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Zhejiang cuts logistics costs to boost economy

By Chen Ye | chinadaily.com.cn | Updated: 2025-04-02 20:43
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A photo shows parts of flyovers in Hangzhou, Zhejiang province. [Photo/VCG]

Zhejiang province has taken action to reduce logistics costs to enhance economic efficiency and drive broader societal benefits.

Authorities plan to allocate over 666 hectares of storage and logistics land in the next three years as part of a comprehensive action plan for reducing the logistics costs unveiled in Hangzhou on Wednesday.

"The province has already cut its logistics cost-to-GDP ratio from 15.72 percent in 2015 to 13.52 percent in 2024, 0.58 percentage points lower than the national average," said Zhang Shuming, deputy head of the Zhejiang Provincial Development and Reform Commission.

This reduction is no small amount, with a single percentage point decrease potentially translating to over 90 billion yuan in logistics cost savings, based on the province's 2024 GDP of 901.31 billion yuan.

According to the plan, Zhejiang is set to enhance its logistic network by integrating transportation systems, optimizing freight structures and streamlining road, rail and waterway connections. "We aim to increase railway and waterway freight volume by 8 percent and 10 percent, respectively, by 2027 compared to 2023," Zhang added.

The plan also targets cost reduction in bulk, cross-border, manufacturing and cold-chain logistics.

Zhejiang will leverage digital intelligence, green initiatives and standardization to cut logistic costs. Key measures include developing warehousing, managing port scheduling with AI, promoting recyclable packaging and advancing cross-provincial logistics standardization in the Yangtze River Delta region.

"We will ensure the action plan's effective implementation, creating a supportive market and policy environment to reduce overall logistics costs," Zhang said.

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