PRC anchors the eastern end of all CAREC corridors, serving as a critical origin and transit hub for goods moving westward to Central Asia, the Caucasus, and Europe. Key BCPs such as Alashankou, Khorgos, and Erenhot facilitate massive containerized and bulk cargo flows into the region. Its key China Railway Express (CRE) initiative moved 1.9 million TEUs via 17,523 block trains in 2023, connecting more than 110 Chinese cities to 200 European and Asian destinations. Inland logistics hubs in Xi’an, Chongqing, and Zhengzhou play a key role in CRE’s container block train operations.11
PRC’s trade facilitation performance shows marked improvements across all TFIs. Rail TFI1 dropped by 59%, and costs fell significantly due to streamlined customs, digital documentation, and the lifting of COVID-era restrictions. Road transport also saw a 41% drop in TFI3 and improved speed (SWD rose to 31.4 km/h). These gains reflect investments in automated border systems, modernized border-crossing facilities, and excellent road and rail transport infrastructure.
All-round Progress
Table 6.7: Trade Facilitation Indicators for the People’s Republic of China (2021–2023)
| Trade Facilitation Indicators | Road Transport | Rail Transport | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2022 | 2023 | % change | 2021 | 2022 | 2023 | % change | ||
| TFI1 | Time taken to clear a border-crossing point (hour) | 23.3 | 20.7 | 16.8 | -19.02% | 83.8 | 35.4 | 14.4 | -59.44% |
| Outbound | 27.8 | 20.8 | 17.0 | -18.65% | 64.7 | 33.9 | 14.0 | -58.61% | |
| Inbound | 2.3 | 0.3 | 2.1 | 614.29% | 149.6 | 53.7 | 16.3 | -69.68% | |
| TFI2 | Cost incurred at border-crossing clearance ($) | 1,219 | 638 | 357 | -44.09% | 137 | 120 | 90 | -25.36% |
| Outbound | 1,413 | 638 | 358 | -43.86% | 28 | 53 | 40 | -25.00% | |
| Inbound | 170 | – | 233 | – | 266 | 130 | 91 | -30.38% | |
| TFI3 | Cost incurred to travel a corridor section | 3,979 | 3,445 | 2,042 | -40.72% | 896 | 763 | 612 | -19.76% |
| ($, per 500 km, per 20-ton cargo) | |||||||||
| SWD | Speed to travel on CAREC Corridors (km/h) | 22.3 | 26.1 | 31.4 | 20.27% | 14.6 | 13.5 | 15.0 | 11.31% |
| SWOD | Speed without Delay (km/h) | 78.8 | 83.5 | 80.5 | -3.55% | 64.5 | 82.4 | 80.2 | -2.64% |
TFI1 trends in PRC show marked improvement over the three-year period, especially for rail transport. Road transport border clearance time declined from 23.28 hr in 2021 to 16.77 hr in 2023 (–19%). Outbound clearance time dropped by 39% over the period, while inbound time fluctuated, declining to 0.29 hr in 2022 and rebounding to 2.08 hr in 2023.
Box 6.2: Border-Crossing Process Simplification in the People’s Republic of China
PRC had instituted strict measures in border-crossing in 2020 following the COVID-19 pandemic. For crossing borders via roads, the transloading process was complicated by the prohibition of direct contact between the local and foreign drivers. A special zone manned by dedicated workers handled the transloading process between vehicles. This additional step was removed on 8 January 2023. As such, Kazakh drivers and Kazakh-registered trucks can drive straight to the temporary warehouses in Horgos (in PRC) and directly load the goods bound for Almaty. This helped to realize the steady improvement in TFI1, TFI2 and TFI3 for road transport over 2021–2023.
Source: CAREC Institute.
Rail transport saw a dramatic reduction in clearance times, from 83.84 hr in 2021 to just 14.37 hr in 2023 (–59.4%). This represents one of the most substantial improvements across CAREC corridors. Inbound rail clearance decreased even more significantly by nearly 70%, likely due to optimized transshipment procedures, digital integration at border-crossing points (BCPs), and enhanced cooperation with neighboring countries such as Kazakhstan and Mongolia.
TFI2 data for PRC also indicates encouraging progress. Road transport costs at border-crossings dropped from $1,219.33 in 2021 to $356.76 in 2023, a sharp 44% decline. While outbound cost decreased substantially, inbound cost rose in 2023, reaching $233.33 (from $0 in 2022), indicating a correction in pricing or changes in customs fee structures. For rail, costs decreased more modestly—down from $136.73 in 2021 to $89.92 in 2023 (–25%). The improvement reflects reduced clearance time, better infrastructure at dry ports, and possibly harmonization of rail handling fees with CAREC corridor partners.
Transport costs along CAREC corridors within China remain high but have shown marked reductions. Road transport costs per 500 km per 20-ton cargo fell by 41% from $3,979.20 in 2021 to $2,041.90 in 2023. This improvement may be attributed to infrastructure modernization, improved road quality, digital fleet management, and improved fuel efficiency. Rail transport corridor cost also dropped by 19.8% from $896.25 in 2021 to $612.32 in 2023, likely due to increasing container block train services, optimized route scheduling, and cost-sharing agreements under the Belt and Road Initiative.
Corridor speed performance indicators show mixed results. For road transport, SWD improved by 20.3% from 22.34 km/h in 2021 to 31.39 km/h in 2023, indicating fewer interruptions or faster customs and handling processes. However, Speed Without Delay (SWOD) slightly declined (–3.6%) over the period, suggesting that while delays have been reduced, average cruising speeds remain relatively stable.
Rail SWD increased slightly from 14.63 km/h to 15.01 km/h (+11.3%), showing modest progress in transit efficiency. SWOD, however, fell marginally (–2.6%), suggesting that while operational speeds are steady, bottlenecks exist, mostly at border interchange points where gauge changes or inspections are required.