ADB to Develop Green Smart Transport and Logistics Services in Shaanxi, PRC

News Release | 9 December 2020

MANILA, PHILIPPINES (9 December 2020) — The Asian Development Bank (ADB) has approved a $200 million loan to support Shaanxi Province in the People’s Republic of China (PRC) to reduce greenhouse gas (GHG) emissions by improving operations efficiency and building green facilities, and enhancing overall safety in the transport and logistics sector.

“The PRC is the world’s largest emitter of greenhouse gases, and mitigating these emissions requires large-scale integration of low-carbon development initiatives,” said ADB Senior Infrastructure Specialist Arun Ramamurthy. “The project will support Shaanxi Province in developing and demonstrating climate-resilient and green intelligent transport, logistics, and supply chain management ecosystems for low-carbon growth.”

The transport and logistics sector in Shaanxi Province plays an important and strategic role in supporting provincial and national economic activity. However, it is a rapidly growing source of GHG emissions and other air pollution. Carbon dioxide equivalent emissions from the transport sector were 827.9 million tons (8.6% of national emissions) in 2014. In the last decade, this share has been increasing at an average annual rate of 2.8%.

The project will reduce pollution and greenhouse gas emissions by developing infrastructure that lowers congestion, adopts digital technologies, enhances the efficiency of logistics and supply chain systems, and improves safety in transport and logistics movement. It will also support private sector development through a financial intermediation loan to facilitate the adoption of efficient technologies by small and medium-sized enterprises (SMEs) in logistics.

The project will involve developing low-carbon and intelligent logistics facilities and transport systems in three strategic locations. In the three logistics parks—the Hi-Tech City Park in Xi’an, Civilian Aerospace Park in Xi’an, and Yan’an Green Urban District Demonstration Area—the project will introduce efficient cold storage warehouses with high-level technology inventory management systems and modern sanitary and phytosanitary measures. Further, the project will establish two multimodal systems and warehouse facilities in Xi’an and Ankang.

An integrated information and communications technology system will enhance the government’s capacity to manage real-time traffic monitoring, optimize route planning, and enable sharing of operational data between the logistics providers. To promote knowledge on green intelligent transport and logistics management, the project will roll out training programs and communications through workshops, publications, and expos.

Total project cost is $804.08 million, with $200 million cofinancing from German development cooperation through KfW and $404.08 million counterpart financing from the PRC government. It is expected to be completed in January 2027.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.