At the Fourth Session of the Tenth People's Congress of Shandong Province this year, several industry and foreign representatives called for accelerating railway construction in the province to lower chemical logistics costs and strengthen the competitiveness of Shandong’s chemical industry. As China’s largest chemical-producing province, Shandong has long struggled with high transportation costs due to underdeveloped railway infrastructure.
Shandong Rising Chemical Group, located in Dongping County, is planning to build a 1 million-ton-per-year urea production base. The company requires 1 million tons of raw coal annually, and the total material flow is expected to reach 12 million tons per year. However, without a local railway, all transport relies on trucks, leading to massive expenses. According to Meng Guangyin, deputy of the Provincial People’s Congress and chairman of Rising Group, the company spends 600 million yuan annually on transportation. This cost significantly reduces profits, with an estimated loss of 600 million yuan, including 100 million yuan in value-added tax and 150 million yuan in income tax. Meng urged the government to prioritize railway construction in Dongping to turn its resource advantages into economic benefits.
The issue of high transportation costs also hinders Binzhou’s development, especially in the Yellow River Delta region. The five counties north of the river have lacked railway access for years, affecting the transport of key materials like salt, coal, and oil. Binzhou Binhua Group alone spends over 150 million yuan annually on freight. During the "11th Five-Year Plan" period, the city is expected to handle more than 36 million tons of materials yearly. The Binzhou delegation proposed that the government provide strong financial 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 output. With nearly 100 million tons of goods transported annually, the city faces significant logistical challenges. Mayor Liu Yuxiang and Jiang Wei, chairman of Zaozhuang Mining Group, along with 13 National People’s Congress representatives, called for faster progress on the Zalin Railway. Once completed, the line will connect Guanqiao Station to Rizhao Port, greatly improving transport efficiency, reducing costs, and boosting regional economic growth.
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