels,
the team included representatives from the
departments of transportation for California, Maine,
and Pennsylvania; a representative of the I-95
Corridor Coalition; a representative of the American
Association of State Highway and Transportation
Officials (AASHTO); a representative of the
American Trucking Associations; and a university
professor who also acted as the report writer. These
scan members reflected different modal interests
and expertise in intermodal freight transportation,
trucking, transportation policy and planning, and
transportation system operations.
The scan team met with government officials at the
national, provincial, and metropolitan levels; port
authorities and terminal operators; U.S. shippers
and retailers; logistics and warehousing companies;
and research organizations. Although most
of the team's visits were to specific organizations,
meetings were also held under the auspices of
the local American Chambers of Commerce in
Shanghai and Hong Kong that provided an
opportunity to meet with representatives of many
shipper, carrier, and trade organizations.
General Observations
The scan team made numerous observations about
the way China has provided transportation infrastructure
in support of its impressive economic
growth. These observations are presented below.
However, several major takeaways from this scan
provide important lessons to the United States:
- Given the global market and supply chain, what
happens in China does affect the U.S., State, and
local economies. Everyone is part of a global
economy; flows of people and goods do not stop
at jurisdictional boundaries. Although this scan
focused on China, in reality the transportation
system of each country is part of a global transportation
network and should be viewed that way.
It is surely the way the companies that move
freight view it.
- Although the Chinese system of governance is
very different from the United States, several
characteristics of the system are noteworthy:
- National, provincial, and metropolitan transportation
policy is closely coordinated among the
three levels and is linked to other policy goals,
the most prominent ones being economic
development and what the Chinese call
"social harmony."
- This strong linkage often results in a unified
vision of what is necessary in the transport
sector to achieve policy goals.
- The Chinese government at all levels targets
investment on those components of the
transportation system that best advance
national goals. As a result, the evolving
Chinese transportation system is focused
on excelling in markets dominated by
international trade.
- The expanding opportunities for investment in
China have resulted in many public-private
joint ventures for transportation projects. However, in most cases, the government
retains majority control in the joint venture.
It always has the majority say.
- On intermodal access to the maritime ports, the
scan team did not find new or different operational
technology than is used in the United States or
European Union. There were, however, significant
differences in port operating rules because of
different labor conditions and the focus on
competing in a global market.
The following observations from the scan are
organized in four categories: China's economic
growth and driving forces; transportation
infrastructure development; governmental
structure, decisionmaking, and analysis; and
global shipper and carrier perceptions.
China's Economic Growth and Driving Forces
- China's economic growth over the past 10 years
has been dramatic. Both government officials and
private sector representatives expect this growth
to continue in the foreseeable future at or near its
current rate of about 10 percent per annum.
- Although the national and local governments
have invested heavily in infrastructure, much
of the recent economic growth has been fueled
by private investment. As different sectors of
the economy have been opened to foreign
investment, joint ventures and other financial
partnerships have provided an institutional
framework for expansion of the transportation
infrastructure and the economy. Even with this
foreign investment, the government is still in a
dominant position on investing in the transport
sector, especially in such areas as the national
rail system.
- The economic expansion of China started in the
south (Pearl River Delta), moved north along the
coastal area based on national economic policy,
and is now pushing west in accordance with the
"Go West" national government campaign. This
campaign has significant implications to supply
chain logistics costs and to the efficiency of the
Chinese transportation system in moving
exports to the coastal ports.
- Much of China's economic expansion has
occurred in urban areas where the population
provides the labor force. The consequence of
such large urban concentrations is that the
central government pays particular attention to
and provides the resources to make sure that the
basic needs of these populations are met (social
harmony). From a transportation perspective,
the consequence of this policy focus is that
passenger transportation often receives priority
over freight movement (although in port cities
freight movement often receives close attention
from transportation officials), especially in peak
holiday seasons.
- Although it appears that economic development
is still the primary goal of governmental policy,
additional goals and performance measures
relating to environmental quality and energy
consumption have been added to the national
agenda.
Transportation Infrastructure Development and Operations
- Recognizing the vital role that transportation
plays in meeting its goal of continued economic
growth, China is investing heavily in transport
infrastructure, an investment estimated at more
than 9 percent of the country's gross domestic
product (GDP). This investment comes from both
public and private (joint venture) funds.
- Substantial levels of private capital are being
invested, in some cases with low expectations
of rapid return on investment. In other words,
investors are willing to accept lower immediate
returns in exchange for longer term benefits.
Over the past several years, this investment has
occurred primarily in seaports, highways, airports,
and logistics parks. Private investment
in rail infrastructure and intermodal terminals
has had limited success, although some recent
agreements suggest that the rail sector will
also see private investment.
- Coastal and river shipping is a significant
component of China's intermodal transportation
system. In some port markets, as much as 35
percent of the containers arriving for export
do so by barge.
- The central government's "Go West" policy
has shifted investment attention to inland
transportation and the challenges facing such transportation, especially the connections to the
major international ports.
- China's intermodal rail service faces significant
challenges. The movement of containers receives
low in priority on China's rail network, following
military, passenger, energy (coal), and food
movements. About 12,000 kilometers (7,456
miles) of passenger-only track are being built to
separate passenger and freight movements. This
will free up the existing combined-use track for
freight movements. A goal of 10 million 20-foot
equivalent units (TEUs) carried by rail (now less
than 3 million) has been established for China's
current 5-year planning period.
- The Chinese central government has encouraged
joint ventures to finance the national
expressway system, the intent of which is to
stretch government funds to support a variety
of new modal investments. Consideration is also
being given in some locales to how tolls can
be used to influence truck routing
- Toll rates are comparable to those found in
the United States and Europe, but the Chinese
believe this does not reflect the economic reality
of travelers in China, where per capita GDP is
much lower. In some cases, the Chinese are
trying to renegotiate concession agreements
to allow lower toll rates, offsetting lower toll
revenues with longer concession time periods
(from 30 to 50 years).
- The national expressway plan is centered
primarily on three major economic and political
centers: Beijing, Shanghai, and the Pearl River
Delta. In essence, the national expressway
system and the national rail network will be the
major means of connection between the political
and economic centers of the country, reinforcing
their importance in the economic future of China.
Intermodal connection has been an important
consideration in network design.
- Trucking is the predominant means of moving
containers to and from the ports, especially
in the river delta manufacturing regions. The
trucking industry consists mainly of small
businesses (one to three trucks), which makes
its contribution to China's economic growth
even more impressive. Enforcement of the
standard vehicle configuration regulation is
weak, and integration of technology into
trucking operations appears to be limited.
- Given the relatively large number of trucking
businesses found in China and the intense
competition for freight movements, it was not
surprising to find that oversized and overweight
trucks have become an emerging and important
concern for transportation officials. It appears
that Chinese transportation and enforcement
organizations have just recently begun to
implement national and provincial weight
enforcement programs.
- Chinese port productivity is the best in the world.
Chinese ports operate 24 hours a day, 7 days a
week, 365 days a year. Operational strategies
are impressive—cranes that lift four TEUs, 20- to
30-minute truck turns, nine cranes working one
ship, etc. New ports are being developed and the
capacity of existing ports is being expanded
rapidly.
- Given the significant level of trade to the United
States and current U.S. legislation, security was
a growing concern to port terminal operators.
The relatively new infrastructure at China's
ports allows terminal operators to build
security measures into terminal operations,
especially using technologies to screen
outbound containers.
- China has not progressed to the point of
systematically managing its transportation
infrastructure; it is still in the "build" mode.
The scan team saw little evidence that this
infrastructure was being designed with system
management challenges in mind, such as truck
weight and size enforcement. Nevertheless, in
a few of the more mature areas experiencing
significant congestion, transportation officials
indicated a need to begin paying serious
attention to system management.
- Intermodal connectivity and landside access to
Chinese ports are not approached differently or
in a more sophisticated way than in the United
States or European Union. Many new port
facilities are located in large urban areas, yet
the access to and from these ports involves
traversing mixed-use roadways that will, in the
future, present the same challenges now faced
in the United States and European Union.
- Rail access to maritime port facilities is not being
built consistently into new port design. With the
exception of the Port of Qingdao, which has
no river access and is being looked at as one
terminus of a rail-land bridge from Asia to the
European Union and Russia, no other port
facility was being built with on-dock rail. This is
partly due to a perception by shippers and ocean
carriers that container movement receives low
priority on the Chinese freight rail network,
which results in little pressure to improve or
provide rail access to the ports.
Governmental Structure, Decisionmaking,and Analysis
- China's policymaking and implementation
process identifies clearly specified national
goals with corresponding performance metrics.
However, local officials have leeway under this
national policy to implement projects that also
meet their local objectives. A national 5-year
plan provides policy direction on what will be
emphasized during the plan's timeframe
(China is in its 11th 5-year plan)
- National transportation agencies have different
modal responsibilities (e.g., Ministry of
Communications*, Ministry of Railways, Ministry
of Construction, Central Administration of Civil
Aviation). Because the performance of government
officials is measured by results, attention
is paid to measures of progress. National data
on overall modal performance and the state of
the economy are collected and analyzed. Data
analysis is used to determine the extent to
which goals are being met at different levels
of government. Some officials referred to
this as "results-oriented planning."
- The performance of local officials and governments
is measured against national goals.
For example, many noted that the most
important metric for local officials is the degree
to which economic growth occurs during their
tenure, defined primarily as job growth. China's
tax policy also supports this goal because the
tax revenue from the economic activity in a
province stays, for the most part, in the
province.
- Although this scan did not conduct a systematic
assessment of the capability of municipal
government agencies to plan and provide for
transportation infrastructure and services,
every meeting with local officials included
the staff members responsible for each mode.
In other words, all of the modes were located
in one agency, which encouraged the
adoption of a multimodal systems perspective
when looking at regional transportation
investment.
- In most cases, there was little evidence that
carriers or shippers were asked for advice on
national strategic transportation plans or investments.
However, at the provincial or regional
level, the inclusion of the private sector in tactical
investment decisions was evident in the number
of public-private partnerships.
- Port development plans considered modal
access strategies as part of the planning process,
but multimodal port access did not always result
(note comment 15 in the previous section about
rail access to ports). The interesting aspect of
this port planning was that the boundary of such
studies encompassed a much larger area than
that adjacent to the port itself. Access was a key
concern.
- Project development occurs much faster in
China than in the United States. Transportation
projects are viewed as a priority for economic
development, so they move forward rapidly.
- In keeping with the national policy of social
harmony, government officials are concerned
about the negative impacts of transportation
facility operations and expansion on local
communities. They provided examples of
efforts to mitigate the impact when community
displacement does occur.
- Hong Kong's role in the competitive market
of the Pearl River Delta is evolving. New ports
nearby (along with dredging in the river to
allow access to these ports for bigger ships), as
well as new manufacturing development on the
west bank of the Pearl River, will likely cause a
shift in container exports to other ports. It
remains to be seen how the market will adjust
to these changing conditions, but it appears
that Hong Kong's relative position in global
container flows could evolve in a different
direction in the future.
Shipper and Carrier Perceptions
- Many of the international ocean carriers and
shippers the team met during this scan view
the serious constraint in international trade
and supply chain efficiency as being on the
receiving end, in Europe and the United States.
The prevalent perception is that terminal
throughput in the United States and European
Union is limited by terminal operational limitations,
landside access capacity, growing road
congestion, and protracted decisionmaking
processes.
- Shippers and carriers believe that the effect
of a widened Panama Canal and increased
transits through the Suez Canal will likely be
more shipments heading to east coast U.S.
ports, but that the west coast U.S. ports
will still be the major destination for most
transpacific containers.
- Several shippers and carriers identified the
"bunching" of vessel departures from Chinese
ports (because of when merchandise arrives
at the ports and when it is needed in the U.S.
market) as the cause of a significant peaking
problem. It was observed that a peaking in
departures from China usually results in a
peaking in arrivals at U.S. ports, especially
Los Angeles-Long Beach in California. Several
shippers and carriers believe that this peaking
phenomenon could be remedied by working
with retailers, shippers, and manufacturers.
Lessons for the United States
The lessons learned from this scan are organized in
two major categories: consequences to the United
States and its transportation system, and different
approaches to planning and project development
in support of a growing economy.
Consequences to the United States and the U.S. Transportation System
- China competes as a nation. For the United
States to remain competitive globally, it needs
to invest in transportation infrastructure, apply
new system management technologies, and
consider institutional change in how it identifies,
funds, operates, and makes key infrastructure
improvements to key elements of the
national transportation system.
- Trade from China will put increasing pressure
on east coast ports. With new service routes
through the Suez and Panama Canals, States
on the east coast will experience increasing
demands on their transportation systems.
- Given the navigable draft and terminal capacity
of most U.S. ports, the largest container ships
might not be providing service to the United
States. This means most U.S. ports will be
served by vessels carrying less than or equal
to 10,000 TEUs.
- Similar to what teams observed during intermodal
freight scans in Europe and Latin America,
the difference in port efficiency between China
and the United States is dramatic. If U.S. ports
are unable to expand because of community
concerns or geographic limitations, maximizing
the use of existing capacity and improving port
throughput are imperative to handle increasing
container flows.
- The United States can learn a lot from China
on using natural geography to the maximum
extent, particularly in the use of barge and
coastal shipping as access modes to major
ports. In China, the Pearl and Yangtze
River ports are being developed to act as
transshipment ports, and new manufacturing
capacity is being developed and located to
take advantage of river transport.
- Freight bottlenecks are viewed as a drain on
transportation system and economic productivity.
This is a perspective the United States should
adopt as well. Solving these bottlenecks involves
more than just expanding physical capacity. It
also requires using technology and operational
strategies.
- Chinese officials have recognized that freightoriented
transportation investments, especially ports, are an important part of the nation's
economic development. Accordingly, Chinese
transportation agencies have invested heavily
in improving port capacity.
- The United States is fortunate to have a much
more developed rail network, which in many
cases provides on-dock service to port terminals.
This is a significant advantage to U.S. trade
flows, and one that needs to be nurtured.
- Given China's experience with oversize and
overweight vehicles and the corresponding
infrastructure damage, it becomes even more
apparent that the United States should ensure
that its commercial motor vehicle size and
weight program continues to advance and is
provided adequate resources.
- One challenge facing west coast ports is the
bunching of vessel departures from China that
results in vessels arriving at about the same time
in the United States. If vessel bunching could be
reduced, this could significantly benefit both U.S.
and Chinese ports. In discussions with shippers
and carriers in China, the scan team heard
optimism that this could in fact occur.
How the Chinese Invest In and Operate
Their Transportation System to Support
a Growing Economy
- China has a national transportation investment
policy that is closely linked to its trade and
economic policy. National transportation investment
appears to focus on two major goals
(besides military defense): strategies to foster
social harmony among Chinese citizens and
strategies to support economic growth, with
the second goal supporting the first. The United
States would benefit from adopting a national
transportation investment policy that supports
the nation's economic health.
- The Chinese central planning function is not a
model that would work in the United States.
However, the concept of locally executing a
strategic network focused on national interests
with national financing support (along the lines
of the initial effort to build the U.S. Interstate
Highway System) is worth considering. Such a
system should use performance measures to
monitor progress in developing and operating
key elements of the national transportation
system.
- Many of the assets that work in tandem with the
Chinese transportation system (port terminal
development, logistics parks, etc.) are partially
funded through private investment. In some
cases, the return on this investment is not likely
to be realized in the short term. Instead, it
will take years for the investment to start
producing net gains. However, companies
made it clear that because the Chinese can
make infrastructure investment decisions
quickly and show progress toward
improvement, they are willing to invest.
This suggests that if transportation agencies in
the United States are interested in encouraging
more private investment in transportation
facilities, they need to give greater attention to
timely public sector decisionmaking. Agencies
simply need to get to the decision point earlier.
- The primary instrument of privatization in China
is the joint venture. In almost all cases, private
investors do not get a majority share of the
investment (the exception being port terminals).
Government agencies or state-owned enterprises
retain at least 51 percent control.
- Chinese planning for intermodal centers, and
indeed for regional transportation networks,
adopts a systems perspective on performance
and investment. In the United States, several
multistate coalitions seek to coordinate multi-jurisdictional
activity. To achieve systems-level
coordination, more efforts along these lines
will be necessary.
- Air cargo is the fastest growing segment of
freight movement in China. While it is still
only a small percentage of total tonnage, the
implication to the U.S. transportation system
of this growth in both air cargo hubs and belly
freight is new stress on the transportation
network at already-overcrowded U.S. airports.
- National data collection in China provides a
springboard for national transportation planning,
investment, and performance evaluation. U.S.
freight data systems should not only be continued,
but expanded to provide the information
needed for optimal transportation investment
decisionmaking, especially given the important role that freight plays in the economic health
of the Nation.
- Finally, it was noteworthy that the Chinese
transportation officials who met with the scan
team were very high quality professionals and
most often quite young. They were expert in the
use of data and data analysis and knowledgeable
about how their respective transportation
systems fit into a much larger transportation
systems perspective.
Implementation Strategies, Dissemination, and Recommendations
The scan team developed recommendations for
implementing the results of this scan. These
related to dissemination, policy development,
outreach, and research and data analysis activities.
For example, the scan team recommends a wakeup
call on the need for the United States to invest
in transportation infrastructure with a more national
perspective if it is to stay competitive in a global
market. This first, and perhaps most important,
recommendation is to develop a "Reveille for
Refocus" on a fresh, strategic, national perspective
for U.S. transportation and elected officials. This
document would draw a sharp focus on the importance
of the transportation-economic integration
so evident in China. More discussion of the
implementation plan is in the report.
* In April 2008, the Chinese government created a Ministry of Transportation that incorporates the former Ministry of Communications. Aviation, maritime, and highways are among the functions in the Ministry of Transportation. The Ministry of Railways remains separate. The result is a transportation policy and development entity similar in structure to the U.S. Department of Transportation.