With this onslaught of new entrants and this level of disruption, commercial transportation companies — particularly established, high-asset businesses — can no longer expect to be insulated from competition. Yet only 28 percent of the industry can claim a high level of digitization today, according to a recent survey by PwC , reflecting a troubling level of reluctance among carriers to fully embrace new technologies and business models. One common refrain from these players is that they don’t need to invest in new systems because their traditional rivals don’t. Another rationalization is that customers are not demanding sophisticated technology from their carriers.
With limited industrial capacity in Tibet, the Tibetan economy heavily relies on industrial products from more developed parts of China. Transport of goods in and out of Tibet was mostly through the Qingzang Highway connecting Tibet to the adjacent Qinghai province, which was built in the early 1950s. The length and terrain have limited the capacity of the highway, with less than 1 million tons of goods transported each year. With the construction of the Qingzang railway, the cost of transportation of both passengers and goods should be greatly reduced, allowing for an increase in volume—the cost per tonne-kilometer will be reduced from RMB to RMB. It is projected that by 2010, million tons will be carried to and from Tibet, with over 75% carried by the railway.  This is expected to help support the Tibetan economy.