Table 1.5 summarizes the rapid growth in road freight traffic. Transportation
accounts for the largest component of total logistics costs, at around 55 percent
(RMB 2.1 trillion),followed by inventory storage costs (RMB 1.2 trillion) and
management costs(RMB 500 billion) (Logistics in China. 2008). Gasoline and toll
payments are the two main fees in transportation cost. The proportion of gasoline
in the total transportation cost was 25 % in 2004, increasing to 40 % in 2008 with
the rise in oil price (Xu 2009). However, the greatest cost is not from gas or oil but
rather in paying tolls