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China’s intermodal rail system is key to opening the country’s interior to increased export goods production, according to APL North Asia President Ken Glenn. Addressing the Western Area International Logistics Channel Forum in Chongqing, China, last week, he said expanded inland freight-rail service will attract increased investment to western and central China.

“It is our belief that with expanded infrastructure, the rate of investment in these regions will accelerate and grow at a faster rate than China overall,” said Glenn in a prepared statement.

Historically, most Chinese exports are produced in coastal areas.  However, manufacturers will increasingly move inland as rail capacity, frequency and connections improve between China’s interior and seaports, said Glenn, adding that rail is less expensive and produces fewer emissions than trucks, and provides greater flexibility than river barges.

“Intermodal rail has the most promise and potential to address the long-distance logistics and transportation needs of the country’s export manufacturers,” he said.