Highway Fees to be Lowered This Year

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The Chinese highway system is second only to the USA’s in terms of size and it is only getting bigger, the roads are largely used by truckers to take goods in and out of cities, due to China’s large public rail system that mixes bullet trains with old style trains its easier and more comfortable for travelers to take to the rail roads rather than drive long distance. Recent strikes and demonstrations by truckers at the Shanghai Port cast nationwide media attention on the issue. Haulage companies and drivers have been severely affected by the rising price of fuel over the past few months which is cutting into their profits and pushing the price of goods up for consumers, one way that Central Government is moving to ease the pressure on haulage companies and regular drivers is to lower or cancel highway fees in certain areas.

One of the major policies in the early development of China’s road systems was to take out loans from provincial banks to build highways, and then use the collected tolls fees to repay the loan. China’s highway system is made up of Tier One roads and Tier Two roads, 61% of Tier One roads rely solely on collecting road tolls to repay development costs, whilst 42% of second tier roads rely on tolls, other methods for generating revenue are used, such as service stations and renting land to gasoline service stations.

The plan to lower highway fees is still being debated by the central government, although groups such as the China Logistics Development Meeting are lobbying hard to lower the costs which will aid its member drivers and companies.