China-Europe Freight Train Service "Witnesses Accelerated Development"

China-Europe freight train service sees rapid growth

China-Europe Freight Train Service "Witnesses Accelerated Development"
Earlier this month, a China-Europe freight train, with a lengthy whistle, departed from Wujiashan Station in Wuhan, Hubei Province's capital. The train, loaded with 55 containers containing textiles, medical supplies, electronic products, and other goods, embarked on its journey to Duisburg, Germany, covering thousands of miles.

This trip is notable as of July 10, this year’s China-Europe freight train trips had exceeded 10,000, breaking the record 19 days earlier than the previous year.

China State Railway Group Co., Ltd (China Railway) reports that the freight train service network now reaches 224 cities in 25 European countries and connects over 100 cities in 11 Asian countries, encompassing nearly the entire Eurasian continent. This year, more than 1.08 million twenty-foot equivalent unit (TEU) containers of goods have been transported, marking an 11 percent increase year-on-year.

These figures demonstrate increasing efficiency and volume of these trips, significantly influencing international trade and logistics.

Since its launch in 2011, the China-Europe freight rail has transformed land transportation between the two regions. The initial journey covered 11,000 kilometers from Chongqing, China, to Duisburg, Germany, in just 16 days. This success led to an expansion of routes, linking cities like Chengdu, Wuhan, Zhengzhou, and Yiwu in China to European locations such as Warsaw, Madrid, London, and Moscow.

The Belt and Road Initiative (BRI), introduced in 2013, has further bolstered the China-Europe freight train service. The initiative aims to enhance trade and connectivity between China and countries along the ancient Silk Road, including Europe. As a result, the freight train service has become integral to the BRI, facilitating trade and strengthening economic ties between the regions.

Previously, coastal cities were dominant in trade due to their access to seaports. However, the China-Europe freight train service has enabled inland cities to become key logistics centers and trade gateways. This connectivity has generated new business opportunities in these cities, enhanced foreign investment, boosted international trade, and driven economic development.

Xi'an, the capital of Shaanxi Province in northwest China, has become a pivotal hub for the BRI and the China-Europe freight train service. As the starting point of the ancient Silk Road, Xi'an has emerged as a crucial link between Asia and Europe.

Despite its inland location, Xi'an has become an important assembly center. Since launching the Xi'an route in 2013, the city has seen significant growth in freight train operations, from 46 trains in the first year to over 5,300 in 2023.

Today, the Xi'an International Port Station operates 18 regular international routes to destinations such as Almaty in Kazakhstan, Tashkent in Uzbekistan, and Hamburg in Germany. These routes traverse the Caspian Sea before heading west, connecting Xi'an to major international trade hubs.

According to China Railway, between January and June this year, the Xi'an route operated 2,372 trains, marking a 13.1 percent increase year-on-year. The number of containers transported reached 250,000 TEUs, a 10.4 percent rise.

This sustained growth illustrates the economic vitality of the Eurasian "golden corridor," propelling inland cities like Xi'an to the forefront of China's opening-up.

Customs data shows that in 2023, Shaanxi, Zhejiang, and Jiangsu were the top three provinces for exports utilizing Xi'an China-Europe freight trains, while Shaanxi, Liaoning, and Fujian dominated imports.

"In previous years, coastal provinces in the eastern region typically held the top rankings, while Shaanxi ranked around seventh or eighth," said Cui Ying, director of the statistics and analysis department of Xi'an Customs. However, in recent years, the China-Europe freight train (Xi'an) has integrated more with local industries and enterprises in Shaanxi, leading to significant economic benefits for the region. Many local companies in Xi'an have seen impressive export results through the China-Europe freight train, Cui added.

The connectivity of China-Europe freight trains has significantly increased.

To cater to rising demand for rail transport between China and Europe, the China-Europe freight train service has expanded its network and upgraded its services.

In February, Chongqing launched its inaugural China-Europe freight train service to Istanbul, Türkiye. Industry experts regard this development as a major enhancement to the corridor linking western China with Europe. Despite ongoing regional conflicts, the Istanbul train service has played a critical role in strengthening the China-Europe freight train network's risk resilience and potential for growth.

"The train services provide a guarantee for the timely arrival of our goods and effectively reduce our operational risks," said Zhang Rong, deputy general manager of Yuxinou (Chongqing) Logistics Co., Ltd., the operator of the China-Europe freight train service in Chongqing.

Alongside network expansion, the China-Europe freight train service has seen significant improvements in transport capacity, efficiency, and service quality. These enhancements have contributed to the service's success and competitiveness.

"To ensure smooth train operations, we have maintained timely communication with export enterprises and enhanced 'automatic clearance.' We efficiently connect declaration, document review, and inspection, continuously monitoring customs clearance and railway manifests," said Chen Yuanjun, deputy director of Yuzhou Customs in Chongqing. Communication is also maintained with customs authorities of destination countries to ensure seamless transit and loading.

The enhanced connectivity of the China-Europe freight trains has diversified the products being transported. Initially, the trains mainly carried laptops and printers, but now the range includes over 50,000 types of commodities, such as clothing, automobiles, daily necessities, food, timber, furniture, chemicals, and machinery.

These trains are instrumental in global transportation of "Made in China" products. Since 2023, there has been growing demand for Chinese-made "tech-intensive green trio" products—lithium-ion batteries, photovoltaic products, and new energy vehicles (NEVs)—transported through the China-Europe freight trains.

Horgos, a border city in northwest China's Xinjiang Uygur Autonomous Region, has also strengthened its global ties with the China-Europe freight train service.

Yang Jiayi, who has worked in international freight forwarding in Horgos for nine years, specializes in exporting NEVs. His company has seen significant growth in NEV exports this year compared to the previous year, having provided freight forwarding services for over 9,000 NEVs transported to Central Asian and European countries.

With the China-Europe freight train’s benefits becoming more apparent, Central Asian countries are keen to engage.

Earlier this year, KTZ Express, a subsidiary of Kazakhstan's national railway company Kazakhstan Temir Zholy (KTZ), and Xi'an Free Trade Port Construction and Operation launched the China-Kazakhstan (Xi'an) Trade Logistics freight terminal. This facility facilitates an efficient "hub-to-hub" logistics corridor.

"The aim of the terminal in Xi'an is to be a transfer hub and warehouse so that goods can be transferred between China, Kazakhstan, Central Asia, and even Europe and other places more efficiently," said Sadvakkas Seitzhanov, general manager of the Chinese branch of KTZ Express, noting that the transit time from Xi'an to Tashkent in Uzbekistan has reduced from 13 to nine days.

"We adjust the shipment schedule based on real-time market demand, share information about the train service and provide one-stop service to our clients. The booming bilateral trade in recent years has given us the confidence to expand business in China," he added.

The China-Europe freight train service has revolutionized cross-border logistics, promoting economic and trade exchanges, and bringing prosperity along its routes.

"As a local, I have witnessed the rapid development of the China-Europe freight trains in Horgos firsthand," Yang reflected. "Over the years, I have seen the station's establishment and expansion. The local government has also continued to revise its investment policies, attracting talent from diverse locations and boosting local employment." Yang credited the freight train service with advancing his career.

Adilya Saidullaev, a Kazakh businesswoman, saw her business flourish since relocating to Horgos in 2016. She established multiple duty-free shops at the China-Kazakhstan Horgos International Border Cooperation Center, the first cross-border cooperation zone between China and another country.

"Our products are seamlessly transported through the China-Europe freight trains, which offer a more cost-effective service than air and road transportation. This has significantly bolstered our business operations at the cooperation center," Saidullaev mentioned.

She highlighted that the cooperation center allows Chinese visitors to purchase products without traveling to Kazakhstan.

In Germany’s Ruhr area, Duisburg serves as a crucial hub for China-Europe freight trains. Transitioning from its historical reliance on coal and steel, the city has evolved into a significant trade gateway between Europe and Asia. The railway route has rejuvenated Chinese-German exchanges and cooperation, making Duisburg a leading European trading hub.

"The rail connection between China and Duisburg continues to be a highly interesting alternative to sea and air freight for companies. It will continue to develop positively if the global political framework allows it," Soeren Link, mayor of Duisburg, told Xinhua.

"This logistics project has positively impacted the exchange of goods between Germany and China because the use of this train connection has ecological and economic advantages for Chinese and German companies," said Markus Teuber, China affairs commissioner of Duisburg. He noted that many Chinese companies have settled in Duisburg due to this train connection, creating new jobs.

"The train connection has definitely led to a win-win situation for both countries," Teuber added.


James del Carmen contributed to this report for TROIB News