MAINLAND China's intermodal rail system holds the key to opening the country's interior to increased export production, says APL north Asia president Ken Glenn.

Speaking at the Western Area International Logistics Channel Forum in Chongqing, Mr Glenn said expansion of freight rail service will attract increased investment to western and central China, regions coveted for their lower manufacturing costs.

"It is our belief that with expanded infrastructure, the rate of investment in these regions will accelerate and grow at a faster rate than China overall," he told an audience attending the China Chongqing International Investment and Global Sourcing Fair.

"APL is justifiably proud of its history of intermodal innovation and service," he said. "We believe we're uniquely qualified to bring that experience to China, and we will look for opportunities here to connect China's interior with the coastal regions."

Mr Glenn expects manufacturers will increasingly move west as capacity, frequency and the quality of rail connections between the interior and China's seaports improve.

"Intermodal rail has the most promise and potential to address the long-distance logistics and transportation needs of the country's export manufacturers."