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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 completely filled with chemical fertilizers. A company official told a reporter that from July last year to now, railway transportation capacity has remained extremely tight, making it nearly impossible to secure a freight wagon. Over 30,000 tons of fertilizer remain stuck, forcing the company to halt production recently. It is understood that to ensure sufficient agricultural fertilizer supply, the Ministry of Railways issued a notice earlier, requiring all relevant railway bureaus to implement the "four priority" principle, prioritizing grain and fertilizer transportation. However, according to the company’s representative, the Lanzhou Railway Bureau's Operation Department explained that although agricultural resources are given priority, companies must submit transport plans first. If not, there is no way to get a wagon. When they checked the wagon application plan from the Ningxia Autonomous Regional Economic Commission’s Operations Department, they were shocked: small-scale fertilizer companies like theirs were simply excluded. The company also approached the Ningxia Autonomous Region Economic Commission’s Operations Department, but the official clearly stated that due to limited railway capacity, the commission could only prioritize transport for 30 key enterprises at the regional level as per government instructions. There was nothing they could do for smaller firms. Ningxia Rui Company currently has an annual production capacity of 60,000 tons and is considered one of the backbone agrochemical companies in Ningxia. For over a decade, Tianrui’s agrochemical products have enjoyed a strong reputation and have been widely sold in Xinjiang, Jiangxi, Shandong, Hubei, Shaanxi, and Guangdong. However, since the second half of last year, due to the tight rail freight situation, the company has struggled to ship its 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. A company official told reporters that under normal conditions, the company plans to ship at least 1,000 tons of compound fertilizer monthly. At 60 tons per standard wagon, this would require 16–18 wagons each month. But over the past seven months, the company managed to secure only two wagons for shipments to Xinjiang, transporting just 120 tons of drip-fertilizer and compound fertilizer. This severe disruption has placed the company in a difficult position, affecting both its operations and customer relations.

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