Chapter 88

The transportation in Kogawa City is unparalleled by other regions. During this period, the national road network was underdeveloped, and the railway was the main artery. Although county and city leaders had their own cars, due to the poor road conditions, they generally took the train to attend meetings in the province, rarely traveling by car. The poor road conditions not only made the car journey bumpy but also time-consuming and labor-intensive. In comparison, the train was much more comfortable.

Xiaoyuanhang said that when he referred to the well-developed transportation in Kogawa, he meant the railway. Kogawa is the intersection of the Liaosong Railway, the Koping Railway, and the Kuan Railway, serving as a transportation hub in the southeastern part of Songjiang Province and the gateway to Changbai Mountain, with a strategically important position. During the Liberation War, the total length of Kogawa City was only 1.5 kilometers, and the urban population was less than 30,000. Because of its strategic importance as a transportation hub, the Nationalist Party stationed a full-strength division with over 10,000 troops here. The People's Liberation Army fought a fierce battle for seven days and nights to liberate Kogawa, which clearly shows the importance both sides placed on this area.

The Liaosong Railway was established in 1927, initiated by General Zhang Xueliang, the then Inspector of the Eastern Border. After more than 50 years of development, Kogawa Station, which initially had only four railway lines, has grown to have 23 lines, handling 72 pairs of trains daily and an average of over 2,300 vehicles per day, making it one of the 38 major marshalling stations in the country. A large amount of goods are transported to Kogawa from all directions via the railway, and after being reorganized at Kogawa Station, they are sent to their destinations in all directions, making Kogawa a distribution center for goods and commodities in the southeastern part of Songjiang Province.

"Developing transportation has a certain role in economic development, but the most important thing is attracting investment. Only with a large number of enterprises and merchants investing in Kogawa can the economy be promoted. The advantage of transportation is not decisive!" Guo Xiaoquan, as Xu Wenbo's secretary, had a certain understanding and ideas about the current economic situation in Kogawa. He couldn't help but ask when he heard this.

Xu Wenbo didn't have a clear idea of what the advantages of transportation could ultimately achieve. The reform and opening-up had just begun, and everything was being explored step by step. The cadres trained under the planned economy system instinctively thought of building factories and large factories when it came to economic development. Only by producing and selling products could they earn money. Without factories and products, there would be no profit, and the economy could not be promoted.

Xu Wenbo basically agreed with Guo Xiaoquan's view. Discussing economic development at the dinner table was just an impromptu topic. Seeing that Xiaoyuanhang spoke confidently and had a good understanding of economic development at such a young age, he was quite impressed. He also wanted to hear what this young railway conductor had to say about economic development, as it might give him some inspiration. Guo Xiaoquan's question was also what he wanted to ask, so he couldn't help but look at Xiaoyuanhang, eager to hear his response.

Xiaoyuanhang said, "I don't deny the importance of attracting investment, but a region or city must determine its economic development direction based on its actual situation. As I mentioned earlier, Kogawa is a city with a severe water shortage, which means heavy industry cannot be established here. Our transportation advantage is extremely important because it is a prerequisite and foundation for developing a trade economy. Therefore, Kogawa can only achieve rapid economic development by prioritizing the development of a trade economy!"

Xiaoyuanhang's proposal of a trade economy was well-founded. Due to Kogawa's unique geographical location and well-developed transportation, the Songjiang Provincial Government approved the establishment of a provincial economic and trade zone in Kogawa in 1988, providing various preferential policies, which rapidly promoted Kogawa's economic development.

"Wrong! What is trade? In simple terms, it's buying and selling, buying and selling on credit! Without products, the economy cannot grow. The money is still the same, just a matter of whose pocket it ends up in. This is speculation, not economic development!" Guo Xiaoquan was very agitated and clearly found it hard to agree with Xiaoyuanhang's view.

Xiaoyuanhang smiled slightly and said, "Industry and infrastructure are means of economic development, but trade and finance are also important means. Does Hong Kong have large industrial enterprises? No! Does it have a pillar industry? No! But why is Hong Kong so rich? It is because it relies on the advantages of an international free port to develop international finance and trade, thus rapidly growing!"

"Uh!" Guo Xiaoquan was left speechless by Xiaoyuanhang's words. The example was very convincing, leaving him with no way to refute it. Xu Wenbo seemed to also find something to ponder in Xiaoyuanhang's words, falling into deep thought...

Xiaoyuanhang continued, "I use Hong Kong as an example, which might seem too distant, and some might say it's capitalist and different from our system. Let's talk about the ten-thousand-yuan households in our area. Think about it, how many of the ten-thousand-yuan households in Kogawa made their wealth through production? Most of them accumulated wealth quickly through business. Although they don't have products in their hands, they maximize the value of others' products through trade, thereby benefiting themselves!"

At this point, Xu Wenbo understood Xiaoyuanhang's point. He had to admit that Xiaoyuanhang's analysis of Kogawa was thorough and accurate, but the term 'trade economy' was too broad. Developing a trade economy is a good idea, but the key is what kind of trade to develop and how to develop it.

"Xiaoyao, you say Kogawa needs to develop a trade economy. Given Kogawa's current situation, where should we start?" This time, Xu Wenbo couldn't help but join the discussion.

"Start with the development and regulation of the nut market!" Xiaoyuanhang had already thought this through and spoke with great confidence. The nut market in Kogawa would become the largest nut processing and trading center in Northeast China and even the country over the next ten to twenty years, generating billions of yuan in annual output. Even in its early stages, Xiaoyuanhang conservatively estimated that the annual output would be in the tens of millions of yuan.

As the Deputy Secretary of the Municipal Committee in charge of the economy, Xu Wenbo was familiar with the nut market, but he had never thought about how it could significantly promote Kogawa's economic development. The nut business in Kogawa was mainly operated by the local produce company, and although many individuals were also involved in this business, it was not significant. Could such a disorganized market promote Kogawa's economic development? He was very skeptical.

"Why start with the nut market? What impact can it have?" Despite his skepticism, Xu Wenbo still wanted to hear Xiaoyuanhang's explanation and couldn't help but ask.

Xiaoyuanhang said, "Let's analyze this simply. Pine nuts and walnuts grow in the vast Changbai Mountain area, not in Kogawa. So why is Kogawa's nut market so prosperous? There are three reasons: First, Kogawa's unique geographical position as the gateway to Changbai Mountain. Second, Kogawa's well-developed transportation network. Third, Kogawa has a direct railway line to the coastal port, allowing for combined rail and water transport, which facilitates the export of nuts to overseas markets!"

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