China abolishes toll for B roads
The Ministry of Transportation announced yesterday that 65 percent of China’s toll stations on B roads have been removed, and that the rest will be taken away before 2012.
2012-02-08
2012-02-08
2012-02-08
In order to sweeten this year's hike in fuel tax, China promised to remove the road tolls except on motorways.
The government also needs to tackle the increasing costs of freight transportation, which pose an obstacle to selling China's goods domestically. In China, domestic coal prices are higher than import prices and the country's toys sell at a cheaper price on overseas markets than they do within China.
Changan Automobile (SZ:000625), the Chinese partner of Ford and Mazda, surged to the 10 percent trading cap. The company said its vehicle sales in April rose to 117,846 units from 78,258 a year earlier.
SAIC Motor (SH:600104), the nation’s largest carmaker, jumped 9.63 percent. Changchun FAWAY Automobile Components Co.(SH:600742), added 9.11 percent. Denway Motors (HK:0203) climbed 2.45 percent.
China has 70 percent of world’s toll roads. In the country nearly all motorways, 60 percent of A roads and 40 percent of B roads are financed with tolls. The system has helped the quick growth of road construction, but the funding collected by the system has often more than paid for the construction. Beijing’s airport high speed access road, for example, has generated over RMB 10 billion for the government while its cost was only RMB 1.2 billion.
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