Is China’s rail freight rate cut for coal working? Report

Insight 23 July 2019

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Report summary

China wants more coal to be carried by rail rather than road transport, to help reduce pollution. However, year-to-date coal freight in 2019 has fallen short of the government’s expectation. As such, freight rates have been cut on China’s coal-dedicated railway lines to alleviate cost pressure and encourage more coal to be transported by rail. Wood Mackenzie recently visited several railway stations in key coal-producing regions to find out: Why coal producers and traders have less enthusiasm to transport coal to Bohai Rim ports. The impact of the recent freight rate cuts.