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Mar 4, 2015

* China - TRANSPORT HURDLES: Moving goods inside, “... can still seem like the Wild West”

* California - Interior China shippers face transport hurdles to tap cheaper labor

-- The challenges are abundant for second-tier suppliers moving west into China’s interior, a massive region rife with cheap labor but lacking necessary infrastructure and reliable transportation... The only way to confront those challenges is to make a clear appraisal of the transportation environment, a panel of logistics experts said at the 15th annual TPM Conference in Long Beach, California... The China's Go West policy, officially known as the Western Development Program, covers the municipality of Chongqing and the provinces of Gansu, Guizhou, Qinghai, Shaanxi, Sichuan and Yunnan and the autonomous regions of Guangxi, Inner Mongolia, Ningxia, Tibet and Xinjiang. The initiative, launched in 2001, is an effort to not only develop China’s long-struggling interior, but also to maintain China’s global manufacturing edge by tapping lower labor costs in the interior... Despite robust government-funded infrastructure investments in the interior, moving goods “can still seem like the Wild West,” Choy said... Two-thirds of the world’s toll roads are in China, where tolls can be as high as $200 per trip. Moreover, 90 percent of all freight is brokered, commonly posted on outdoor chalkboards and often illegally overloaded... But Western manufacturers considering the move west, don’t necessarily know these conditions, Choy said. They know labor is cheap and they have the Chinese government’s support, he said... The great distances from factories interior to ports can be a surprise of their own to shippers not familiar with China's geography... (Photo: A FAW semi-trailer loaded truck in China)  - LONG BEACH,, USA -JOC, by Reynolds Hutchins -Mar 02, 2015

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