China's Propaganda Spin on Emission Reductions

The Ministry of Industry and Information Technology reported that from May 27 2010, Beijing would no longer provide financial support, or approve projects that expand production capacity in industries already marked by excess capacity, high levels of energy demand and pollution.

It would appear that government demands for cuts in production and energy emissions would be timely for China's steel mills in the fourth quarter of 2010, especially as an excuse for delaying deliveries and the placement of new orders.

Inner Mongolia produced 602 million tons of coal for 2009.

Production increased nearly 19% in the 1st half of 2010 to almost 338 million tons and is expected to reach 730 million tons for 2010. That is a 158 million tons increase in 12 months or more than 120%.

Due to capacity restrictions, railways carried less that 40% of Inner Mongolia's coal (200 million tons) in 2009, diverting the excess 361 million tons onto road transport.

Based on 2010 capacity, railways will carry just 33%, leaving 490 million tons to be transported by road. That translates into an estimated 1.4 million tons of coal per day being transported on the coal highways.  By the time the proposed new railways are in operation more than two years from now, the Inner Mongolia - Beijing highways will be in permanent gridlock with coal trucks alone. Even diverting a substantial tonnage of coal traffic onto the toll roads and freeways would not be an option.
  
Inner Mongolia's coal production increased 18.79% in the first half of 2010 year on year, reaching 337.78M tons and is estimated to reach 730 million tons for full year 2010.

Traffic jams were occurring on the 483 km Hohhot-Beijing highway during 2009 following the closure of coalmines throughout Shanxi. The rapid rise in coal production in Inner Mongolia triggered a massive demand for thousands of coal trucks to haul the coal to Hebei and Beijing.

Traffic density and loading already exceed the highway's maximum designed capacity by 300% and traffic continues to rise.

From March 2010, road traffic on the highway had been slowing and during April, May and June 2010, drivers were reporting increasing lengthy delays and coal truck were taking up to 20 days to travel the normal 3 days journey.

Beijing was very well aware of the looming crisis in the 3rd quarter of 2009 and watched the situation worsen following winter into April, May June, and July.

Chinese media were instructed not to report on the escalating problem until August 14, when modern communication technology alerted the outside world to the 150 km traffic jam. State media reported the problem 9 days later.

Despite state media reports and government statements that the gridlock was over, it has since taken the form of a continuous rolling blockage as repairs to some parts are completed, and work starts on others and the jams begin again.