Challenges for container river services on the Yangtze River: A case study for Chongqing

Abstract

China plays an increasingly important role on the international economic scene and in global supply chains. Initially only coastal regions participated in global supply chains, but in recent years comparative cost advantages have led to an increased participation of inland destinations in China’s economic development. The growth of some inland regions has urged logistics players to revise and reconfigure their extensive logistics networks. This has been particularly the case in the Yangtze region. Upstream cities such as Chongqing are emerging as potential important production centres for the international markets.This paper discusses the challenges for container barge services on the Yangtze River to Chongqing. It is argued that a further strengthening of the global market position of Chongqing and other upstream locations demands further improvements in transport-related and logistical cost control and reliability. The performance of container river services on the Yangtze River is crucial for upstream economic regions to take part in world trade. The paper analyzes the costs aspects linked to transporting goods to the world markets and makes a comparison to gateway region Shanghai.