Huaxing Petrochemical's railway siding officially went into operation on April 3, marking the formal establishment of the company's independently-run logistics system. The siding will significantly improve the safety and efficiency of the company's raw material and product transportation and save nearly 150 million yuan in annual operation costs.
Huaxing has seen its processing load continue to rise over the years. It has tried to build an effective and smooth logistics system to ensure production-sales balance. The company kicked off construction of the railway siding in October 2012. It followed guidance from ChemChina and ChemChina Petrochemical and received support from the government. The company worked closely with a designer and construction agency and completed the project at the end of 2014.
The railway siding runs 3.4 kilometers and includes a branch of railways from Shandong's Shouguang to Zouping. The project involved 265 million yuan in total investment and will transport 7.3 million tons of raw materials and products annually, such as raw oil, coal, oil products and petroleum coke.
The company will take advantage of Shandong's port logistics and shake off bottlenecks from road, weather, and loading and unloading sites. The railway siding will boost the oil products market in Central and West China in the long run, broaden traditional and e-commerce marketing channels, and increase sales profit. Huaxing will push for deeper cooperation with various parties, such as the railway department, port oil depot and suppliers, to upgrade its comprehensive competitiveness and improve quality and efficiency.