China, People's Republic of: Chongqing Integrated Logistics Demonstration Project

Sovereign (Public) Project | 48024-002 Status: Active

The project will develop a modern and efficient multimodal logistics system in Chongqing. The outputs of the project will be (i) the Chongqing transportation logistics park, (ii) the Nanpeng logistics park, (iii) the Yangtze River inland waterway roll-on roll-off (Ro-Ro) operations, (iv) a logistics information system, and (v) institutional capacity building.

Project Details

Project Officer
Saxena, Sharad East Asia Department Request for information
Country
  • China, People's Republic of
Sector
  • Transport
 
Project Name Chongqing Integrated Logistics Demonstration Project
Project Number 48024-002
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3459-PRC: Chongqing Integrated Logistics Demonstration
Ordinary capital resources US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Transport - Multimodal logistics - Water transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description

The project will develop a modern and efficient multimodal logistics system in Chongqing. The outputs of the project will be (i) the Chongqing transportation logistics park, (ii) the Nanpeng logistics park, (iii) the Yangtze River inland waterway roll-on roll-off (Ro-Ro) operations, (iv) a logistics information system, and (v) institutional capacity building.

The proposed project is the third urban development project in Chongqing. Lessons from past and ongoing projects were incorporated in the project design, such as devolving more responsibilities to the implementing agency while strengthening its project management and financial management capacity. The proposed project will have demonstration features, namely integrated logistics parks, logistics information system, and inland waterway Ro-Ro operations. These features are all relatively new for logistics projects in the PRC, and their successful introduction through this project will offer opportunities for replication and scaling up. Integrated logistics functions and services in the new logistics parks will reduce wasteful freight movements. Logistics information services will enable logistics service providers, such as freight forwarding companies, to increase efficiency and reduce costs through better tracking and control over the supply chain. Ro-Ro operations will reduce the time and costs of transshipments, incentivizing freight movement on inland waterways.

The project is consistent with the plans of the Government of the PRC to develop the logistics sector and is in line with the Thirteenth Five-Year Plan. The project is also closely aligned with the government s priorities to develop the Yangtze River Economic Belt and the Silk Road Economic Belt initiative. The project's focus on logistics development is in line with the Sustainable Transport Initiative of the Asian Development Bank (ADB), which highlights logistics improvements as an important opportunity for sustainable transport operations. The project also draws on the recommendations of the previous ADB study on logistics development in the PRC.

Project Rationale and Linkage to Country/Regional Strategy

The logistics sector in the PRC, while stronger than many Asian countries, trails behind several developed nations. According to the World Bank's logistics performance index, the PRC has a global ranking of 27 (1 is the best and 160 is the worst). The PRC's ranking indicates a potential for improvement. On 11 June 2014, the State Council approved a plan to develop the logistics industry. This reaffirms the government's continued emphasis on improving and reforming the logistics sector, which is expected to continue during the Thirteenth Five-Year Plan of the PRC.

Existing logistics constraints. In 2015, Chongqing handled 1.1 billion tons of cargo at 24 locations within the inner city region and ring road in Chongqing. The movement of freight trucks in urban areas worsens traffic congestion, creates air pollution, and slows down the delivery time for goods. Moreover, most of these small logistics centers do not have enough parking spaces, resulting in large trucks being parked along the streets causing more traffic congestion. Since April 2014, the government has restricted the movement of big freight trucks in parts of the inner city during certain times of the day. These restrictions are expected to be further tightened to cope with growing traffic congestion. While this has provided some relief to the traffic congestion problem, the trucks idle just outside the inner city for several hours before they are allowed to enter, thus contributing to considerable air pollution. There is also a risk that the supply of daily commodities used by local residents may be affected. The government plans to create the new logistics parks beyond the inner ring road as a long-term solution to these problems. The existing logistics centers in the inner city would gradually be consolidated and transferred to the new logistics parks. The new parks would combine all of the logistics functions in one location which will eliminate unnecessary freight movements. The parks will also integrate the various transport modes such as railways, highways and inland waterway resulting in the development of an efficient multimodal logistics system. These improvements will reduce logistics costs, which in turn may result in lower prices of consumer goods.

Inland water transport. Chongqing is one of the most important inland ports in the PRC. The development of the Three Gorges Dam has increased the shipping capacity of the Yangtze River. The dam has made the river deeper and slower, allowing for easier navigation, especially upstream, for cargo and passenger vessels. The limiting factor for cargo, however, is the capacity of the ship lock across the 181 meter high dam. Presently, container ships have to wait for several days in order to pass the dam. To avoid delays, shippers unload goods upstream of the dam and often transfer goods to their final destination by road. The delays and costs of loading and unloading goods on vessels deter shippers from using inland waterway transport.

Logistics information system. The logistics information systems in the PRC are not fully developed. The existing systems provide information related to a single transport mode (e.g., tracking cargo moving on road transport), and there is little integration between different transport modes. Limited information is available in the public domain, making it difficult for transportation companies and freight forwarding companies to operate efficiently. Poor information-sharing creates a bottleneck for logistics and results in higher costs and delays. There is a need to develop an accessible information system that could be used by all the logistics centers and service providers. This will enable the logistics companies specializing in one or more aspects of logistic operations to work seamlessly together in a more efficient and cost effective manner.

Impact Logistics services in the Yangtze River Economic Development Belt and Silk Road Economic Belt region improved
Project Outcome
Description of Outcome Efficient and integrated multimodal logistics system in Chongqing demonstrated
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Chongqing transportation logistics park developed

Nanpeng logistics park constructed

Yangtze River inland waterway Ro-Ro transport demonstrated

Logistics information system established

Institutional capacity strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is category B for environment. A consolidated initial environmental examination and an environmental management plan (EMP) that cover all project components have been prepared. These documents comply with the PRC's regulatory requirements and ADB's Safeguard Policy Statement (2009), and have been disclosed on the ADB website. Public consultations were carried out to inform the project design and environmental assessment process and will continue during project implementation. The EMP outlines potential impacts, mitigation and monitoring measures, institutional arrangements, training requirements and an implementation budget of 0.2% of the total project budget. Capacity development and institutional strengthening will be provided to minimize environmental risks. Environmental complaints will be handled through a project safeguards grievance redress mechanism.
Involuntary Resettlement The project is category A for involuntary resettlement. A resettlement plan is prepared for the Chongqing transportation logistics park component. Due diligence has also been conducted for the Nanpeng Site (already cleared prior to the proposed project). The due diligence report was prepared which includes some actions to address remaining resettlement issues.
Indigenous Peoples Indigenous peoples safeguard requirements are not triggered (category C) because no ethnic minorities will be affected by any project activities.
Stakeholder Communication, Participation, and Consultation
During Project Design The project will have a consultation and participation strategy to ensure meaningful consultation with all stakeholders. The consultation and participation strategy will ensure timely information to communities, project affected households, and all relevant agencies. Modes of consultation and participation will include organizing public meetings, focus groups, and such other modes of direct consultation with affected communities and affected households.
During Project Implementation The executing and implementing agency, with support of technical consultants, will undertake consultations with key stakeholders.
Business Opportunities
Consulting Services All consultant services will be recruited using quality and cost-based selection in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time), using the default ratio of 80% for technical proposal and 20% for financial proposal.
Procurement All procurement to be financed under the ADB loan will be carried out in accordance with ADB's Procurement Guidelines (2013, as amended from time to time).
Responsible ADB Officer Saxena, Sharad
Responsible ADB Department East Asia Department
Responsible ADB Division Transport and Communications Division, EARD
Executing Agencies
Chongqing Municipal Government
[email protected]
Room 305, Jianfa Plaza, Honghuxilu Road,
Yubei District, Chongqing, PRC 401121
Timetable
Concept Clearance 17 Jul 2014
Fact Finding 22 Sep 2015 to 29 Sep 2015
MRM 02 Dec 2015
Approval 14 Nov 2016
Last Review Mission -
Last PDS Update 28 Mar 2017

Loan 3459-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Nov 2016 05 Jun 2017 15 Aug 2017 31 Mar 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 427.79 Cumulative Contract Awards
ADB 150.00 14 Nov 2016 0.02 0.00 0%
Counterpart 277.79 Cumulative Disbursements
Cofinancing 0.00 14 Nov 2016 0.00 0.00 0%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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