INLAND WATER TRANSPORT IN COMMUNIST CHINA 1950-58

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• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R01141A001500110002-0
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• Document Page Count: 37
• Document Creation Date: December 27, 2016
• Document Release Date: August 26, 2013
• Sequence Number: 2
• Publication Date: October 1, 1959
• Content Type: REPORT

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ECONOMIC INTELLIGENCE REPORT
N? 1
INLAND WATER TRANSPORT IN COMMUNIST CHINA
1950-58
CIA/RR 59-40
October 1959
CENTRAL INTELLIGENCE AGENCY
OFFICE OF RESEARCH AND REPORTS
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WARNING
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. '793 and '794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
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ECONOMIC INTELLIGENCE REPORT
INLAND WATER TRANSPORT IN COMMUNIST CHINA
1950-58
CIA/RR 59-1413
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
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FOREWORD
The purpose of this report is to present (1) an analysis of
inland water transport in Communist
China and (2) estimates of the size, character, efficiency, and
employment of inland water transport in China, with special reference
to its ability to serve the transportation requirements of the Chinese
Communist economy.
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CONTENTS
Summary and Conclusions
Page
1
I.
Introduction
2
II.
Inland Waterway System
3
A.
General Pattern
3
1. Yangtze River System
5
2. Pearl River System
5
3. Amur River System
5
4-. Some Lesser Systems
6
5. Grand Canal
6
B.
Major Ports
7
III.
Organization
7
A.
Yangtze Navigation Bureau (YNB)
7
B.
Provincial Navigation Bureaus
8
IV.
Inland Water Fleet
8
A.
Modern
8
B.
Primitive
9
V.
Performance and Efficiency of Operations
10
A.
Volume of Cargo Hauled
10
B.
Composition of Cargo
15
1. Agricultural Products
17
2. Mineral Construction Materials
17
3. Coal
17
,
I4. Ferrous Metals
18
5. Timber
18
6. Other Commodities
18
C.
Efficiency of Operations
18
VI.
Investment
22
VII.
Plans and Prospects
24.
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Appendixes
Page
Appendix A. Methodology 25
Tables
1. Total Length of Navigable Inland Waterways in Communist
China, 1950-58
2. Estimated Horsepower of the Tugboat Fleet on Inland
Waterways in Communist China, 1952-57 9
3. Index of the Volume of Total Modern Transport and
Modern Inland Water Transport in Communist China,
1952-58 10
4. Performance of Total Modern Transport and Modern Inland
Water Transport in Communist China, 1950-58 12
5. Tons Originated by Modern Inland Water Transport on the
Yangtze River in Communist China, 1952-58 13
6. Performance of Inland Water Transport in Communist
China, 1957 13
7. Tons Originated by Modern Inland Water Transport and
by Primitive Inland Water Transport in Communist China,
1954 and 1957 14
8. Composition of Cargo Carried by Total Inland Water
Transport in Communist China, 1956 15
9. Estimated Composition of Cargo Carried by Modern Inland
Water Transport in Communist China, 1956 and 1958 . . . 16
10. Comparative Costs of Shipping by Rail Transport and by
Inland Water Transport from Szechwan to Shanghai in
Communist China, 1957 19
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11. Comparative Unit Costs of Shipping by Rail Transport
and by Inland Water Transport on the Yangtze River
in Communist China, 1956
Page
20
12. Index of Planned Investment in Capital Construction for
Inland Water Transport in Communist China, 1953-58 23
Map
Communist China: Major Inland Waterways Inside
Back Cover
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INLAND WATER TRANSPORT IN COMMUNIST CHINA*
1950-58 ,
Summary and Conclusions
Communist China has an extensive inland waterway system that is
capable of contributing much to the economy of the country. More than
114,000 kilometers (km) of waterways are navigable by junks, and about
40,000 km also are navigable by modern powered vessels. In 1955,
30,000 km of steamer routes and nearly twice this length of junk routes
were in operation. Three rivers -- the Yangtze, the Sungari, and the
Pearl -- carry nearly 60 percent of all modern inland water traffic.**
The capacity of the inland water fleet of Communist China is esti-
mated to be between 4 million and 5 million gross register tons
(GRT),*** but only about 10 percent of the capacity of the fleet is
composed of modern powered vessels, the rest being composed of junks
and other small craft. Although still of major importance, the primi-
tive sector of the fleet is declining in relative performance. Primi-
tive craft carried 84.6 percent of the volume transported in 1954, but
their share had declined to about 70 percent in 1958, and this trend is
expected to continue.
If 1952 is taken as the base year, the index of tons originated****
in Communist China in 1957 was 427 for inland water transport compared
with 255 for all types of transport. Tons originated by modern trans-
port on inland waterways increased from 4.5 million tons in 1950 to
56.7 million tons in 1958. For the same period, performance increased
from 1.68 billion ton-kilometers (tkm) to 21.3 billion tkm.
* The estimates and conclusions in this report represent the best
judgment of this Office as of 15 August 1959.
** The terms modern and primitive (or native) are adopted for the
purpose of this report to overcome the inconsistency of Chinese Com-
munist terminology. The primitive fleet consists of junks and other
wooden sailing vessels. It is not clear whether the Chinese regard
motorized junks as belonging to the modern or the primitive fleet.
*** Gross register tonnage is a measure of the cubic capacity of the
cargo space of a vessel expressed in tons at the rate of 1 long ton per
100 cubic feet.
xxx* Unless otherwise indicated, tonnages are given in metric tons
throughout this report.
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In spite of these achievements, inland water transport in Communist
China has been a relatively inefficient operation. The average cost
of transportation on the Yangtze River exceeds the average cost of
rail transport, and because the Yangtze has many advantages lacking
on other inland water routes, this condition may be presumed to be
general. The high costs of operation are due to inefficient utili-
zation of high-cost fuels and personnel and lack of adequate planning
and coordination. The Chinese may be expected to be reasonably suc-
cessful in their attempts to reduce the costs of operation.
Investment in water transport apparently has not lagged behind
that in other sectors of the Chinese Communist economy. The largest
part of investment thus far has been in construction of vessels. In
the last 2 years, however, emphasis has shifted more to development
and mechanization of ports. Additional investment in water conserv-
ancy also may be expected to benefit navigation. If performance of
inland water transport is to continue at the present level or at an
even higher level, however, the Chinese Communists must maintain a
balanced program of investment at a corresponding level.
Although the total requirements of the Chinese Communists for
transportation in 1959 are expected to be nearly double those in 1958,
performance by all types of transport will not be sufficient to meet
this demand. The inland waterway system has been almost constantly
pressed to meet the demands placed on it, and in 1956 and again in
1958 inefficient operations and poor harbor facilities caused notable
congestion on the waterways. Thus considerable doubt exists as to the
ability of inland water transport to contribute its share to require-
ments for transportation in 1959.
I. Introduction
Inland water transport traditionally has held a position of pre-
eminence in Chinese transportation. Only in recent times has rail
transport replaced water transport as the principal hauler of goods,
and only since the Communist regime have highways originated more ton-
nage than inland waterways. In terms of ton-kilometers, inland water
transport still ranks second to rail transport, followed by coastal
shipping and highway transport.
The inland. waterway system which the Chinese Communists acquired
in 1949 was in a bad state of disrepair. The ravages of war and the
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inefficient and corrupt civil administration had reduced the system
to a fraction of its former capacity. Much of the inland water fleet
had been either sunk or removed from the country. Navigation lights
and markers were nonexistent, channels and harbors were filled with
silt, and most port facilities were inadequate.
The Chinese Communists decided to concentrate on railroad con-
struction-in the First Five Year Plan (1953-57), but inland water-
ways were not ignored. Rivers were dredged, vessels were salvaged,
new vessels were constructed, and harbors were restored to usefulness.
Extensive and elaborate schemes for water conservancy were undertaken,
with the result that currents and depths of water began to be con-
trolled and rivers remained in their channels. In view of the Chinese
efforts and the small base from which they started, the increase in
the volume of inland water transport in 1958 to more than six times the
figure for 1952 is not surprising.
Although the performance of inland water transport in Communist
China has almost regained the level it had reached before the Chinese
civil war, the Chinese Communists still have a number of problems to
solve. The inland waterway system has been pressed almost constantly
to meet the demands placed on it and in 1956 and 1958 proved unable to
meet the requirements of the economy. The evidence indicates that the
"greater leap forward" anticipated in 1959 will require considerably
more of inland water transport than the system will be able to produce.
II. Inland Waterway System*
A. General Pattern
The inland waterways of Communist China have a combined length
of more than 320,000 km, of which at least 114,000 km were navigable
in 1958.** 2/ More than one-third of the total navigable length can be
* See the map, inside back cover.
** The Chinese Communists have not defined the term navigable. Judging
from the type of craft used and the claims of navigability for various
rivers and provinces, this figure (114,000) probably includes channels
with a depth of 1 meter (m) or more. The figures in Table 1, column 2
(p. 4, below), probably include all channels of 1.5 m or more. A recent
announcement claimed that 150,000 km of waterways were navigable at the
end of 1958 and indicated that this amount was an increase of 10,000 km
above the navigable length in 1957.
This statement is out of line with all
if true, probably includes channels of less
having only seasonal navigability. Another
previous announcements and,
than 1 m in depth and those
possibility is that the figure is only a revision of previous announce-
ments and is based on new information resulting from hydrographic sur-
veys. Until the matter is clarified by additional information, however,
the figure of 150,000 km must be regarded with considerable skepticism.
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used by steamers or other powered vessels.
a total of about 30,000 km of waterways was served by inland steamers
on regular routes in 1955, whereas routes served by junks were double
this length. ?V This figure compares with a total of 83,800 km of
waterways served by steamers in the USSR.
With the exception of a few rivers in the northern and western
regions, the rivers of Communist China do not freeze and are navigable
throughout the year. There is considerable variation in water level,
however, ranging from 12 to 38 feet in some areas, a factor which has
a marked influence on navigation.
The inland waterway system of Communist China consists of
three major river systems and numerous additional rivers and canals.
The water routes are generally oriented in an east-west direction
and are important lines of communication between coastal and interior
areas. Table 1 indicates the growth of the inland waterway system
in Communist China since 1950.
Table 1
Total Length of Navigable Inland Waterways
in Communist China 2/
1950-58
Kilometers
Year
Total Length
of Navigable
Inland Waterways
Length of Inland
Waterways Navigable
by Powered Vessels
1950
1951
73,100
N.A.
30,000
N.A.
1952
95,025
30,508
1953
95,025
30,508
1954
95,025
30,508
1955
99,938
31,685
1956
103,619
38,304
1957
104,700
39,500
1958
114,700 y
40,500 2/
a. !-2/
b. Based on an announced increase of 10,000 km in
1958. 2/
c. Estimated.
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1. Yangtze River System
The Yangtze River and its tributaries in Communist China
comprise more than 57,000 km of inland water routes important both
for local traffic and for connecting the Szechwan Basin with the in-
dustrial regions and ports along the coast. Some of the more important
of the tributaries are the Min, the Han, the Chia-ling, and the Yuan
Rivers. More than 16,000 km of the Yangtze River System are navigable
by modern powered vessels, and, in 1957, 13.4 million tons of cargo
moved on the Yangtze by means of such vessels. This amount represents
33 percent of the total volume of cargo moved by modern powered vessels
in Communist China in 1957. The main products in the traffic on the
Yangtze River System are rice, other grains, and livestock moving down-
stream and ores, refined petroleum, and manufactured goods moving up-
stream. Coal and building materials move in both directions.
2. Pearl River System
The Hsi, Tung, Pei, and Kuei Rivers all enter the Smith
China Sea by way of the Pearl (Chu) River estuary and together with
their tributaries are commonly referred to as the Pearl River System.
This system ranks second to the Yangtze River System in terms of navi-
gable distance and contains more than 10,000 km of navigable Waterways,
4,500 km of which are navigable by modern powered vessels. In 1953 the
Pearl River System carried about 3.7 million tons, or 24 percent of the
cargo moved on inland waterways by modern vessels. .Y The vast majority
of cargoes moving downstream on the Pearl include wood products, timber,
wood oil, foodstuffs, livestock, and manganese. The cargoes moving
upstream are mainly finished goods, machine parts, processed foods,
chemicals, and fertilizers. Coal is shipped in both directions, but
petroleum is shipped upriver, with the empty drums being returned to
Canton.
3. Amur River System
The Amur River System ranks third after the Yangtze and
Pearl River Systems in terms of importance and volume of cargo moved in
Communist China. The Amur System includes the Argun, Ussuri, and
Sungari Rivers, which are tributary to the Amur, and the Nonni River,
which is tributary to the Sungari, as well as numerous rivers of lesser
significance. Although the navigation season lasts only about 6 months
because of freezing, this system is of special importance because of
the route it provides between the Manchurian plain and the USSR. On
the Amur River, traffic moves in Soviet vessels, and there is little or
no Chinese transport. The Sungari and its tributaries carried about
1.5 million tons, or 5.7 percent of the traffic moved on inland water-
ways by modern vessels in 1955. Harbin and Chia-mu-ssu are rail
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transshipment centers, and most commodities move in the direction of
one of these ports. The major commodities moving are timber and
agricultural products, including grain, hemp, soybeans, and others.
Construction materials and coal are also important commodities.
4. Some Lesser Systems
The Yellow River ranks second to the Yangtze River among
the rivers of Communist China in terns of total length. In terms of
navigable distance, however, it ranks about fifth, after the Huai
River, because of siltation and variations in water level. The Yellow
River is important only for local transport because its navigable
reaches are intermittent and it has no convenient outlet to the sea.
According to announced plans, the water conservancy program projected
for the Yellow River will render it navigable from its mouth to the
San-men Dam, an increase of about 1,000 km, thus providing an all-
water route from Peking to the interior.
The Huai River System ranks immediately after the Amur
River System in terms of navigable distance. The extensive program
for flood control and water conservancy in the Huai Basin will render
more than 3,900 km of the river and its tributaries navigable to
modern powered vessels by 1962 and will provide an important water
route linking Shanghai and the lower Yangtze River ports with the rich
agricultural region of the north China plain.
Many other rivers are of importance in Communist China,
particularly in local transport. Among these are the Min (Fukien)
and Liao Rivers, which provide access from the coast to the interior.
The Hai River, although short, provides access by water to the sea
for the industrial region around Peking. The Tumen and Yalu Rivers
on the border of Korea are carriers of local trade and some inter-
national trade. The Ili and Chernyy Irtysh Rivers provide a similar
connection between the USSR and Sinkiang Province.
5. Grand Canal
The Grand Canal, more than 1,700 km in length, runs from
Tientsin to Hangchow in Communist China. Although it is presently
of little use for navigation, reconstruction of the canal is under-
way. Present plans call for straightening the canal and shortening
its length to 1,500 km as well as for dredging to accommodate vessels'
of more than 2,000 GRT by the end of the Second Five Year Plan
(1958-62). When completed, the canal will provide the only north-
south inland waterway of any significance. It will join the
Huai, Yangtze, and other rivers into an interconnecting network and
will provide water transport among virtually all the important
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industrial and agricultural regions of North and Central China. Three
major ports are to be constructed for handling coal, one of which will
have a capacity of 20 million tons annually. //
B. Major Ports
With the exception of the Yangtze, most rivers of Communist
China have fewer than two ports which handle sufficient goods to be
designated major ports. By far the most important of the Yangtze
ports and hence the most important inland water port in China is
Shanghai, which is also the largest ocean port in the country. Hahkow,
Chungking, and Nanking are also major ports on the Yangtze and rank
high among the inland water ports. On the Pearl River, Canton is of
major importance, whereas Harbin and Chia-mu-ssu dominate transport on
the Sungari River. The volume of cargo handled by Yangtze ports in
1958 ranged from more than 4 million tons handled by Chungking to
32 million tons handled by Shanghai. f/ Other ports are minor when
compared with these, although some, such as Ma-an-shan and Yu-ch'i-
k'ou, are of considerable economic significance.
III. Organization
Central control over inland water transport in Communist China
rests in the Sea and River General Navigation Bureau in Peking, which
is subordinate to the Ministry of Communications. Operational control
over planning and policies for inland water transport is exercised by
regional or provincial bureaus, which are described below.
A. Yangtze Navigation Bureau (YNB)
The Yangtze Navigation Bureau (YNB) of Communist China has
jurisdiction over the Yangtze River and its major tributaries. Before
1958, virtually all administrative and operational policies in this
area were decided by the YNB, which had final and exclusive juris-
diction. The YNB was organized into three major branches, each having
control over a different section of the river, and into offices which
performed staff functions (finance, planning, engineering, and the
like). The three branches were at Shanghai, Chungking, and Hankow.
Each branch had five or more subordinate offices located in various
inland water ports under its jurisdiction. Control over local intra-
provincial shipping was the responsibility of the several provinces
but was coordinated with the various branch offices concerned.
In 1958, following the general policy of decentralization. of
control, much of the organization described in the preceding paragraph
was transferred to the control of the provinces. Many of the harbor
offices and a large number of vessels formerly controlled by the YNB
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were given to the provinces, as were some specialized functions such
as waterWay engineering. The full implications of this change have
not yet become apparent. The YNB still exercises a great deal of
control over all aspects of inland water transport and still coordi-
nates all long-distance hauling, plans, and the like. The provinces,
however, have some real responsibilities for administration, invest-
ment, and preliminary planning. The exact division of responsibilities
and the devices for coordination apparently are not yet firmly estab-
lished.
B. Provincial Navigation Bureaus
Control over shipping on the Pearl and Sungari Rivers in
Communist China is exercised by the provincial navigation bureau con-
cerned. Before 1957 the Pearl River Navigation Bureau had control over
.the Pearl River similar to that of the YNB over the Yangtze River. In
March 1957 the Pearl River Navigation Bureau was abolished, and control
over the Pearl was given to the KWangtung and Kwangsi Provincial Navi-
gation Bureaus. A similar move had already occurred in the northeast,
where the Northeast Inland Water Navigation Bureau, which controlled
traffic on the Amur and Sungari Rivers, had been abolished in 1955 in
favor of the Heilungkiang Shipping Bureau, a provincial organization.
Virtually all of the other rivers are under the control of the provinces
through which they flow.
IV. Inland Water Fleet
The inland water fleet of Communist China consists of a multitude
of craft with a great variety of types and sizes, ranging from new
passenger-cargo vessels of 4,000 GRT to small sampans capable of carry-
ing less than 1 ton. A statement of the total number and capacity of
vessels by type is not possible from the evidence available, but some
general observations can be made.
A. Modern
The modern inland water self-propelled fleet of Communist China
is estimated to have totaled about 30 vessels and 80,000 GRT at the end
of 1956, 2/ or approximately 110,000 deadweight tons (DWT).* The exact
additions to the fleet since 1956 are unknown, but they have been sub-
stantial. The announced plans for construction of vessels in 1958
called for 381 vessels of both maritime and inland types totaling
96,000 DWT. 12/ Subsequent announcements indicate that more than
* Deadweight tonnage is a measure of the carrying capacity of a ves-
sel in long tons -- that is, the difference between the vessel's dis-
placement light and its displacement loaded.
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100,000 DWT were constructed in 1958. A considerable part of this
construction consisted of barges and tugboats for inland water use.
Plans call for construction of refrigerated, petroleum, and ore
barges, and all three types of vessels are believed to be under con-
struction. The evidence indicates continued growth and modernization
of the inland water fleet, with greater emphasis on barge tows and
decreasing use of self-propelled vessels.
By 1957 the horsepower of the tugboat fleet had increased to
more than six times the power available in 1952, as shown in Table 2.
Table 2
Estimated Horsepower of the Tugboat Fleet on Inland Waterways
in Communist China 2/
1952-57
Index of Percentage Increase
Horsepower Above
' Year (1952 = 100) Preceding Year
Thousand Horsepower
1952
100
41.1
1953
141
41.0
58.0
1954
215
52.5
88.4
1955
358
66.5
147.2
1956
476
33.0
195.8
1957
640
34.5
263.4
a.
The capacity of the barge fleet on the Yangtze River was estimated to be
nearly 200,000 GRT in 1958 (about 282,000 EMT), 1V and probably another
200,000 GRT of barges operate on the Pearl and Sungari Rivers. If modern
vessels of all types and sizes are included, the total tonnage of the
modern inland water fleet of Communist China is probably between 400,000
and 500,000 GRT and may be even larger.
B. Primitive
Estimates of the primitive inland water fleet of Communist China
are very tenuous. The large number of junks in existence, howevei',
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makes them significant enough to warrant an appraisal of their ca-
pacity. It seems likely that there are from 300,000 to 400,000 junkb
with a capacity of 2 million to 4 million DWT. 14/ Junks are esti-
mated to carry between 60 and 80 percent of the total volume of goods
moved on the inland waterways. 12/
V. Performance and Efficiency of Operations
A. Volume of Cargo Hauled
Although the performance of inland water transport in Com-
munist China has not regained the position of preeminence which it
occupied in the pre-Communist period, it has experienced a steady
and pronounced growth. If 1952 is taken as the base year, tons
originated by modern transport on the inland waterways of China in-
creased at a faster rate than total tons originated by all forms of
modern transport in the country, as indicated in Table 3. During
Table 3
Index of the Volume of Total Modern Transport
and Modern Inland Water Transport in Communist China
1952-58
1952=100'
Year
Total
Modern Transport
Modern
Inland Water Transport
1952
100
100
1953
126
163
1954
159
218
1955
167
279
1956
221
376
1957
255
427
1958
437
603
a. Compiled fran data in Table 4, p. 12, below.
1952-57 the performance of modern inland water transport increased at
a faster rate than that of railroads or coastal shippinE but at a
slightly slower rate than that of highways.
The volume of tons originated which were carried by modern
transport on inland waterways in Communist China increased from
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4.5 million tons in 1950 to about 56.7 million tons in 1958. 1.6_/ For
the same period, performance in ton-kilometers increased from 1.68
billion tkm to about 21.3 billion tkm. 1// The average length of haul
by modern transport on the waterways of China was 376 km in 1958.
These relationships are shown in Table 4.*
Although the volume of tons originated on inland waterways in
Communist China may be expected to continue to increase in absolute
terms, it is unlikely that inland water transport will increase
significantly in comparison with other forms of transport. Continued
growth will probably result in a slightly lower share of the total
transport load for inland waterways because of the tremendous room for
expansion of railroad and highway nets and facilities. Further develop-
ment will result in more specialization in bulk movement by inland
water transport, whereas general cargo with a higher value will move
by land transport..
About 60 percent of total inland water traffic in Communist
China occurs on three rivers, the Yangtze, the Sungari, and the Pearl.
The Yangtze alone normally carries about one-third of all modern inland
water tonnage, as shown in Table 5.** Comparable data for the Pearl
and Sungari Rivers are not available. In 1953 the Pearl carried 3.7
million tons originatedl or 24 percent of the total tons originated by
modern inland water transport. The Sungari carried 1.5 million tons in
1955, or 5.7 percent of the total. The remaining 30 to 40 percent of
tons originated by modern inland water transport move on numerous lesser
rivers such as the Huai, the Min, and the Liao. Data for these rivers
are virtually nonexistent.
Estimates of the total performance of inland water transport
are somewhat more tenuous than those for modern inland water transport
alone, because data for primitive transport are much less comprehensive
and precise. The Chinese Communists announced a combined performance
by coastal shipping and inland water transport of 210 million tons origi-
nated for 1958, an increase of 37 percent above performance in 1957. lf/
It seems likely that in 1958 primitive transport carried about 70 per-
cent of all tons originated on the inland waterways of Communist China.
Because the figure for modern inland water transport in 1958 is esti-
mated to have been 56.7 million tons originated, primitive inland
water transport is estimated to have moved about 133 million tons origi-
nated. A total of 190 million tons originated moved on the inland
waterways of China in 1958 by modern vessels, tugboats and barges, junks,
and possibly sampans and rafts as well. This figure is reasonable in
view of the announced performance for 1957 as indicated in Table 6.***
* Table 4 follows on p. 12.
** Table 5 follows on p. 13.
XX Table 6 follows on p. 13.
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Table 4
Performance of Total Modern Transport and Modern Inland Water
in Communist China 2/
1950-58
Transport
Modern Inland Water Transport
Year
Total Modern Transport
Tons Originated
Ton-Kilometers
Average
Length of Haul
(Kilometers)
Tons Originated
(Million
Metric Tons)
Ton-Kilometers
(Billion
Metric Tons)
Million
Metric Tons
Percent of
Total Modern
Transport
Billion Ton-
Kilometers
Percent Of
Total Modern
Transport
1950
1951
1952
1953
1954
1955
1956
1957
1958
112.3 10/
133.6/
168.0-2/
212.012/
266.5 b/
1 280.2 12/
278.2 1/
371.3 1/
428.6 12/
733.8/
42.2 2/
57.7 2/
69.5 2/
89.6 2/
111.0 Cl
119.4 2/
118.1 El
145.4 i/
164.2 5./
230.0 g/
4.5o 1/
6.96 21/
9.41 d
15.3 d
20.5 d/
26.3 di
26.1 1/
35.41/
40.21/
56.71/
4.o
5.2
5.6
7.2
7.7
9.4
9.4
9.5
9.4
7.7
1.68 2/
2.66 2/
3.64 2/
5.63 2/
7.89 e/
10.4 2/
10.2 E/
l2.9/
15.1 g/
21.3 Ei
4.o
4.6
5.2
6.3
7.1
8.7
8.6
8.9
9.2
9.3
373
382
387
368
385
395
391
364
376
376
b. Including both physical tons and tariff tons. Tariff tons is a term used in Chinese Communist account-
ing. The exact meaning of the term is unknown, but there is very little difference between a tariff ton and
a physical (metric) ton.
c. Including both physical ton-kilometers and tariff ton-kilometers. See footnote b, above.
d. Tariff tons. See footnote b, above.
e. Tariff ton-kilometers. See footnote b, above.
f. Physical tons.
g. Physical ton-kilometers.
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Table 5
Tons Originated by Modern Inland Water Transport
on the Yangtze River in Communist China W
1952-58
Year
Tons Originated
(Million
Metric Tons)
Percent of
Total Modern
Inland Water Transport
1952
3.9
41
1953
5.3
35
1954
7.1
35
1955
8.5
33
1956
10.3
29
1957
13.4
33
1958
18.9
33
Table 6
Performance of Inland Water Transport
in Communist China 2/
1957
Modern Inland Primitive Inland
Water Transport Water Transport
Total
Per-
formance
Per-
formance
Percent
of Total
Per-
formance
Percent
of Total
Million tons
originated
138.6
40.2
29.0
98.4
71.0
Billion ton-
kilometers
21.8
15.1
69.3
6.7
30.7
Average length
of haul
(kilometers)
157.3
375.6
68.1
a. LO/
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The requirements for primitive inland water transport in Communist
China are local in nature, the average length of haul for such trans-
port being only 68.1 km compared with 375.6 km for modern transport.
Although 71 percent of the total tons originated in China are carried
by primitive transport, only 31 percent of the ton-kilometers are
so carried.
Modern inland water transport, therefore, is used primarily
for long-distance hauling, and primitive transport is used for local
transportation. Although the role of the junk is still important,
its share of transport performance is declining. Table 7 indicates
Table 7
Tons Originated by Modern Inlnnd Water Transport
and by Primitive Inland Water Transport in Communist China 2/
1954 and 1957
Total Tons
Originated
(Million
Year Metric Tons)
Modern
Tons
Originated
(Million
Metric Tons)
Primitive
Tons
Originated
Percent (Million
of Total Metric Tons)
Percent
of Total
1954
133.5
20.5
15.4
113.0
84.6
1957
138.6
40.2
29.0
98.4
71.0
that the share of the primitive sector in the total volume of inland
water transport declined from 85 percent in 1954 to 71 percent in
1957, and the volume of junk traffic decreased in absolute terms by
14.6 million tons originated. In 1958 the percentage of the total in-
land water traffic handled by junks remained near the 1957 level, -
but the absolute figure for tons originated by the primitive sector
reached an all-time high of 133 million tons originated as a result of
the "leap forward" program. As the modern fleet is expanded, the *junk
eventually will be confined to the smaller waterways and the simplest
tasks.
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B. Composition of Cargo
As would be expected, bulk cargoes not requiring fast transit
make up the greater part of inland water traffic in Communist China.
The five major commodities moved on the waterways of China, in terms of
volume, are agricultural products, mineral construction materials,
coal, ferrous metals, and timber. The most Important commodities are
agricultural products and mineral construction materials, which to-
gether comprise from 45 to 50 percent of the total volume of goods
moved by inland water transport (see Tables 8 and 9*).
Table 8
Composition of Cargo Carried by Total Inland Water Transport
in Communist China
1956
Cauunodity
Tons Originated
Ton-Kilometers
Million
Metric Tons 2/
Percent
of Total12/
Billion
Metric Tons 4/
Percent
of Total 12/
Grain
35.6
26.0
8.1
37.6
Mineral
construc-
tion
materials
33.8
24.7
2.0
9.5
Coal
12.3
9.0
2.1
9.6
Timber
5.3
3.9
1.1
5.0
Salt
5.3
3.9
1.0
4.4
Ores and
ferrous
metals
2.3
1.7
1.0
4.7
Cotton
1.4
1.0
0.5
2,1
Petroleum
0.9
0.7
0.4
1.8
Other
39.8
29.1
5.4
25.3
Total
?136.7
100.0
21.6
100.0
a. Estimated.
b.
* Table 9 follows on p. 16.
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Table 9
Estimated Composition of Cargo Carried by Modern Inland Water Transport
in Communist China
1956. and 1958
Commodity
1956
1958
Tons Originated
(Million
Metric Tons)
Percent
of Total
Tons Originated
'(Million
Metric Tons)
Percent
of Total
Agricultural products
10.3
29
17
30
Of which:
Grain
N.A.
N.A.
16.7
29.5
Cotton
N.A.
N.A.
0.3
0.5
Coal
7.1
20
11
19
Mineral construction
materials '
6.3
18
8
14
Ores and ferrous metals
1.8
5
6
11
Of which:
Steel
N.A.
N.A.
1.5
3
Timber
_0.4-
1
1.7
3
Petroleum products
1 0.4
3 '
3
5
Other
8.6
24
10
18
Total 35.4 100 56.7 100
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1. Agricultural Products
Agricultural products rank high in the inland water trans-
port of Communist China. The largest single movement consists of
grain and other products being moved from the Szechwan Basin by way
of the Yangtze River to the consumer regions along the coast. Rank-
ing second in importance to the movement of Szechwan grain is the
general movement of agricultural goods from production areas to con-
suming areas -- for example, the movement of grain and other food-
stuffs from the rural areas of KWantung down the Hsi River to Canton.
In 1956, grain and cotton accounted for 27.0 petcent of the total
tons originated by inland water transport and for 39.7 percent of the
ton-kilometers. .2...V In 1958, agricultural products may have accounted
for as much as 30 percent of tons originated by modern inland water
transport.
2. Mineral Construction Materials
Mineral construction materials, consisting largely of
sand, stone, brick, cement, and dirt, consistently rank first or
second in any ranking by volume of goods moved by inland water trans-
port in Communist China. Many of the items in this category are
produced or consumed on or very near the rivers -- sand, for example,
is dredged from a river and consumed by construction of dams or
irrigation works on the river or nearby. The movement therefore is
largely local and utilizes to a large extent the capacities of
primitive vessels. Although mineral construction materials comprised
24.7 percent of the volume of total inland water transport in 1956,
they accounted for only 9.5 percent of the ton-kilometer perform-
ance. LV In 1958, mineral construction materials again accounted for
25 percent of the volume of total inland water transport but probably
for only about 14 percent of the volume of the modern sector.
3. Coal
Coal is a commodity which traditionally is suited to
transportation by water. Many of the major coal-producing areas in
Communist China are located on navigable waterways, and in some in-
stances rail lines have been constructed to move coal to a water route.
A number of ports have been constructed specifically for handling coal
(for example, Yu-ch'i-k'ou on the Yangtze River), and several ports are
planned for construction on the Grand Canal. In 1956, coal accounted
for 9.0 percent of the tons originated by total inland water transport
and for 9.6 percent of the ton-kilometer performance. LV Coal probably
accounted for about 19 percent of the tons originated by modern inland
water transport in 1958.
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4. -Ferrous Metals
Ferrous metals, both raw materials and semifinished goods,
are moved to a large extent by inland water transport in Communist
China. Large iron and steel centers are located along the Yangtze
River at Chungking, Wu-han, Ma-an-shan, and Shanghai, and the bunk of
the ferrous materials moved by inland water transport probably is
consumed by these centers. Ores and ferrous metals accounted for
2.3 million tons originated, or 1.7 percent of the total tons origi-
nated by inland water transport in 1956, but as much as 6 million
tons originated, or about 11 percent of the tons originated by modern
inland water transport in 1958.
5. Timber
Timber is an important commodity in the traffic on most of
the inland waterways of Communist China. The most common form of
movement is in rafts of raw logs which are towed or allowed to drift
downstream from logging areas to sawmills and the consuming regions.
this movement is important on the Amur, Sungari, Ussuri, and Yangtze
Rivers and their tributaries as well as on numerous lesser rivers.
Timber accounted for about 3 percent of tons originated by modern
transport on the inland waterways of China in 1958.
6. Other Commodities
Among other commodities which are of importance in Communist
China are salt, refined petroleum products, fertilizer, and various
handicraft products. These commodities, although important enough to
list, generally are less significant in terms of shipping capacity used
than the commodities listed in 1 through 5, above. Salt and petroleum,
however, are becoming increasingly important and, as production expands,
may become major commodities in inland water transport (see Table 9*).
C. Efficiency of Operations
The chief advantage of water transport is the economy of moving
bulk goods for relatively long distances. In this respect the Yangtze
River is ideally situated, with large amounts of bulk cargoes (grain,
ores, and the like) originating in its basin and with the longest average
length of haul of any river in Communist China. In spite of these
advantages, the average cost of transportation along the Yangtze, as is
indicated in Table 10,** is higher than that of rail transport in the
Yangtze area. 2g Inland water transport has been developed to a
* P. 16, above.
** Table 10 follows on p. 19.
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Table 10
Comparative Costs of Shipping by Rail Transport
and by Tnland Water Transport
from Szechwan to Shanghai in Communist China 2/
1957
Direction
and Commodity
Route
Costs
(Yuan per Metric Ton)
Rail
Inland Water
Downriver
Rice
Ch'eng-tu to Shanghai
38.31
59.43
Rice
Chungking to Shanghai
46.12
77.46
Upriver
Steel
Shanghai to Chungking
41.40
61.23
General
cargo
Shanghai to Chungking
127.18
130.15
General
cargo
Shanghai to Ch'eng-tu
105.52
171.76
Chemical
fertilizer
Shanghai to Chungking
48.20
73.98
Chemical
fertilizer
Shanghai to Chieng-tu
40.04
94.64
much greater extent in the Yangtze area than in any other, and navi-
gation is possible on a year-round basis, so it may be assumed that
operations in the Yangtze area are more efficient than elsewhere in
China. Because the Yangtze is so important in the inland waterway
system of China and because data for other river systems are lacking,
this section is concerned with the efficiency of operations along
the Yangtze. It is believed, however, that the conclusions based on
operations on the Yangtze are generally applicable to the entire
inland waterway system in China.
On the waterways of the USSR the average unit cost of inland
water transport in 1956 was 18.2 percent less than the average unit
cost of rail transport. In Communist China the average unit cost
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of inland water transport along the Yangtze River in 1957 was expected
to be 30.4 percent higher than the average unit cost of rail transport.
This situation prevailed in spite of repeated reduction of rates along
the river and attempts by the Chinese Communists to reduce operating
costs wherever possible. The high costs appear to be due to four major
factors -- (1) the high cost and inefficient use of fuel; (2) poor
utilization of personnel; (3) underutilization of capacity; and (4) lack
of coordination, planning, and control of shipping operations. In
Table 11 some comparative data on the components of the costs of rail
and inland water shipment are given.
Table 11
Comparative Unit Costs of Shipping by Rail Transport
and by Inland Water Transport
on the Yangtze River in Communist China 2/
1956
Unit Costs (Yuan per Thousand
Combined Ton-Kilometers 12/)
Rail
Inland Water
Wages
2.19
3.11
Fuel and electricity
0.92
2.27
Supplies
0.73
0.7)-i-
Repairs
0.64
1.51
Depreciation
2.74
2.20
Other
0.45
1.14
Total
7.67
10.97
a" ..2/
b. Combined ton-kilometers (or total traffic kilometers)
equal freight ton-kilometers plus passenger kilometers.
Freight ton-kilometers and passenger kilometers are com-
bined on an equal basis.
The first factor mentioned, the high cost of fuel consumed in the
operation of vessels along the Yangtze River, has two causes: the per-
formance of about 40 percent of the shipping by vessels which burn diesel
fuel (and POL products are expensive in Communist China) LI and the
inefficient use of high-cost coal. In 1957, expenditures for fuel
amounted to 21.3 percent of the total cost of inland water transport. L/
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As increased industrialization in China makes possible lower costs for
POL and coal and as new vessels having more modern and efficient power-
plants are added to the fleet, this cost factor should be reduced sub-
stantially.
The inefficient utilization of personnel is another factor in
the high costs of shipping in Communist China. In 1957 the YNB had
employed about 56,000 persons. 1.V Approximately 20,500 persons were
engaged in the operation of vessels, 15,000 were longshoremen, and
20,500 were employed in manpgerial and other activities. Only 63 per-
cent of the labor force of the YNB, therefore, actually were engaged
in transportation activities. The 20,500 workers actually engaged in
the operation of vessels produced a total of 373,000 tkm per worker in
1956. .4V This output indicates a very inefficient allocation of re-
sources between managerial and operational personnel. The productivity
of operational personnel on the inland waterways in 1956 was 11 percent
lower than on the railroads. Lt/ China traditionally has consumed
unnecessary labor in inland water transport. Where other countries use
barge tows, in which the barges are unmanned and the tugboat crew
handles the entire tow, in China each barge has one or more men. This
unnecessary waste of manpower involves about 20 percent of the personnel
engaged in the operation of vessels. The average wage for inland water
workers is about 26 percent higher than that for rail workers, 12/ thus
indicating the cost of inefficient use of personnel compared with other
forms of transportation.
The last two factors mentioned above, the underutilization of
capacity and the lack of coordination, obviously contribute to higher
costs of inland water transport. In 1957, vessels along the Yangtze
River on the average spent nearly 50 percent of their time in port,
whereas barges spent nearly 60 percent of their time in port. 1?/ The
Chinese Communists estimate that as much as 54 percent of the time in
port is unproductive time: that is, waiting for loading and unloading,
for tugboats, for cargo, and so on. 32/ Faulty scheduling of cargo,
delays in transshipment, and inadequate harbor facilities have resulted
in an underutilization of vessel capacity, accompanied by an overtaxing
of harbor facilities.
The congestion on the waterways in 1956 and 1958 was largely
the result of inadequate port facilities and of inefficiency in the
operation of the inland waterway system. In spite of the diffi-
culties encountered, there was no evidence of an acute shortage of
vessels. Such shortage of vessels as existed was due to the fact that
large numbers of barges and other vessels were being held in port for
periods of more than 2 weeks while waiting for loading and unloading.
Lack of coordination of combined rail-water shipments probably contrib-
uted as much as any other cause to the troubles encountered in 1958.
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The Chinese Communist press has exhibited considerable concern
over improving the efficiency of shipping operations. Articles having
to do with improved techniques of vessel and port operation and cargo
handling are frequently found in Chinese technical journals, and con-
cern over operationsl policies is apparent even at the ministerial
level. Improvements, however, are being made. In the past several
years, rates, turnaround time, and costs have been reduced signifi-
cantly. It is believed that this trend will continue and that within
a reasonable time the Chinese inland waterway system will achieve
a greater efficiency than it has at present.
VI. Investment
Programs for the development of inland water transport in Communist
China have shown considerable variation in emphasis, usually in response
to pressures of requirements. Details of investment during the Second
Five Year Plan have not yet been announced, nor have the plans for 1958
or 1959 been revealed in any detail. Even the Chinese Communist First
Five Year Plan (1953-57) lacked quantitative investment statistics.
For this reason, the following section on investment deals only with
the rate and direction of investment, not with amounts invested in ab-
solute terms.
Investment in capital construction for transportation other than
railroads in 1956 was 690 million yusn.* 2/ This figure includes in-
land water transport, ocean shipping, highways, and civil air transport.
It is not possible to deduce from this information the exact amount of
investment in inland water transport, because separate data for each of
the sectors are not available. Other evidence, however, indicates that
the rate of investment in inland water transport has been considerable
and is increasing. If 1953 is taken as the base year, the index of
investment in capital construction in inland water transport stood at
272 in 1958, as indicated in Table 12.** It should be noted that in the
first 3 years of the First Five Year Plan period actual investment was
from 6 to 13 percent less than the amount programed. 12/
The allocation of investment funds in inland water transport for
the period 1950-56 was as follows: shipbuilding, 66.91 percent; harbor
development, 11.77 percent; navigation routes, 1.93 percentl' navigation
signals, 3.35 percent; dockyard construction, 2.7 percent, and other
expenses, including housing, health, and education, 13.34 percent. 112/
* About US $280 million on the basis of the rate of 2.46 yusn to
US $1. This rate of exchange is based on the yuan-sterling rate for
telegraphic transfers, which is arbitrarily established and bears no
relationship to domestic price levels.
** Table 12 follows on p. 23.
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Table 12
Index of Planned Investment in Capital Construction
for Inland Water Transport
in Communist China W
1953-58
1953
= 100
Year
Index
1953
100
1954
174
1955
235
1956
N.A.
1957
260
1958
272
The extreme emphasis on shipbuilding rather than harbor development
resulted in a greater fleet capacity than the various harbors could
accommodate and undoubtedly contributed to the congestion which,
although chronic, became severe in 1956 and 1958. The Chinese Com-
munists apparently recognized this fact, for the 1957 plan reduced
the amount allocated to shipbuilding to 55.53 percent and increased
the investment in harbor development to 21.83 percent./12/ Although
percentage figures for 1958 and 1959 are not available, the extensive
harbor development observed indicates that increasing amounts have
been allocated for this purpose.
The problem of how much the Chinese Communists are actually in-
vesting in inland water transport is further complicated by the in-
vestment of considerable sums in water conservancy projects, which
contribute substantially to the improvement of navigation. When
completed, the San-men Dam will render the Yellow River navigable from
its mouth to the dam. The development schemes in the Huai River Basin
have already contributed greatly to the navigability of that river.
Plans for regulating the Yangtze River should, if carried out, render
the river much more useful as a transportation artery. The improve-
ment of navigation by these programs is generally a secondary function
subordinate to the major considerations of flood control, irrigation,
and electric power. A tremendous amount of money and labor have gone
into construction for water conservancy in the past few years, and it
is not possible to determine what part of these inputs should be re-
garded as investment in transportation.
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VII. 'Plans and Prospects
Plans for the development of inland water transport in the Second
Five Year Plan (1958-62) in Communist China have not been announced.
Numerous programs now in progress under the direction of both the
central authority and the provincial governments point, however, to
continuous and increasing development and utilization of inland water
transport. One of the more significant programs is the dredging of
the Grand Canal to accommodate vessels of more than 2,000 GRT. When
completed, this waterway will add greatly to the potential of the entire
inland waterway system. A second significant program is the improve-
ment of river channels in Szechwan Province, particularly the Chia-
ling River. The general purpose of this development is to allow the
transportation of petroleum from Szechwan to refineries at Nanking
and Shanghai by an all-water route. This activity, however, also
should increase the flow of agricultural commodities by inland water
transport. Programs in harbor development and construction are wide-
spread and should add greatly to port capacity. The port of Chungking
is receiving extensive renovation and expansion of facilities. A
new harbor is being constructed at Ma-an-shan, and the newly constructed
port of Yu-chii-kyou is to be enlarged. it14/ Most of the bottlenecks in
inland water transport have been inadequate ports. A program of port
development such as the Chinese Communists seem to have undertaken could
add to the capacity of the inland waterway system by as much as 50 per-
cent.
Extensive construction of canals such as has been announced in the
provinces of Kiangsu and Anhwei will increase the ability of the inland
waterway system to function as local transport. As programs of water
conservancy result in deeper and more stable channels and a more con-
stant flow of water, the ability of the inland waterway system to make
substantial contributions to both the national and the local economies
will be greatly enhanced.
Continued expansion in terms of performance can also be expected.
Although the central government indicated that the requirements of the
economy for transportation in 1959 would be double those of 1958, it is
estimated that modern inland water transport will carry only about 63
million tons originated in 1959.
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APPENDIX A
METHODOLOGY
1. General
It is extremely doubtful if the Chinese Communists have precise
and accurate figures for such items as the length of various rivers;
the number of primitive or native craft; or the total amount of con-
struction materials, such as sand and gravel, moved by native craft.
Nevertheless, the Chinese are in a better position to estimate these
and similar items than anyone else. For this reason, official Chinese
government announcements have been used as source material wherever
possible. Where official data were not available or were contradictory
nr inponsistant Chinese and Soviet technical journals have been used.
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2. Performance
Data on performance of the modern sector of inland water trans-
port in Communist China before 1957 are based largely on official
Chinese announcements and are considered to be reliable. 142/ Data
for 1957 are taken from an official Soviet source. itg
Figures on total performance of both the primitive and the modern
sectors are available only for 1954 and 1957, and data for 1956 which
are used in Table 8* are estimsted from these 2 years. Estimates of
performance of the primitive sector are also available only for 1954
and 1957. For this reason, no series of reliable estimates can be
made for the total performance of the inland water fleet. Performance
of inland water transport for 1958 is estimated on the basis of an
announced performance of 210 million tons originated by all water
transport. III/ It is believed that the performance of inland water
transport increased at a greater rate than did that of coastal ship-
ping. Therefore, the performance of inland water transport for 1958
is estimated to have increased 41 percent above the level of 1957 to
a figure of 56.7 million tons originated. This figure is consistent
with the known performance of both the primitive and the modern sec-
tors of the inland water fleet in 1957 and allows for a 30-percent
increase in the coastal sector while conforming to the announced over-
all increase of 37 percent above total performance in 1957.
* P. 15, above.
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Data on performance of water transport on the various river sys-
tems are much more scanty than on total performance in Communist
China and are much less reliable. Table 5,* which gives the perform-
ance of inland water transport on the Yangtze River, is based pri-
marily on two sources. According to the periodical Shui-yun (River
Transport), transport performance on the Yangtze in 1957 totaled
13.4 million tons originated.1E/ Another periodical, Ti-li Chih-
shih (Geographic Knowledge) indicated that performance in 1953 was
5.3 million tons originated. Because the figure for 1953 represents
an increase of 35.8 percent above performance in 1952, the tonnage
moved in 1952 was 3.9 million tons originated.)22/ In 1954 an in-
crease in performance of one-third above performance for the preced-
ing year was announced, giving a total of 7.1 million tons origi-
nated. 2/ The volume moved in 1955 was given as an index of 218.66,
with 1952 as 100. 21/ Performance in 1955 therefore was 8.5 million
tons originated. Performance in 1956 increased above performance in
1955 by 21 percent, giving a total of 10.3 million tons originated.
Performance in 1958 is estimated by assuming that performance on the
Yangtze River continued at the same level in relation to the total
performance of inland water transport -- that is, about one-third of
the total tons originated on inland waterways, or 18.9 million tons
originated.
3. Commodities
Estimates of the composition of cargo moved by modern inland water
transport in Communist China in 1958 represent modifications of
Table 8,** which gives this information for all inland water trans-
port in 1956. In view of the tremendous emphasis placed on the move-
ments of iron and steel and related products in 1958, it seems reason-
able to assume that the increased movement of ferrous metals would
have occurred in the modern sector and that goods of lower priority
,(construction materials and some grain) were forced to utilize the
primitive sector. In reality the over-all composition of inland water
traffic changed only slightly, as is indicated by the announcement
that four major commodities -- grain, cotton, coal, and steel -- ac-
counted for 4o percent of the total volume of inland water traffic in
1958. 2/ This figure is very close to the 1956 total for these same
commodities as shown in Table 8. A considerable change, however, oc-
curred in the traffic carried by the modern sector. Table 9*** gives
estimates of the composition of modern inland water traffic, by
commodity category, for 1956 and 1958. This estimate is based on the
assumption that coal, ferrous materials, and grain would represent a
P.
13,
above.
**
P.
15,
above.
***
P.
16,
above.
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greater percentage of performance by the modern sector than of total
performance. The most significant change is in the relative increase
of ferrous metals and the decline of construction materials.
This change is reasonable in view of the general trend of the
economy in 1958. It is obvious from government announcements that
the shipments of materials related to production of iron and steel
increased greatly on all types of transport, and the priority given
to these goods would indicate that they tend to displace such items
as sand, gravel, cement, and other construction materials from modern
inland water transport.
Table 9* shows the estimate of the composition of modern inland
water traffic in 1958 based on the known composition of the total
inland water traffic in 1956 (with its marked similarity to 1958)
and the probable demands of the "leap forward" program on inland
water transport.
* P. 16, above.
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