Breakthrough in Railway Freight Transportation Optimizes Logistics Costs Against Waterway Competition

Zhongtian Iron and Steel Group Co., Ltd. has recently transitioned from waterway to railway transportation, successfully dispatching 42 freight cars to Ningbo. The new pricing policy by China Railway Corporation, which charges based on actual weight, has provided significant logistics cost advantages for the company. The Nanjing Freight Center has offered customized solutions, reducing overall expenses. The high timeliness and stability of railway transport have led Zhongtian Steel to shift more cargo to rail, which is expected to enhance its overall logistics management efficiency.
Breakthrough in Railway Freight Transportation Optimizes Logistics Costs Against Waterway Competition

In accordance with Article 10 of China's Railway Law, which encourages railway development and provides special support for transporting specific commodities like steel and non-ferrous metals, Zhongtian Steel Group Co., Ltd. recently achieved a significant logistics milestone. The company successfully dispatched 42 freight trains from Qishuyan Yard to Ningbo, marking a major competitive advance for China's railway sector against traditional water transport.

The Implementation Regulations of the Railway Transport Contract Law, Chapter 4, stipulate that freight charges should be calculated based on actual cargo weight. China State Railway Group has issued new policies aligning steel and non-ferrous metal transport fees with this weight-based standard, providing Zhongtian Steel and similar enterprises with substantial cost advantages.

Nanjing Freight Center developed a comprehensive logistics plan for Zhongtian Steel under Article 8 of the Goods Transport and Storage Liability Regulations. This plan clarifies responsibilities for transport, loading/unloading, and storage operations while reducing overall logistics expenses. The center's additional warehousing services, compliant with Article 5 of the Storage Law, ensure cargo security and management efficiency. Company executives noted that while water transport previously required week-long shipments, rail now delivers goods within 1-2 days while avoiding weather-related delays common in maritime shipping.

Pursuant to Section 3 of the National Railway Transport Market Classification Management Measures, which mandates customer feedback mechanisms for service improvement, Zhongtian Steel plans to transition more shipments from water to rail for the Wenzhou and Hangzhou routes. This strategic shift aligns with the Modern Logistics Development Plan's efficiency goals, offering more competitive logistics solutions.

Zhongtian Steel's rail transport initiative not only complies with national regulations but represents a proactive market response. As this model expands, industry analysts anticipate significant logistics efficiency gains that will stimulate broader transportation sector development and economic growth.