Starting from the concepts of logistics and third-party logistics, this paper analyzes the essential differences between logistics and transportation, discusses in detail the advantages and disadvantages of developing third-party logistics in railway transportation, and emphatically expounds the breakthrough point and countermeasures of developing third-party logistics in railway transportation.

With the rapid development of expressways, not only the market share of railway passenger transport is gradually decreasing, but also its share of obvious competitive advantage in the freight market is shrinking. The position of "iron boss" has been strongly challenged by several other powerful people in highway and transportation. On the other hand, after China's entry into WTO, railway transportation, especially railway freight, will also come from the competition in the international freight market. In this case, how can railway freight meet the challenges from all sides, how can we take the initiative in the fierce market competition and seek survival and development?

Looking at the development process, laws and trends of transportation in developed countries, developing third-party logistics is the best choice for railway freight development and a powerful weapon to deal with market competition. Although there are some unfavorable factors in developing third-party logistics in railway transportation, there are also many favorable conditions. As long as railway transportation gives full play to its positive favorable conditions and overcomes unfavorable factors, it will certainly make a difference in developing third-party logistics.

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