(Yicai Global) July 3 -- China's government has set out plans to boost railway cargo by 1.1 billion tons or 30 percent by 2020 and reduce road freight as part of an environmental drive.

The country also aims to boost rail cargo volumes by 500 million tons or 7.5 percent in the next two years, the transport ministry said in a statement.

The department will implement measures to boost rail capacity, upgrade water transport systems, better manage road freight and promote green logistics across cities nationwide, Vice-Transport Minister Liu Xiaoming said.

Liu expects China's haulage sector to reduce emissions of nitrogen oxides, particulate matter and nitrogen dioxide by 1.1 million tons, 55,000 tons and 100 million tons, respectively, over the next three years to support China's anti-pollution campaign.

China faces challenges in adjusting its transport mix, Liu said, adding that as the country seeks to cut road freight volumes, it should also take steps to safeguard the healthy development of the road freight industry and help companies gain access to capital and land as part of the shift to rail.

Editor: William Clegg