The city of Ordos in North China's Inner Mongolia autonomous region is upgrading its logistics distribution network to improve distribution and delivery efficiency and reduce carbon emissions.

From 2018 to August 2021, Ordos invested a total of 57.27 million yuan ($8.59 million) in the operation of new energy distribution vehicles and the construction of distribution centers and terminal distribution stations, according to Zhang Shengjiang, chief of the Transportation Service Department of the Ordos Municipal Transportation Bureau.

Zhang added that new energy distribution vehicles with an operating mileage of more than 4,500 kilometers were given an operating subsidy of 2 yuan per kilometer, and up to 10,000 yuan for a single vehicle.

Moreover, Ordos solved problems related to urban distribution vehicle traffic restrictions by facilitating the passage of new energy trucks and electric tricycles in urban distribution, and setting up special parking spaces and charging piles for new energy distribution vehicles.

New energy distribution vehicles parked in parking lots for less than 2 hours will not be charged, and those parking for more than 2 hours will enjoy a 50 percent discount.

"A series of measures introduced by the government has accelerated the elimination of the company's fuel distribution vehicles," said Liu Zhang, head of the Bozhong logistics distribution center.

Liu said that after promoting the use of new energy distribution vehicles, the average transportation costs of his company dropped from 2,000 yuan per month to less than 300 yuan per month.

In August 2021, Ordos became one of 16 cities across the country to be recognized as a "Green Freight Distribution Demonstration City.” 

Dongsheng and Kangbashi districts, both key green logistics experimental areas in Ordos, currently have 85 new energy distribution trucks and 70 new electric tricycles, accounting for 62 percent of all such vehicles in Ordos.