ㄑ Belt and Road ㄑ News

China-Europe freight rail service traverses continents, history

China Daily | June 6, 2024

China-Europe freight trains wait to depart from Alataw Pass, Xinjiang Uygur autonomous region, on May 25. YU HUI/XINHUA

The China-Europe freight rail service achieved a remarkable milestone on May 25 by completing its 90,000th journey — an outstanding achievement that underscores the success of the Belt and Road Initiative and its deep roots in history.

The service, which facilitates the movement of goods between China and European nations, has also bolstered infrastructure connectivity, streamlined cargo transportation, and enriched trade and communication channels.

Since it began in 2011, the service has transported more than 8.7 million containers carrying goods valued in excess of $380 billion, according to the China State Railway Group, the operator of the service.

The China-Europe freight train, often referred to as a "steel camel caravan", has made these remarkable achievements in just 13 years.

Ironically, the first camel caravan to travel from China to Europe — and reportedly led by the Chinese imperial envoy Zhang Qian — took 13 years to make that singular, historic trip.

Over 2,000 years ago, Zhang Qian departed on his expedition from Chang'an, now Xi'an in Northwest China's Shaanxi province. He traveled thousands of kilometers westward, traversing what is today the Xinjiang Uygur autonomous region and various nations in Central Asia. That expedition laid the foundation for the Silk Road, heralding the dawn of links between the East and West.

Zhang's first expedition earned him widespread acclaim as a national hero and the trailblazer of the Silk Road.

Numerous merchants, travelers, and their camel caravans subsequently followed in his footsteps, facilitating trade and cultural exchanges between China and Europe and playing a pivotal role in advancing human civilization.

Inspired by Zhang Qian's historic journey and the monumental success of the Silk Road, China proposed the Belt and Road Initiative in 2013 — a modern iteration of the Silk Road aimed at fostering enhanced communication between the East and West. Over the past 11 years, this initiative has garnered widespread acceptance and proven its importance and efficiency on a global scale.

One of the prominent achievements underscoring the success of this initiative has been the China-Europe freight train service.

Surging ahead

The exponential growth of the service, from a few dozen trips at first to over 17,000 a year, highlights the increasing market demand for this cost-effective and reliable mode of transportation when compared with air and sea routes.

This growth has been particularly pronounced since 2016.

From 2016 to last year, the annual number of China-Europe freight train services surged from 1,702 to over 17,000, a tenfold increase with an average annual growth rate of 39.5 percent.

The initial surge to reach 10,000 journeys spanned 90 months, whereas the leap from 80,000 to 90,000 took a mere seven months.

Since May 2020, the monthly number of China-Europe freight train services has consistently exceeded 1,000.

The annual value of goods transported by the service soared from $8 billion in 2016 to $56.7 billion last year, underscoring its growing significance in international trade.

Furthermore, the service's evolution to include a diverse range of goods underscores its adaptability and relevance in meeting market demands.

The types of goods transported by the China-Europe freight train have expanded from IT products like laptops and printers in the early stages to over 50,000 varieties of goods across 53 categories today, including clothing, shoes, hats, automobiles and parts, daily necessities, food, timber, furniture, chemicals, and machinery equipment.

Since last year, there has been an increase in the transportation of new energy vehicles, lithium-ion battery products, and photovoltaic products manufactured in China.

On May 25, new energy vehicles were lined up at a freight railway station in Xi'an, ready to be loaded onto a customized train bound for Europe.

According to Cao Ping, who is responsible for vehicle transportation at the Xi'an Branch of the China Railway Special Cargo Logistics Co, the train, specially designed for vehicle transport, can accommodate 261 new energy vehicles per trip.

She highlighted the rise in vehicle transportation since last year. "Last year, we sent about one to two train services on average every month, and this year, the number has increased to five to eight," she said.

Cao added that most of the new energy vehicles shipped via the China-Europe freight train are from BYD and Geely, both of which have production bases in Xi'an.

Spreading its reach

As a crucial link in the international logistics supply chain, ensuring that the China-Europe freight train service becomes faster, more reliable, convenient, efficient, and cost-effective is paramount for its continuing success.

The key to unlocking this success entails a combination of strategic planning, operational excellence, technological innovation, streamlined processes, and seamless coordination among all parties involved. Expanding the network by opening new routes, even amid global crises, is an essential element.

Today, the network of the China-Europe freight train service reaches 223 cities in 25 European countries, and connects more than 100 cities in Asia.

Xinjiang serves as a significant ketchup global production hub, annually exporting approximately 700,000 metric tons of the sauce to European markets such as Italy and Spain.

Xinjiang Tianshun Supply Chain Co, a logistics and supply chain management company based in Urumqi, plays a pivotal role in transporting ketchup to Europe, but predominantly relies on shipping.

However, the Red Sea crisis led to the company's ketchup shipments being stranded at Tianjin Port since the Spring Festival in February.

"We have had over 10,000 tons of ketchup piled up in Tianjin Port since the Spring Festival (because of the Red Sea attacks)," said Ding Zhiping, president of the company.

With ketchup having a shelf life of about 18 months to 2 years, Ding faced challenges in dealing with the stranded cargo in Tianjin until a new opportunity arose.

A new China-Europe freight train route was opened, covering over 10,000 km in about 35 days and seamlessly integrating rail and maritime transportation.

It traverses the Caspian and Black seas to reach its final destination, Salerno, Italy — offering a significantly quicker journey compared with traditional maritime routes to Southern Europe.

Since April, the company has utilized the new China-Europe freight train route to transport ketchup from Xinjiang to Europe.

"Thanks to the new train service between Xinjiang and Italy, our logistical challenges have been swiftly resolved, leading to increased export volumes, reduced transit times, and improved operational efficiency," Ding said.

Need for speed

Innovations introduced to the organizational model, have cut the average transportation time between China and Europe by over five days since the commencement of operations, according to the China State Railway Group.

On May 25, a freight train loaded with 55 containers carrying a diverse range of goods, including LCD monitors, auto parts, clothing, and daily essentials, departed from Xi'an, marking the 90,000th China-Europe freight train service.

This train headed west, exiting China through the Horgos border port in Xinjiang, passing through Kazakhstan and Russia, and is expected to reach Malaszewicze in Poland within approximately 15 days.

Shao Boer, the general manager of Xi'an International Inland Port Multimodal Transportation, a logistics company based in Xi'an, said his company was heavily reliant on the China-Europe freight train service.

He singled out the introduction of a set-scheduled service in October 2022 for special praise. "The set-scheduled service, in my opinion, is a milestone development in the China-Europe railway service, as it signifies a transition from gradual quantitative evolution to a qualitative change," he said.

Unlike traditional freight carriers, the set-scheduled trains strictly adhere to a fixed timetable throughout the entire route, resulting in reduced transportation times and enhanced service predictability.

Shao said precise coordination involving railway operators and service providers from seven countries, including China, Russia, Belarus, and Germany, had facilitated the speed and punctuality of the set-scheduled service.

"For instance, the set-scheduled train departs from Xi'an at 3:55 am on Wednesday and Friday," he said.

"China will inform the train's arrival time in neighboring Kazakhstan, requiring the Kazakhstan railway operator to receive the train. Moving forward, the Kazakhstan railway service provider will manage the time traveling in their country to adhere to the schedule to ensure the operation is on time," he said.

The entire journey timetable is like a "freight high-speed train", he said, arriving at each city and station in each country at the scheduled times. "This is why it runs very fast," he said.

The set-scheduled service has significantly improved transit times, with a journey from Xi'an to Duisburg, Germany, now taking only 12 days.

Five scheduled services have already been initiated from Xi'an to Duisburg, and Chengdu, Sichuan province, to Lodz, Poland, reducing travel times by 30 percent compared with regular China-Europe freight train services.

"It takes only three days from Horgos border to Chengdu, Sichuan province," said Bai Hanguo, a senior staff member at the Urumqi branch of the China Railway Container Transport.

"The entire trip from Lodz, Poland to Chengdu is 11 days and eight hours, reducing the time by about three to four days compared with regular China-Europe freight train (traveling on the same route), " he said, adding that the company is working to ensure a stable supply of goods for the set-scheduled train service.

Cooperation with the Customs Department to expedite customs clearance procedures has also made the service faster.

"To improve efficiency for customs clearance, we have set up a 24-hour duty post at the station to facilitate immediate inspections upon a train's arrival, expediting the release process," said Zhao Yuanfeng from Horgos Customs.

"It means that no matter when the China-Europe train arrives at the border train station, it can be inspected immediately and released as soon as possible."

Bai said: "After the goods arrive at the departure port, no other customs clearance procedures are required. The railway department will inspect the goods and send a report to customs through a shared system. After customs verify the information, the goods can typically be released within 10 minutes."

The new model has significantly enhanced operational efficiency, ensuring goods can be swiftly processed and dispatched, ultimately contributing to the overall speed and effectiveness of the China-Europe freight train service, Bai added.

Overcoming obstacles

As the freight train service traverses European and Asian nations, it encounters myriad challenges, including the quest for stable sources of goods, limitations in transportation capacity, customs clearance procedures, and the intricate process of loading and unloading cargo to align with different railway tracks in different countries.

Numerous stakeholders, ranging from city governments to railway departments and customs authorities, have diligently collaborated to overcome these obstacles and enhance operational efficiency.

"Roads pave the way to prosperity across all industries," Foreign Affairs spokeswoman Mao Ning said at a recent media briefing.

"The China-Europe freight train not only transports goods but also carries opportunities and hope. This express freight service not only expedites the delivery of goods between China and Europe but also fosters the development of new logistics hubs, commercial centers, and industrial parks, bridging the geographical and economic distances between the two regions, fostering mutual benefits and reciprocity."

In Chinese cities like Xi'an, Zhengzhou, Henan province, Horgos and Urumqi in Xinjiang, and numerous locations in China, products from Europe have become ubiquitous. Chinese consumers are becoming more acquainted with these products and are showing a strong interest in their countries of origin. A similar phenomenon is unfolding in European nations.

If the pioneering figure Zhang Qian were to journey through time to the present day, he would take immense pride in his exploratory endeavors, which laid the foundation for a trade route spanning more than two millenniums.