China billionaire Xu Changhua’s Transfar Group plans by 2022 to invest $15.4 billion in roads to improve the country’s logistics infrastructure, the government-published China Daily reported today, citing Xu. 

“We have signed contracts with more than 80 domestic cities to build road ports, and at least 30 cities’ road ports will be put into operation in the end of 2016,” Xu told the newspaper.

Xu founded a small family workshop to produce liquid soap and detergent products in 1986 when he was 52. It grew into Transfar Group, now active in chemicals, logistics, agribusiness and investments. 

Listed firm Zhejiang Transfar, which is majority owned by Xu's Transfar Group, said last year it would pay $3.1 billion in stock for the family’s Transfar Logistics Group to boost its logistics business.  Transfar Group also controls listed Zhejiang Xinan Chemical Industrial Group, which makes agricultural chemicals.

China’s government supports road construction linked to logistics as a means to improve the industry’s efficiency. Logistics costs in China can be more than double those in developed economics when measured as a percentage of total production expenses, the newspaper said, citing Transfar vice president Zhou Shengxue. The country’s e-commerce boom has spurred new investment in a logistics and transportation industry that has for years attracted investments by the likes of Fedex in connection with its large role in global trade.

Xu's son Xu Guanju and Xu Guanbao are chairman and vice chairman, respectively, of Transfar Group and Zhejiang Transfar. Transfar is headquartered in the eastern Chinese city of Hangzhou.