Heritage Logistics Update: Port and Road Network Developments

Anhui’s Logistics Network: Strategic Position

Anhui occupies a strategic position at the intersection of China’s Yangtze River Economic Belt (长江经济带, Chángjiāng Jīngjì Dài) and the Yangtze River Delta (YRD) integration zone. The province’s logistics network connects inland manufacturing centers to Shanghai’s deep-water port (approximately 500 km from Hefei via highway) and provides direct access to Central and Western China through an expanding network of expressways, railways, and inland waterways.

Total freight volume in Anhui reached 1.28 billion tonnes in H1 2026, a 7.6% increase year-on-year. Road transport accounts for 72% of freight volume, waterway transport for 18%, railway for 8%, and air freight for 2%. The province’s logistics costs as a percentage of GDP have decreased from 14.8% in 2020 to 13.2% in H1 2026, approaching the national target of 12.5%.

Port of Wuhu: Major Expansion Project

The Port of Wuhu (芜湖港, Wúhú Gǎng), Anhui’s primary river port and a major Yangtze River logistics hub, is undergoing a ¥4.2 billion expansion project scheduled for completion in Q4 2026. This is the single largest infrastructure investment in Anhui’s logistics sector this year.

Expansion Details

• New container berths: 8 new 10,000-tonne container berths, increasing total annual handling capacity from 1.8 million TEU to 2.5 million TEU
• Dredging project: Channel deepening to accommodate 10,000-tonne vessels year-round (currently limited to 5,000-tonne during dry season)
• Automated container yard: A new 200,000 m² automated stacking yard equipped with remote-controlled gantry cranes and an AI-optimized yard management system
• Rail-water intermodal terminal: A dedicated rail terminal within the port area, enabling direct container transfer between rail and ship without truck intermediate transport
• Bonded logistics zone expansion: An additional 150,000 m² of bonded warehouse space within the port’s customs supervision area

Once completed, the expanded Port of Wuhu will reduce average vessel turnaround time from 18 hours to 12 hours and reduce container handling costs by an estimated 15%. The port will also offer direct weekly services to Shanghai (reducing transit time from 3 days to 1 day for barge service) and new direct container routes to Southeast Asian ports.

Impact on Foreign Firms

For FIEs importing or exporting through the Port of Wuhu, the expansion will deliver several tangible benefits:

• Shipping cost reduction: Direct Southeast Asian routes will reduce per-container costs by approximately ¥1,200–1,800 compared with current transshipment via Shanghai
• Inventory optimization: Faster vessel turnaround and more reliable schedules allow FIEs to reduce safety stock levels by 15–20%
• Customs efficiency: The expanded bonded logistics zone enables duty-free storage and deferred customs clearance, improving cash flow for import-intensive FIEs
• Intermodal flexibility: The new rail terminal allows FIEs in Bengbu, Hefei, and other inland cities to move containers directly by rail to the port, reducing trucking costs by 25–35%

Highway Network Developments

Anhui’s expressway network has expanded to 6,200 km as of mid-2026, with an additional 480 km under construction. The province aims to achieve “expressway access for all county-level cities” by 2028. Key highway projects directly relevant to FIEs include:

Hefei-Wuhu Expressway Expansion (G5011)

This critical 140 km corridor connecting Hefei to the Port of Wuhu is being expanded from 4 lanes to 8 lanes at a cost of ¥6.8 billion. The project, scheduled for completion in late 2027, will increase capacity from 45,000 vehicles per day to 90,000 vehicles per day and reduce travel time from 2 hours to 1.2 hours. In the interim, a parallel expressway (G4212 Hefei-Wuhu section) has been designated as an alternative truck route to alleviate congestion.

Anhui-Henan Expressway (G30 Lianhuo Section)

This ¥3.2 billion project extends Anhui’s expressway network westward to connect with Henan Province’s industrial centers. For FIEs shipping goods to Central and Western China, this route reduces trucking time from Hefei to Zhengzhou from 7 hours to 5 hours and reduces toll costs by ¥320 per trip.

Hefei Ring Expressway Eastern Section

The completion of the eastern section of Hefei’s ring expressway in Q2 2026 has significantly improved logistics connectivity in the city’s eastern industrial corridor, including access to the Hefei ETDZ, the High-Tech Zone, and the Comprehensive Bonded Zone. Truck travel times between these zones have been reduced by 30–40%.

Rail Freight Developments

China-Europe Railway Express (Anhui Routes)

Anhui operates 7 China-Europe Railway Express (中欧班列, Zhōng-Ōu Bānliè) routes from Hefei, Wuhu, and Bengbu. In H1 2026, a total of 486 trains departed from Anhui to European destinations, carrying 42,800 TEU of cargo worth ¥32.6 billion, representing 24% year-on-year growth.

FIEs utilizing the China-Europe Railway Express benefit from subsidies of ¥2,000–5,000 per container from the Anhui Department of Commerce, making rail competitive with sea freight for time-sensitive cargo to European destinations. The service is particularly attractive for NEV exports, with NIO reporting a 28% reduction in delivery time to European customers compared to sea freight.

Hefei Comprehensive Bonded Zone Railway Terminal

A new railway freight terminal within the Hefei Comprehensive Bonded Zone commenced operations in March 2026, enabling direct rail loading of bonded goods. This facility is particularly valuable for FIEs using the bonded zone for processing trade, as bonded materials can now be received and dispatched directly by rail without customs transit documentation. The terminal has a capacity of 80,000 TEU per year.

Air Freight Developments

Hefei Xinqiao International Airport (HFE) has expanded its cargo handling capabilities significantly:

• New cargo terminal: A 40,000 m² dedicated cargo terminal opened in January 2026, increasing annual cargo handling capacity from 120,000 tonnes to 250,000 tonnes
• New international routes: Four new all-cargo routes launched in H1 2026 — Hefei–Frankfurt (5 weekly flights), Hefei–Singapore (3 weekly), Hefei–Seoul (4 weekly), and Hefei–Bangkok (3 weekly)
• Cross-border e-commerce hub: A dedicated 8,000 m² cross-border e-commerce processing facility within the cargo terminal, capable of processing 50,000 parcels per day
• Cold chain facility: A 3,000 m² temperature-controlled cargo facility for pharmaceuticals and perishable goods, with temperature ranges from -20°C to +8°C

Air freight rates from Hefei to major international destinations in H1 2026:

• Hefei–Frankfurt: ¥18–24/kg (general cargo), ¥28–38/kg (priority/high-value)
• Hefei–Singapore: ¥14–20/kg (general), ¥22–30/kg (priority)
• Hefei–Seoul: ¥10–16/kg (general), ¥18–26/kg (priority)
• Hefei–Tokyo: ¥12–18/kg (general), ¥20–28/kg (priority)
• Hefei–Bangkok: ¥12–18/kg (general), ¥20–28/kg (priority)

Last-Mile Logistics and Intra-Provincial Distribution

Anhui’s intra-provincial logistics network has improved significantly with the completion of the “Rural Logistics Last Mile” program, which established logistics service points in all 1,352 townships across the province. Key developments for foreign firms with distribution operations include:

• Intra-provincial delivery times: Standard delivery from Hefei to any county-level city in Anhui now averages 1.5 days (down from 2.5 days in 2024), with express services achieving same-day delivery to cities within 150 km of Hefei
• Cold chain expansion: 42 cold chain logistics providers now operate in Anhui, with total refrigerated vehicle capacity of 3,800 units, serving the province’s growing food, pharmaceutical, and biomedical sectors
• Third-party logistics (3PL) market: Over 280 licensed 3PL providers serve Anhui, with the top 10 handling 45% of the market. Dedicated foreign-dedicated logistics services are offered by 15 providers, including Sinotrans Anhui, Kerry Logistics Hefei, and DHL Hefei
• Digital logistics platforms: Anhui’s “Smart Logistics” platform, a government-industry collaboration, now connects 14,000 trucks and 3,800 warehouses, enabling real-time capacity matching and route optimization. FIEs registered on the platform report average logistics cost reductions of 8–12%.

Logistics Costs Benchmark

Current logistics cost benchmarks for FIEs operating in Anhui (H1 2026):

Common Logistics Pitfalls

H2 2026 Logistics Outlook

Several developments will shape Anhui’s logistics environment in the coming months:

• Q3 2026: The new Hefei-Wuhu dedicated rail freight service begins trial operations, offering 4 daily round trips with 45-minute travel time — reducing container transfer costs between Anhui’s two largest industrial centers.
• September 2026: Anhui’s “Green Logistics” pilot program launches in Hefei, Wuhu, and Bengbu, offering FIEs using electric trucks and low-emission logistics equipment a 30% reduction in road tolls and priority access to city center delivery zones.
• October 2026: Hefei Xinqiao Airport’s new direct all-cargo route to Los Angeles launches (3 weekly flights), providing Anhui exporters with a competitive air freight option to the US West Coast for the first time. Estimated rate: ¥22–30/kg.
• Q4 2026: The Anhui Integrated Logistics Information Platform goes live, providing real-time tracking of all freight moving through the province’s ports, airports, and major logistics parks, with API access for FIE supply chain management systems.

How to Optimize Your Logistics