Intelligent Network and Automatic Driving Reduce Cross-border Logistics Costs

Chongqing- The first intelligent connected vehicle (ICV) cross-border logistics project landed recently in Western (Chongqing) Science City with a strong application to the New International Land-sea Trade Corridor (ILSTC).

The project was created Hetuyuxing (Chongqing) Technology Co., Ltd. empowers ICV technology. Incubated by the Western China Science City Innovation Center of Intelligent and Connected Vehicles (WICV),  It aims to better enable the implementation and operation of commercial applications, from cross-border trunk logistics to intelligent ports. 

This year, Chongqing proposed to build a world-class intelligent connected new energy vehicle (NEV) industry cluster, which will gather advanced elements of ICVs and NEVs.

The industrial chain, supply chain, and innovation chain of intelligent connected NEVs will possess strong international radiation capacity. Cross-border ports and logistics play a pivotal part in those application scenarios. 

Reducing logistics costs by 27% and labor costs by 70%

Currently, cross-border logistics are plagued with problems, including the restriction of cross-border passage and high driving costs, mainly caused by the shortage of truck drivers and the rise of labor costs. 

To tackle the issue, automatic driving in cross-border ports serves as an effective way to improve the efficiency of customs clearance. With the wide application of unmanned equipment in all logistics steps, autonomous trucks and tractors can work 24 hours a day in ports, mining areas, and closed logistics parks. 

Thanks to the intelligent network and automated driving technology, the total logistics cost is expected to decrease by 27%, among which the labor cost can drop by 70%. Compared with ordinary diesel heavy trucks, the L3 automatic driving heavy trucks can save 136,000 yuan per year, while the L4 saves 224,000 yuan.

In L3–L4 vehicles, driving task is performed primarily by an automated driving system. Automation mode permits one to engage in non-driving-related tasks, necessitating continuous vigilance and attention.

With the ILSTC as the core, the company is committed to establishing a comprehensive smart logistics service cloud system, creating a smart transportation system for cross-border trunk logistics and ports in a bid to simplify customs clearance processes and improve port efficiency.

"With the development of the intelligent connected new energy vehicle industry, we will integrate the advantageous resources in the industry with Chongqing as the core base," said Wang Jintao, the company's chief executive officer.

Wang continued, we will work with the Association of Southeast Asian Nations to focus on the ILSTC, building a smart transportation system for cross-border trunk logistics and ports, and contributing to Chongqing's intelligent connected vehicles industry.

(Tan Jingyue, as an intern, also contributed to this report.)