Research and Markets has announced the publication of its China Highway Industry Report, 2007. The figures are fascinating.

China highway transportation in the first nine months of 2006 continued to increase at a rate of over 8.5% compared to the same period of 2005. The freight volume and freight turnover volume increased 8.9% and 11.6% separately. The overall profitability of highway industry was further strengthened, and the operating performance of the major listed companies beat or even exceeded the expectations generally.

But, generally speaking, the report states that China expressway development is backward.

Compared by population density, China’s expressway mileage every 10,000 population in 2005 was 10% of that of the United States and 25% that of Germany.

In the United States the expressway has connected all the cities with a population of over 50,000.
In Germany the expressway has connected all the cities with a population of more than 50,000 and 90% of cities with a population of less than 50,000.
In Japan the expressway has connected all the cities with a population of more than 100,000.
In China, the expressway just covers provincial capital cities and cities with urban populations of more than 500,000. In the medium cities with a population of more than 200,000, only 60% of them are connected by an expressway.
Meanwhile, with the rapid increase of automobile penetration rate and the fast development of external logistics, the expressway industry produces great opportunities for expansion. In the near future, the risks of the expressway industry are mainly from the rise in oil prices and the fuel tax that will be probably imposed.