Why a Major Fuyang Enterprise Valued at Billions Made This Strategic Logistics Choice

Deep News
07/09

The city of Fuyang is becoming an increasingly cost-effective hub for logistics operations. This year, with the stable operation of Phase I of the Anhui (Fuyang) Railway International Logistics Port, more companies within the Fuyang metropolitan area are reaping significant benefits. Shipping goods from this port can reduce transportation time to the Yangtze River Delta ports by up to 40% and cut logistics costs by over 65%.

From formulating and issuing a task list aimed at reducing overall societal logistics costs to partnering with China Railway Shanghai Group to invest 6 billion yuan in building the Railway International Logistics Port, Fuyang is accelerating the construction of a modern, integrated "rail, road, air, and water" transportation and logistics system. This system is designed to support Fuyang in leading northern Anhui and connecting with Hefei, creating a robust platform for opening up. In its commitment to lowering logistics costs and improving efficiency for businesses, Fuyang has demonstrated consistent seriousness and determination.

Haoyuan Chemical Group's New Strategic Choice

On the morning of July 6th, at the Anhui (Fuyang) Railway International Logistics Port, over a dozen trucks loaded with fertilizer were lined up. Workers, in teams of three, transferred bags from the trucks onto a conveyor belt, which fed directly into waiting railcars. "For bagged goods like fertilizer, we typically opt for rail transport," said Guan Yafeng, Deputy General Manager of the Sales Company at Haoyuan Chemical Group. The group sells over 3.5 million tons of various goods annually. Saving even a small amount per ton in transportation adds up to a substantial figure.

As a leading enterprise with annual revenues exceeding 20 billion yuan, Haoyuan's choice of logistics methods carries significant indicative weight. "Since Phase I of the Fuyang Railway International Logistics Port commenced operations in February 2025, we have gradually increased the frequency of routing our goods through here," Guan noted. Currently, not only are bulk goods like fertilizer shipped nationwide from the port, but other products such as PET are also beginning to be transported using the port's container services.

"At present, our mainstream transportation methods are three: waterway, railway, and road," Guan explained, detailing the cost breakdown. Transporting one ton of goods via waterway costs less than 0.1 yuan per kilometer. Railway transport costs about 0.15 yuan per kilometer, while road transport raises the cost to approximately 0.22 yuan per kilometer. "Among the three, water transport is the cheapest but has limited accessibility. Road transport offers the best accessibility but is also the most expensive," Guan stated.

After comprehensive comparison, railway transport emerges as the optimal solution. For Haoyuan, if half of its traditional road freight volume—1.75 million tons—could be shifted to rail, the cost would drop directly from 385,000 yuan per kilometer to 262,500 yuan, representing a saving of 122,500 yuan per kilometer. "Currently, most of our goods destined for Jiangxi, Hunan, Guangdong, and other regions are transported by rail," Guan said. He expects the proportion of rail transport to increase significantly as railway accessibility improves further and costs continue to decrease.

New Advantages of a Dual Gateway Hub

Pan Miaomiao has taken on a new role. Following the operation of Phase I of the Anhui (Fuyang) Railway International Logistics Port in November 2025, she became the Fuyang site manager for Hefei Jiusheng Logistics Co., Ltd. "Previously, rail logistics for bulk goods in northern Anhui were mostly consolidated in Hefei," Pan explained. After the Fuyang port became operational, her company quickly identified the business opportunity and has positioned it as a crucial consolidation and distribution hub for their entire northern Anhui operations, channeling more freight through the location.

Behind Jiusheng Logistics' strategic move into Fuyang lies the city's unparalleled geographical advantage as a bidirectional gateway between the Yangtze River Delta and the Central Plains urban agglomeration. From the perspective of the Yangtze River Delta, Fuyang is the "first stop" for Delta enterprises entering the Central Plains market. Viewed from the Central Plains, Fuyang serves as the "north gate" to the Yangtze River Delta. Being close to Fuyang means being close to the Delta.

Shortly after Jiusheng Logistics began operations in Fuyang last November, business leaders from Bozhou, Shangqiu, Zhoukou, and other nearby areas came to discuss cooperation. Pan Miaomiao pointed out that it's difficult to secure discounts on container shipping for individual, scattered enterprises. The major advantage of the Railway International Logistics Port is its ability to attract businesses within a 150-kilometer radius of Fuyang to consolidate their shipments here. "Once the scale effect kicks in, transportation costs drop noticeably," Pan said.

She provided an example: shipping a standard 40-foot container from Fuyang to Dongguan, Guangdong, would cost at least 10,000 yuan by road. Choosing rail transport brings the cost down to less than 8,000 yuan, saving at least 2,000 yuan per container. The combined advantages of Fuyang's dual gateway location and the inherent freight consolidation benefits of the Railway International Logistics Port have propelled the city to the center stage as a logistics hub connecting east and west, and linking north and south.

Forging a New Era for the Hub Through Consolidation

Since arriving at the Anhui (Fuyang) Railway International Logistics Port, Liu Tao has been noticeably busier. "I used to work at Kouzijizhan Station, where cargo throughput was relatively low," said Liu Tao, the Freight Director at the Fuyang North Station Railway Logistics Base. With the completion and operation of Phase I of the International Logistics Port, its cargo consolidation function has strengthened significantly, attracting many colleagues from various stations to work here.

"Starting from scratch, we now handle over 50 container cars daily on average. The port's cargo consolidation function is becoming increasingly sophisticated," Liu stated. Phase I of the Fuyang Railway International Logistics Port is already equipped with four dedicated freight loading and unloading lines. From January this year to the present, it has handled nearly 2.32 million tons of cargo.

"The variety of goods shipped from the port is becoming increasingly diverse, ranging from wickerwork, grain, and fertilizer to expanded categories like iron ore powder, PET materials, and furniture," Liu noted. As the port's reputation grows, more and more enterprises from around Fuyang are choosing to bring their goods here for consolidation. "Once the scale effect of cargo consolidation becomes apparent, logistics costs will continue to fall," Liu added. Judging by the steadily rising cargo throughput data since the beginning of the year, the Fuyang Railway Logistics Port is gradually entering a virtuous cycle of "scale consolidation leading to cost reduction."

Standing at the site of the completed Phase I project and looking towards the under-construction Phase II, Liu Tao is full of confidence for the future. Looking ahead, the fully operational Fuyang Railway International Logistics Port will form a multimodal "rail-road-water"联运 system together with the Yingquan Port, the Fuyang Delta Comprehensive Shipping and Transportation Hub, the railway network, expressways, national and provincial trunk roads, and the Jianghuai Trunk Line "Golden Waterway." This system will radiate its influence across a 150-kilometer region centered on Fuyang, serving a population of 65 million, and propelling Fuyang's transformation from a mere transportation hub into a true logistics hub, market hub, and economic hub.

"At that time, logistics costs will be even lower. More goods will be consolidated in Fuyang and shipped nationwide, even reaching global markets via rivers and seas," Liu Tao concluded.

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