Inadequate transportation capacities that have hindered China's economic growth for over a year will be much improved in the second half of this year, according to the government.

The country's water carriage and highway transportation capacities will be sufficient to meet market demand, but the railway transportation problems might persist for a longer time, said sources with the State Development and Reform Commission.

China added 2 million tons of water carriage capacity this year, which will help relieve the huge market demand.

The commission predicted this year's domestic freight charges would decrease because of the enhanced transport capacity and the drop in international transportation expenses for bulk cargo.

The shipment of main river ports is expected to increase 16 percent to 2.85 billion tons, the sources said, quoted by the China Securities Journal.

Overcapacity is expected in the highway transportation market this year as the country lowers highway charges for large trucks.

The railway freight volume would increase 7.3 percent year-on-year to 2.33 billion tons this year. But pressure in northeast, northwest and southwest China will remain steady due to the slow development in railway construction and shortage of trains.

According to the commission, the transportation crunch was relieved to some extent in the first half of this year, thanks to reduced transportation demand.

The country's total freight volume waiting to be transported went up 8.9 percent in the first six months, 5.9 percentage points lower than a year earlier.

Source: Xinhua