At the Fourth Session of the Tenth People's Congress of Shandong Province this year, industry and foreign representatives called for accelerating railway construction in the province to lower chemical logistics costs and boost the competitiveness of Shandong’s chemical sector. As China’s largest chemical-producing province, Shandong has long struggled with high transportation costs due to insufficient railway infrastructure.
Shandong Rising Chemical Group, based in Dongping County, is planning a 1 million-ton-per-year urea production base. The company requires 1 million tons of coal annually, with a total material flow of 12 million tons per year. However, lacking a direct railway connection, it relies on road transport, leading to annual transportation costs of 600 million yuan. These high expenses force the company to reduce product prices, directly cutting profits by 600 million yuan each year. Additionally, the company pays around 100 million yuan in value-added tax and 150 million yuan in income tax. Meng Guangyin, a member of the Shandong Provincial People’s Congress and chairman of Rising Group, urged the government to prioritize railway development in Dongping, aiming to turn the region’s resource advantages into economic benefits.
The issue of high transportation costs also hinders Binzhou’s growth, particularly in the Yellow River Delta. The five counties north of the river have lacked railway support for years, affecting the transport of key raw materials like salt, coal, and oil. For example, Binzhou Binhua Group spends over 150 million yuan annually on freight. During the "Eleventh Five-Year Plan" period, the city is expected to handle an average of 36 million tons of materials per year. The Binzhou delegation proposed that the government provide strong financial and policy support to expedite the construction of the Bin-Kang Railway.
Zaozhuang City, a major coal producer in East China and one of the top ten coal export bases in the country, currently ships 60% of its coal output. With nearly 100 million tons of goods needing to be transported annually, Zaozhuang Mayor Liu Yuxiang and Zaozhuang Mining Group Chairman Jiang Wei, along with 13 national deputies, proposed accelerating the construction of the Zalin Railway. This line will connect Guanqiao Station to Rizhao Port, significantly improving transportation capacity, reducing costs, and enhancing efficiency. The project is seen as crucial for boosting regional economic development and supporting the coal industry’s expansion.
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