Ningxia Shuanghua Enterprise Agrifood Transportation Co., Ltd
After the Spring Festival, in the eastern suburbs of Zhongwei City, Ningxia Ruimingzhong Fertilizer Co., Ltd. found its hospital and warehouse overflowing with chemical fertilizers. A company official told a reporter that since July last year, railway transportation capacity has remained tight, making it extremely difficult to secure train cars. Over 30,000 tons of fertilizer have been stuck and the company was recently forced to halt production.
It is reported that in order to ensure sufficient agricultural fertilizer supply, the Ministry of Railways previously issued a notice requiring all railway bureaus to prioritize the transport of grain and fertilizer under the "four priority" principle. However, according to an official from Tianrui Company, the Lanzhou Railway Bureau's Operation Department explained that although agricultural resources are prioritized, companies must submit plans in advance. Only those with approved plans can get wagons. Otherwise, there's no way to move the goods.
When the company reviewed the wagon application plan submitted by the Ningxia Autonomous Regional Economic Commission’s Operations Department at the Lanzhou Railway Bureau, they were shocked to find that small-scale fertilizer companies like theirs had not been included in the plan. The company then contacted the Ningxia Autonomous Region Economic Commission’s Operations Department, but officials clearly stated that due to limited railway capacity, they could only guarantee transportation for 30 key enterprises as per government instructions. They had no authority to assist smaller companies.
Ningxia Rui Company currently has an annual production capacity of 60,000 tons and is considered a backbone of agrochemical enterprises in Ningxia. For over a decade, its products have enjoyed a good reputation and have been widely sold across Xinjiang, Jiangxi, Shandong, Hubei, Shaanxi, and Guangdong. However, since the second half of last year, the tight rail freight situation has caused major delays in transporting their fertilizers, leading to significant inventory buildup and an inability to fulfill sales contracts.
Currently, three southern customers have requested refunds and are demanding economic compensation. Under normal circumstances, the company expects to ship at least 1,000 tons of compound fertilizer monthly. If each standard car carries 60 tons, the company would need 16-18 wagons per month. But in more than seven months, they have managed to arrange only two trains to Xinjiang, shipping just 120 tons of drip-fertilizer and compound fertilizer. This situation has severely impacted their business and financial stability.
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