China's overland Silk Road and Maritime Silk Road Thread

[Dolcevita]

More container news. Air Cargo is hurting

China, Kazakhstan aim to double container traffic to Europe via new route[/SIZE]
Eugene Gerden, Special Correspondent | Aug 25, 2015 10:05AM EDT

China and Kazakhstan are working to more than double containerized rail traffic bound for Europe via the launch of the Trans-Caspian international transport route connecting China, Kazakhstan, Azerbaijan, Georgia and Turkey.

Both countries plan to increase volume on the Almaty-Lianyungang route from the current 100,000 twenty-foot-equivalent units per year to 250,000 TEUs by the end of this year, said a Kazakh Ministry of Foreign Affairs spokesman.

The launch is scheduled for the middle of September and the transit time between China and Kazakhstan on the new route will be 6 to 7 days.

Askar Mamin, head of the Kazakhstan Temir, the national railway company of Kazakhstan, said the growing cooperation between Kazakhstan and China since 2012 has increased container traffic moving to Europe from China via Kazakhstan twelvefold. He declined to provide exact figures.

Kazakhstan has made a concerted effort to be a corridor for containerized goods, having

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to provide more trains for a China-Europe service while

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to handle containers originating in China.

China-Europe rail services continue to grow in popularity with shippers

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between the low costs and slow transit times of water services and the express and exorbitantly priced cargo airlines.

The Chinese government also plans to increase containerized rail traffic to Europe by wringing more efficiencies from the International North–South Transport Corridor, which is the ship, rail, and road route for moving freight between India, Russia, Iran, Europe and Central Asia.

Contact Eugene Gerden at [email protected].

 

[broadsword]

This route slashes delivery days by up to 2/3 compared with shipping and the traditional rail route. Time and cost will be reduced for trade in this example of an overland silk route.

European products reach west China by train

September 09, 2015


A Chengdu-Europe freight train carrying 41 containers filled with European beers, drinks, biscuits and other products arrived in Chengdu at 5 p.m. on Sunday.

It is the first time that Chengdu-Europe express train has realized the return services, which marks another major breakthrough in the construction of the International logistics channel in west China. It also provides a new path for trade and economic exchanges between China and Europe.

"Within this year, French red wine, Polish beef and German vehicles will be transported to China by the Chengdu-Europe express rail cargo service," said Chen Zhongxiong, head of Chengdu Logistics Development Office.

As one of the important channels of China's Belt and Road initiative, Chengdu-Europe express train started operation on April 26, 2013. The train starts from Chengdu, the capital of western China's Sichuan province, passes through Kazakhstan, Russia, Belarus and ends at Lodz, Poland, the new transport hub in continental Europe, traveling a distance of 9,826 kilometers.

As of Aug. 22, the Chengdu-Europe express train had transported goods with total value of 693 million USD. "From Chengdu to Lodz it takes about 11 days, one-third of the time of traditional shipping and rail transportation. After the goods arrive at Lodz, they would be allocated to other European countries in 1 to 3 days," said Wan Wenjun, vice general manager of Chengdu-Europe express rail cargo service.

 

[broadsword]

Benefits of the Thai-China railway are highlighted.

NANNING, Sept. 20 (Xinhua) -- Talking with his business partners, Thai businessman Boonyong drew some lines on a map while elaborating on his envision of trade with China.

The lines are part of a planned railway linking China to Thailand which is scheduled to be completed in three years.

"I am looking forward to a lower transport costs," said Boonyong, who sells rice to China at an annual profit of over 50 million yuan (7.86 million U.S. dollars).

"Currently our products are delivered by road and sea which takes about three and five days respectively," he said. "It will only take us some 18 hours to send rice to China by train, with the freight cost lowered to about one third of that of road or sea transport."

Over 840 kilometers from Kunming in Yunnan Province, the railway connects Thailand's Nong Khai province, capital Bangkok and Rayong province.

Construction of the railway will start by the end of this year, said Thai Deputy Prime Minister Tanasak Patimapragorn during the China-ASEAN Expo in the southern Chinese city of Nanning.

In the future, this railway would be an important mode of transport of goods and people between China and Thailand, he told Xinhua.

The vice prime minister said railways can lead to special economic zones. The line between China and Thailand will fuel economic development of Thailand and its neighboring countries.

Chinese cargo can also be more conveniently transferred to other parts of Asia, Africa, and Europe through Thailand, which can help the Chinese companies reduce their transportation cost, he said.

According to Yang Xiuping, secretary-general of the ASEAN-China Center, the railway will help tourism in Southeast Asia. Statistics from China Tourism Academy showed 11 million Chinese tourists travelled to Southeast Asia in 2014. The railway is expected to bring about 2 million more each year.

According to China Railway Construction Corporation Limited, the round-trip fares from Kunming to Bangkok will be around 700 yuan, around half or one third of the airfare, and the freight fees are equivalent to one ninth of the cost by air.

The railway, running through Laos before entering Thailand, is also considered a blessing for Laos.

Khammanh Siphanhxay, researcher with Lao Academy of Social Science, said Laos, with its underdeveloped infrastructure, is in urgent need of railroads.

However, the line will pass through some mountainous areas in Thailand and Laos, which will add difficulties to the construction. However, he said, China has plenty of experience in building railroads in areas with more complicated terrain.

The researcher also said that some areas along the route are underdeveloped, so distribution of the profits will also be an important issue.

The environment will also be a concern for people living along the railway line, he added.

 

[Jeff Head]

This route slashes delivery days by up to 2/3 compared with shipping and the traditional rail route. Time and cost will be reduced for trade in this example of an overland silk route

It is the first time that Chengdu-Europe express train has realized the return services, which marks another major breakthrough in the construction of the International logistics channel in west China. It also provides a new path for trade and economic exchanges between China and Europe..

This is pretty amazing news...and a boon to China and its trade with Europe.

Bully for the PRC. The effort going into this overland route for trains, trucks, etc., etc. is an amazing accomplishment.

I have been watching some of the reports on the construction that has been necessary and it is simply amazing.

 

[Qi_1528]

I have been watching some of the reports on the construction that has been necessary and it is simply amazing.

There's serious talk of extending the railway from Lhasa down into Nepal and (possibly) India. It's so ambitious, it's hard to believe. But given what the Chinese have been able to do in recent years... They might just pull it off.

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[Jeff Head]

There's serious talk of extending the railway from Lhasa down into Nepal and (possibly) India. It's so ambitious, it's hard to believe. But given what the Chinese have been able to do in recent years... They might just pull it off.

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And that only makes good sense.

With the main trunk line across Asia and into Europe (a herculean effort in itself) they will then build important spur lines down into other markets.

 

[mr.bean]

I

There's serious talk of extending the railway from Lhasa down into Nepal and (possibly) India. It's so ambitious, it's hard to believe. But given what the Chinese have been able to do in recent years... They might just pull it off.

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heard about that project too, the china-nepal part is almost a sure thing. But india is an obstacle to extending all the way to india. India has NOT officially endorsed the OBOR initiative and it is wary of china increasing its influence anywhere in south asia and nepal is india's geostrategic territory. If this railway is built connecting china-nepal-india, china will further eclipse india and New Delhi wouldn't agree to that.

 

[Blackstone]

This is pretty amazing news...and a boon to China and its trade with Europe.

Bully for the PRC. The effort going into this overland route for trains, trucks, etc., etc. is an amazing accomplishment.

I have been watching some of the reports on the construction that has been necessary and it is simply amazing.

And it makes sense for US to get in on the action and work with China to develop infrastructure in Central/South Asia and East/Central Europe. Everyone wins when Washington and Beijing work together as partners.

 

[taxiya]

And it makes sense for US to get in on the action and work with China to develop infrastructure in Central/South Asia and East/Central Europe. Everyone wins when Washington and Beijing work together as partners.

That is a good wish me with it, it could have been a reality by now if Obama didn't start his term with his "pivot" although blaming him solely is unfair too. Therefor I see the wish has no chance in the near future (5-10 years), think about the following for a start.
# TPP is designed with its rules to exclude China.
# Washington actively persuaded her allies to not to join AIIB which is the main vehicle to carry out OBOR.

Washington is not able to change the course in time to contribute and enjoy the outcome of OBOR considering the fact of her inability to take actions on her own domestic matters like budget, debt cap, to name a few. The difficulty to change the political course regarding a "rival" is a undertaking of many magnitudes than purely domestic matters.

 

[Qi_1528]

I

heard about that project too, the china-nepal part is almost a sure thing. But india is an obstacle to extending all the way to india. India has NOT officially endorsed the OBOR initiative and it is wary of china increasing its influence anywhere in south asia and nepal is india's geostrategic territory. If this railway is built connecting china-nepal-india, china will further eclipse india and New Delhi wouldn't agree to that.

Yeah. There's the camp in India which wants to build a win win relationship with China, and embrace projects like this, and then there's the camp which is frightened and/or wary of China and its intentions. There doesn't seem to be a clear winner yet. The same debate looks to be going on in every country in Asia. Even the Philippines might elect a pro engagement and negotiation government next year.

On the hand, I read at about the time Modi visited China this year, that he was in favour of the railway connection to India through Myanmar (I think it was Myanmar) I mentioned earlier. He's not being so much the extremist in international relations I feared he might be. Domestic matters is a different story, but that's for the Indians to sort out themselves. He clearly trying to keep to the old non aligned ideology.