China's transport structure plan to effect tire industry

Recently, China State Council released three - year (2018 - 2020) plan to optimize Chinese transportation structure.

Tireworld.com.cn found that road freight was one of reform key points. Analysts said it would make deep influence on truck tire sale.

Road freight dove

The plan said bulk cargo would be mainly transported by railway or waterway during 2018 to 2020. The plan also aims to lift 1.1 billion tons of railway freight volume and 500 million waterway freight by 2020, compared to in 2017. At the same time, it would cut 440 million tons of bulk cargo in coastal ports to be transported via roadway. 

Industrial analysts said roadway freight reduce means heavy truck would not frequently used in long - /middle - distance transportation, which will further affect on truck tires' sales. 

Shrinkage demand of full-steel radial truck tire is a trend all over the world, and also repeats past way that developed countries experienced. 

Going first in Beijing, Tianjin and Hebei Province

The plan said the main adjustment areas are Beijing, Hebei and surrounding area, Yangtze River Delta Region, and The Fenhe&Weihe Plain. Especially, Beijing, Hebei and surrounding area would be built up a demonstration area of Chinese transportation structure adjustment plan in 2020.

By the end of 2018, costal ports including Bahai Rim, Shandong Province and the Yangtze River Delta Area and Tangshan Port, Huangye Port would be all transported by railway or waterway.