Research On Logistics Development Strategy Of Datong-jungar Railway Company

Aiming to meet the challenges of increasingly fierce competition in the railway market,China National Energy Group(the former Shenhua Group)have promulgated Principles of Market Opening-up on Shenhua Transportation which highlights the specific rules,namely,“Efficient cooperation,Synchronous operation,Guaranteed self-production and Dynamic market”.Also,the strategic management is “Opening North Line,Regulating Zhunchi Line,Guarding Shenshuo Line and Managing Shuohuang Line”.It has been proved that the principles exert positive influence saliently.Therefore,the key to open up the transportation market is to improve the effective supply,competitive strength,service quality and the efficiency of coordination.Overall,the overarching problem for Datong-Jungar Railway Company(DRC),one subsidiary of Shenhua Group,is how to seize the opportunity in the development of logistics industry,build up its core competence,and draw up strategic plans.thereby providing company with scientific evidences for its decision-making.This paper introduces the current situation of DRC and the fieldwork conducted,in which the surrounding railways and logistics market around DRC are examined.The research adopts two methods,environment analysis and SWOT-PEST to illustrate the internal and external environment of the company.The result shows that during the development of the Datong-Jungar Railway,coal transportation plays the major role,while the others occupy only a small part.Moreover,in the surrounding logistics market,even though more chances appear,the threats cannot be ignored.Based on the results,almost all opportunities belong to national railway.For one thing,compared with DRC,national railway is equipped with a big amount of manpower,financialresources and material resources.For another,the traffic flow on DRC in the direction of Datong is controlled by Datong-Qinhuangdao Railway.It indicates that to develop logistics still needs the cooperation with national railway.In addition,the analysis also stresses that some chances may also be taken by haulage where the quality of customer service and working efficiency are higher than the railways.In conclusion,Strategy SW and is what DRC suggested to choose,which implies that the company should play its part in coal transportation,and construct close rapport with the big league of logistics.Also,through offering qualified service and low price,DRC can build its brand and win the market.