Europe to Asia freight and vv

Topic moved from International News by bevans on 27 Dec 2014 08:27
  Tonymercury Sir Nigel Gresley

Location: Botany NSW

On 8th June a regular rail ferry was launched across the Baltic between Sassnitz, Germany and Ust-Luga, Russia. The importance of this route is shown by the attendance of German Chancellor, Angela Merkel, Deutsche Bahn Chairman, Dr Rudiger Grube and Russian Railways President, Vladimir Yakunin at the launch ceremony. Speaking at the ceremony Yakunin said This is not just another freight route we are launching today; this is a new transport corridor enabling us to provide intermodal cargo transits between the Asia Pacific and Europe through Russia.

The port of Sassnitz has a unique dual gauge rail ferry capability with 30 km of Russian gauge track and 60 km of standard gauge track. It also has a wagon gauge changing facility adjacent to the ferry berths. Ust Luga is a new port 70 miles west of St Petersburg which was inaugurated in 2001. Its new rail links enabled imported freight to avoid the congested Saint Petersburgh rail network.

The Sassnitz to Ust-Luga rail ferry has previously been used on an ad hoc basis. In 2008 it was used to transport Siemens built Sapsan high speed trains that run between Moscow and St Petersburgh. This year it was used to transport the first of 38 Siemens Desiro trains that are to be used for the 2014 Sochi Winter Olympics.

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  wanderer53 Sir Nigel Gresley

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Geto wants to step up initiatives for trans-Siberian traffic
12. June 2012

At its recent annual general meeting, the association of European trans-Siberian operators and forwarders (Geto) announced that it wants to attract increasing amounts of cargo to the Eurasian rail links. To fulfil this aim Geto intends to become a stronger lobbyist for medium-sized operators and freight forwarders that focus on the CIS. Hans Reinhard, chairman of the board of directors of the Inter-Rail group, whose companies are members of Geto, mentioned a recent initiative to boost the container blocktrain “East Wind" that runs from Berlin to Aktobe (Kazakhstan) by a regular shuttle service offering a connection to China and other countries in Central Asia. (ben)

  Tonymercury Sir Nigel Gresley

Location: Botany NSW

Summa Group to spend $1.4 billion to buy a stake in Fesco Group

Summa Group, owner of Russian ports and a Rotterdam oil terminal, is going to spend $1.4 billion to buy a stake in Fesco Group, a Pacific port and ship operator, in a move to form a Eurasian freight network and challenge Suez Canal shipping.

Summa expects Russia’s rail transit to surge, Bloomberg reported. Some analysts, including Mikhail Ganelin at Troika Dialog in Moscow claim that “serious freight flows” are quite possible in Russia as this market currently remains a bit undeveloped. Bloomberg quoted Ganelin as declaring that, “Summa wants to create a dominant transportation holding on the foundation of ports and rail operators that can ship cargo between Europe and Asia.”

Moscow-based Summa, controlled by Ziyavudin Magomedov, reportedly agreed to buy 56% of Fesco from majority owner Sergey Generalov. The Russian freight operator bought 10% of Fesco from the shipper’s treasury shares last week, kicking off the potential $1.4 billion deal, according to Bloomberg.

To fulfill its vision of creating a coast-to-coast network stretching more than 4,000 miles, Summa may have to outbid billionaire Vladimir Lisin’s UCL Holdings. They are vying for Transcontainer, now 21% owned by Fesco. The acquisition also faces resistance from the container operator’s majority owner, state-run Russian Railways. The Fesco deal will give Summa one-fifth of Transcontainer, which handles more than half of Russia’s container traffic.

However, some market watchers speculate that European importers are likely to continue to rely partially on ships. Bloomberg quoted Drewry analysts led by Neil Dekker as saying that, “because rail gauge differences and border crossings mean cargo has to be transferred to as many as two different chassis.”

Russia ranked between Guinea-Bissau and Lebanon in a World Bank survey of transportation and logistics capacities in May, coming in 95th of 155 countries.

“With the probability of delays on rail, the attractiveness of such a route decreases,” Dekker noted. “Container shipping offers far superior capacity and economies of scale, very competitive rates and its reliability is constantly improving.”

  wanderer53 Sir Nigel Gresley

Location: front left seat EE set now departed

RUSSIAN Railways (RZD), Kazakhstan Railways (KTZ) and Belarusian Railways (BC) have announced plans to form a joint container transport and logistics company.

RZD Logistics will be used as the basis for the new company in which each railway will have an equal shareholding.

The three railways will contribute assets to the new venture. RZD will transfer its holding in TransContainer, KTZ will transfer shares from some of its subsidiaries, and BC will transfer ownership of its Brest terminals and assets its subsidiary Belintrans.

Mr Vladimir Yakunin, president of RZD, says considering the dynamic development of western and central China, the new venture should be able to attract additional traffic to rail of up 1 million TEUs by 2020. "This is about 2% of anticipated container flows between Europe and Asia," he says.

  wanderer53 Sir Nigel Gresley

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RZD Joins Container Transit JV

22.06.2012 (23:58)

Russia, China, Kazakhstan, and Germany have formed a joint venture for the transit of container cargo by rail from China to Europe, RBC Daily reported today, citing Russian Railways (RZD) President Vladimir Yakunin.

The new company plans to transport 5,800 Twenty-Foot Equivalent Units (TEU) before the end of 2012. Cargo traffic is expected to increase to 50,000 TEUs by 2015.

Russian Railways Logistics, a subsidiary of Russian Railways, has become a co-founder of the venture called YuXinOu (Chongqing) Logistics Co. Ltd. Other co-founders include Chongqing Transportation Holding Group (CQCT), China Railway International Multimodal Transport Co. (CRIMT), Germany's Schenker China Ltd., and Kazakh company Kaztransservis. The Chinese companies will be entitled to a 51.1% stake in the joint venture, while each of the other partners will receive a 16.3% interest.

YuXinOu Logistics Co. will operate regular container transportation by rail from the Chinese city of Chongqing to the German city of Duisburg.

  wanderer53 Sir Nigel Gresley

Location: front left seat EE set now departed

Russia, Kazakhstan, Belarus May Launch Railroad JV in October–December

28.06.2012 (09:44)

A logistics joint venture (JV) between Russian, Kazakh and Belarusian railroad operators may begin its activities in October–December, Belarus’ Transport and Communications Minister Ivan Shcherbo said Wednesday, reports Prime referring to RIA Novosti.

"The joint venture should start working in the fourth quarter,” he said adding that the plan was preliminary because the creation of the JV depended on the positions of all three countries.

Shcherbo did not provide detail on the cost of the joint venture or the stakes that the countries would hold in it, but said the costs will be determined in July.

A source from the railroad industry said in June that the establishment of a unified logistics company could amount to more than U.S. $2 billion.

According to the source, Russian Railways is supposed to contribute a 50% plus one share of TransContainer to the new company. Kazakhstan may give away Kaztransservis, a 100% affiliate of TransContainer, to the project as well Kedentransservis, in which 67% is held by TransContainer. Belarus may contribute about 3,000 platforms and the Brest terminal.

Shcherbo said that Belarus was interested in the project, as it does not want to lose the cargo transported to Europe from Kazakhstan that could be transported via St. Petersburg.

Far East Shipping Company, the second largest shareholder of TransContainer opposed to the transfer of government’s stake in TransContainer to the new company. Its Vice President Kirill Rubinsky said that the deal was non-transparent.

  wanderer53 Sir Nigel Gresley

Location: front left seat EE set now departed

II Session of the Kazakh-Latvian Council for Business Cooperation

28.06.2012 (10:28)

In JSC "NC "Kazakрstan Temir Zholy", the II session of the Kazakh-Latvian Business Council took place. As part of the Latvian delegation it was attended by Vice-President of the Employers' Confederation of Latvia, Chairman of the Board of SJSC "Latvian Railway" Ugis Magonis.

According to the President of JSC "NC" Kazakhstan Temir Zholy" Askar Mamin who presided over meeting, in 6 months from the date of creation of council many important tasks have been realized.

Within the framework of the first international transport and logistics forum "Silk Road-2011" between the JSC "NC "KTZ" and SJSC "Latvijas Dzelzceļš" ,"Eesti Raudtee" and "FESCO Transport Group" concluded an agreement on contrailer train "Baltic Transit -2" to implement the international multimodal transportation.

Its predecessor, the train "Baltic Transit", has been running between the two countries for 8 years. 4,414 20-foot containers were transported in 2004, and in 2010 this figure increased to 20,189. Currently, the route is extended to Arys train station.

The total volume of freight carried by rail between the Republic of Kazakhstan and Latvia in 2011 was 2.9 million tons, 11% or 274,000 tons more than in 2010. For five months in 2012, 1.4 million tons were transported , 19% 229,400 tons more than the same period in 2011.

At the meeting the sides discussed issues of further development of cooperation in the field of transport, transit and logistics, aviation, electric power and energy, science and education, and health care between the countries.

Following the meeting the president of JSC "NC "Kazakhstan Temir Zholy" Askar Mamin and Chairman of the Board of SJSC "Latvian Railway" Ugis Magonis signed a joint protocol.

  wanderer53 Sir Nigel Gresley

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New joint venture for hauling rail freight in transit between China and Europe
03. July 2012

A new joint venture named YuXinOu (Chongqing) Logistics Co Ltd has been established to transport railfreight in transit between China and Europe. YuXinOu Logistics Co Ltd, which is registered in Chunzin, was founded by the transport holding Chunzin (CQCT), China’s railway company for international mixed transport (CRIMT), the stock company RZD Logistika, Schenker China Ltd and the Kaztransservice corporation. (ben)


  wanderer53 Sir Nigel Gresley

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RZD Logistics Completes Acquisition of 10% of FELB Shares

03.07.2012 (23:43)

OJSC RZD Logistics has completed the acquisition of 10% of shares of Far East Land Bridge Ltd. (FELB) and intends to increase its stake to 25% in the near future, RZD Logistics informed.

As this project is implemented, the projected volume of transportation will reach about 35,000 TEU in 2012, and 69,000 TEU in 2015.

According to Pavel Sokolov, CEO of RZD Logistics, FELB will later become part of the united transport and logistics company currently being established by the Customs Union countries (Russia, Belarus, and Kazakhstan). “This consolidation will streamline our transit transportation technology and speed up the cargo deliveries along our Euroasian routes. The international transport and logistics company will unite container assets of Russia, Kazakhstan and Belarus, raise the overland transport corridor's appeal benefiting from the single cargo base. Also, we will then be able to remove the cargo flow imbalance resulting in positive development of the railway systems in the three countries participating in the project,” he said.

According to Moshe Levy, Chairman of the Board of Directors of Far East Land Bridge Ltd. FELB's primary objective is to increase the volume of cargo transportation in containers by rail both from Asia to Europe and back. "The main cargo flows use the Trans-Siberian Railway. In partnership with OJSC Russian Railways, we try to strengthen the Trans-Siberian Railway's economic and strategic value increasing transit carriages. Cooperation with RZD Logistics will not only increase our competitive edge against sea carriers, but also expand the range of services so as to ensure comprehensive services are offered to our customers. We hope for efficient and mutually beneficial cooperation to optimize all kinds of transport services in full conformity with international standards, and to develop the Trans-Siberian Railway and as one of Eurasia's paramount transport routes fundamental and vitally essential for the development of the Asian part of the Russian Federation," Mr. Levy said.

Far East Land Bridge Ltd. specializes in transit carriage operations in containers by rail from China to Europe and back. The company cooperates with BMW, LG, Samsung, and other major companies.

OJSC RZD Logistics was established in 2010 to support the development of Russian Railways Holding's logistics business. For today, Russian Railways JSC belongs 100% - 1 share of RZD Logistics shares.
  Tonymercury Sir Nigel Gresley

Location: Botany NSW

RZD Logistics, a subsidiary of Russian Railways, has co-founded a joint venture to organise freight transit by rail between China and Europe. Vladimir Yakunin, President of Russian Railways, announced the creation of the JV last June.

The JV YuXinOu (Chongqing) Logistics Co. Ltd is registered in the city of Chongqing. Its founders are the Transport Holding of Chongqing (CQCT), the China Railway Company for International Multimodal Transport (CRIMT), RZD Logistics, Schenker China Ltd. and the Joint Stock Company Kaztransservice.

With 51.1% of the charter capital, the Chinese are the major shareholders, while the foreign investors hold equal shares of 16.3% in the jv.
The main activity of YuXinOu (Chongqing) Logistics Co. Ltd. will be organising regular rail container shipments between Chongqing in China and Duisburg in Germany.

The first container train from Chongqing to Duisburg is scheduled for the end of June 2012. The company will also provide freight forwarding, customs, information, consulting and other services related to the provision of international container traffic. The ultimate goal is to create a logistics company which provides third-party logistics services (3 PL) “door to door”.

The company’s business model provides for RZD Logistics to deliver the necessary support, including its knowledge of the Russian freight transportation market, as well as technological issues associated with the carrier’s operations.

It is forecasted that the volume of freight to be carried by the new company from the Chinese province of Sichuan to Europe will reach around 5,800 twenty-foot equivalent units (TEU) by the end of 2012.

Potential clients of the joint venture are major international companies in electronic information technology, manufacturers of components and units, machinery, the chemical, aviation and software industries and in other sectors which are concentrated in the Chongqing metropolis.


  Tonymercury Sir Nigel Gresley

Location: Botany NSW
KAZAKHSTAN: The government is developing plans for the Kaztemirtrans freight business of national railway KTZ to transfer ownership of its wagon fleet to the private sector. Because of a shortage of wagons Kaztemirtrans currently uses foreign-registered vehicles for 20% of its traffic, and as neighbouring countries reform their wagon ownership structure this is affecting Kazakhstan. In an attempt to make up its wagon shortfall KTZ acquired 7059 new vehicles in 2011, of which 41 were produced domestically. A further 15000 will be required this year. A meeting was held to discuss the privatisation proposals with KTZ customers on June 18.

  • KTZ, Russian Railways and Belarus Railways have agreed to combine resources from various subsidiaries including RZD’s stake in TransContainer to establish an equally-owned joint venture providing international container transport services. The aim is to capture a 2% share of container flows between Europe and Asia by 2020, according to RZD President Vladimir Yakunin.

  Tonymercury Sir Nigel Gresley

Location: Botany NSW
INTERNATIONAL: Transport Holding of Chongqing, China Railway Company for International Multimodal Transport, RZD Logistics, Schenker China and Kaztransservice have established the YuXinOu (Chongqing) Logistics joint venture to manage rail freight services between China and Europe. Operations will begin with container traffic between Chongqing and Duisburg. The joint expects to carry 5800 TEU by the end of 2012, with potential clients seen as companies from the electronics, machinery, chemical and aviation sectors in the Chongqing region.
  wanderer53 Sir Nigel Gresley

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Chongqing-Xinjiang-Europe railway carries 3,088 TEU as of July


09 August 2012

The Chongqing-Xinjiang-Europe cargo railway has moved a total of 3,088 Twenty-foot equivalent unit (TEU) with a trade value of USD 850 million TEU.

The Chongqing-Xinjiang-Europe railway is currently operating at a frequency of one run per week. By the end of this year, the frequency will be increased to thrice weekly and one per day by the end of next year.

Besides increasing frequency, operator of the service expects to attract more cargo on the backhaul from Europe and study in which temperature control for containers during winter could contribute to the smooth operation of the service year round.

In addition, the operator will enhance reloading efficiency when changing from narrow rail gauge in China to broad gauge in Russia and Europe. Transportation time will also be shortened to about 13 days.

  Tonymercury Sir Nigel Gresley

Location: Botany NSW

Once considered slow and a relic of the past, Russia's mighty Trans-Siberian Railway has come to life in the 21st century to play a pivotal role in cargo transport, connecting economies from Europe to the Asia-Pacific region.

In the Troitsa port in Zarubino of the Primorsky Territory, the Trans-Siberian Railway offers a direct benefit to Japanese companies.

The port has a container terminal for the Trans-Siberian Railway and cargo block trains can transport up to 300 cars in one delivery. Each rail car holds 10 automobiles stacked on two decks. One train run consists of 30 such rail cars.

In 2008, Mazda Motor Corp. became the first Japanese automaker to use the Trans-Siberian Railway. Mazda still accounts for 98 percent of the Japanese cars transported on the railway, but Mitsubishi Motors Corp. and Fuji Heavy Industries Ltd., which manufactures Subaru cars, have also begun using the railway to transport some of their vehicles to the various nations that made up the former Soviet Union.

"South Korea's Hyundai Motor Co. also uses the railway, and we are also negotiating with Toyota Motor Corp.," said Sergej Karmanov, a vice general manager of a harbor management company.

The automakers who use the Trans-Siberian Railway are attracted by the speedy delivery times. Although Moscow is located about 9,000 kilometers away, it takes about 11 days to reach the Russian capital by train. In total, it takes about 20 days for vehicles manufactured in Japan to reach Moscow car dealerships.

If the same vehicles were shipped via the Indian Ocean and the Suez Canal to Europe for transport to Russia, it would take about 60 days.

With the Russian economy enjoying the fruits of rising prices for natural resources, new car sales have increased rapidly, and Russia is approaching the number being sold in Germany.

In the last fiscal year, Mazda shipped about 30,000 vehicles to Russia.

"There is a huge benefit to being able to quickly resupply popular models to the market," a Mazda official said.

Cargo transport over the Trans-Siberian Railway peaked in the 1980s, before transport volume fell drastically due to the outdated equipment that was being used. However, the railway has recovered to become a major distribution artery connecting Russia to Asia.

In 2011, total transport volume, including not only imports and exports to Russia but also transit cargo shipments between two other nations, reached 102.7 tons, a 30-percent increase over 2008. Ninety percent of that volume is taken up by export of natural resources because of the transport costs that are deliberately kept low as part of state policy. However, Russian Railways compiled a plan last year to increase the ratio of revenues for the transport of such cargo as industrial products and daily necessities from the 4.2 percent of 2010 to 7.5 percent in 2020.

At a container terminal next to BMW AG's modern plant in Leipzig, Germany, yellow vehicles carried containers to two rail lines with close to 20 rail cars each. The trains were bound for BMW's plant in Shenyang, China. China and Europe are separated by about 11,000 kilometers of railways, which takes about 20 days to traverse. The distance and time required is about half of shipping routes.

In the first six months of 2012, BMW's sales in China reached about 159,000 vehicles, an increase of 30 percent over the same period in 2011. That rate of increase is much higher than the 8 percent increase in global sales.

"There is a need to support the new plant by sending it parts as quickly as possible," an official at the Leipzig plant said.

On the return trips, a liquid-crystal panel manufacturing company affiliated with LG Electronics Inc. transports parts from its Dalian, China, plant to a factory in Poland.

Anatol Kuzhel, the director of the central control division at Russian Railways, said, "The speed and accuracy of the Trans-Siberian Railway exceeds international standards."

The introduction of cargo block trains from the 2000s is a major factor behind that development because it allows for quick transport of huge volumes of cargo.

In an ordinary cargo rail configuration, rail cars destined for various locations are connected together and the cars have to be disconnected and reconnected a number of times along the way. That leads to delays in delivery as well as resulting in additional jolts to the cargo.

However, cargo block trains involve connecting at least 30 rail cars and no change in that configuration is needed before reaching the destination. This means trains can reach Moscow from the Russian Far East in as short as seven days.

In Vladivostok in the Russian Far East, ships carrying cargo from Asia await their turn to anchor at the port. The Russian shipping company FESCO, or Far Eastern Shipping Co., has routes to Japan, China and South Korea. It also operates almost daily runs of cargo block trains to Moscow.

"There are no problems with delays or damage to the products," said Dmitriy Kurdakov, the director of FESCO Integrated Transport's Far Eastern regional center.




The extensive presence of the Trans-Siberian Railway is evident outside of Vladivostok where there is a railway crossing that is known locally for only being open for very short periods of time.

A long line of cargo rail cars moved slowly past, taking about 10 minutes for the entire configuration to pass. However, no sooner had that train gone by when another long cargo train came in the opposite direction.

Cargo trains on the Trans-Siberian Railway make about 60 round trips daily, including on branch lines. Some connect up to 100 rail cars, extending for about 1.5 kilometers.

There is a total of about 85,000 kilometers of rails in Russia and Russian Railways employs 970,000 workers, the largest workforce of any Russian company. That makes the company a valuable source of jobs outside of major urban centers.

The Russian government began privatizing cargo transport from about 2003 and in 2008 decided on a plan to spend at most about 13.8 trillion rubles (about 33 trillion yen, or $422 billion) over a 30-year period to renew engine cars and rails.

The extensive railway network has also led to the birth of new businesses in the Russian Far East.

About 70 kilometers north of Vladivostok near the border with China lies the city of Ussuriysk. The home appliance company Ocean has a plant there that manufactures refrigerators.

"This area is most suited for transporting parts from South Korea and China by train and shipping out finished products," said Alexandr Zaikin, Ocean general director.

Through a cooperative relationship with a South Korean company, Ocean has expanded production of products based on models first manufactured by the partner company. It now produces about 200,000 refrigerators annually and also has begun manufacturing liquid-crystal flat screen TV sets and washing machines.

"We want to expand sales in western Russia, including Moscow," Zaikin said.

Still, the Trans-Siberian Railway is not without its problems.

For one thing, the cargo block train setup requires enough cargo to fill at least 30 rail cars. But there is a chronic shortage of rail cars because production has not kept pace with the sudden increase in transport volume.

There are also unexpected costs involved, such as escort fees that are delineated by law for cargo as well as complicated customs procedures that have to be cleared.

The railway also received bad publicity in the 1990s when the overall Russian economy was mired in a confused state. At that time, the railway was criticized for using outdated equipment, the rough handling of cargo by workers and delays in the train schedule.

Some Japanese companies, such as Mitsui & Co. and Kintetsu World Express Inc., came up with transport plans to use cargo block trains. However, cargo has not accumulated due to economic stagnation arising from the collapse of U.S. investment bank Lehman Brothers in 2008.

In addition to the relatively higher expense of shipping products to the Russian Far East, officials of Japanese companies also held concerns that cargo would be damaged along the way.

Russia has implemented measures to respond to such concerns.

In addition to seeking even faster transport, efforts are also being made to reinforce the transport capability of the Baikal-Amur Mainline (BAM), which is often referred to as a second Trans-Siberian Railway.

In the future, plans call for having BAM handle the transport of natural resources while the Trans-Siberian Railway would concentrate on passenger travel and cargo block trains.




There are also efforts in other nations to create a multilayer railway network linking Europe with Asia.

For landlocked nations, getting a foothold into such a network provides an opportunity for economic development.

In May, Nursultan Nazarbayev, the Kazakhstan president, said, "We have to become the largest distribution connecting point in central Asia in order to become a bridge connecting Europe and Asia."

In 1990, operations began on a railway line from Almaty, which was the Kazakhstan capital at the time, extending for about 500 kilometers in a northwesterly direction to the Chinese border. Cargo transport lines began operating on that line from last year reaching to Chongqing in western China.

However, that line is still not up to the speed of the Trans-Siberian Railway because of a difference in rail gauge. That means cargo has to be transferred to a different train at the national border. For that reason, cargo trains have to wait their turn due to an increase in transport volume.

About 50 kilometers north of Almaty lies the small town of Jetygen. A rail line of about 300 kilometers has been laid connecting the town to one near the Chinese border. Plans call for operations to begin next year, and the new line could become a second route linking central Asia and Europe with China.

"We will protect the safety of cargo transport that is spreading around the world," said Alimkulov Berik Ryskulovich, the station master at Jetygen. "Although this is a small station, its role is important."

Mongolia, which is sandwiched between Russia and China, has also begun investing in railway construction.

From the capital of Ulan Bator, a day's drive south over the steppes leads to Sainshand, the central city of Dornogovi province. On the outskirts of the city, construction of a new railway line was proceeding on an embankment of between five to 10 meters.

Far off to the west lies the Tavan Tolgoi coal mine, one of the world's largest for which companies of various nations are competing to gain development rights. In the other direction, the embankment leads to a town in eastern Mongolia, which is connected to Russia by rail.

Plans call for connecting the Trans-Siberian Railway with the huge coal mine in a few years.

Although the coal mine is actually closer to the Chinese border, the strategy among Mongolian officials is to utilize the Trans-Siberian Railway to export the coal to Russia, Japan and South Korea.

While maintaining a delicate balance between China and Russia, Mongolia is also seeking an exit to the Sea of Japan for its enormous reserves of natural resources.

Railway engineers in Mongolia also pointed to other geopolitical factors behind the move.

Mongolian officials are wary about Beijing's motives because China in 2002 cut off rail lines from Mongolia for more than a day because of a visit from Dalai Lama XIV.

The construction of the new railway line means that in the future Sainshand will serve as an intersection for transport.

P. Gankhuyag, the governor of Dornogovi province, said, "We will create jobs for 300,000 people by constructing a heavy industry complex."

  wanderer53 Sir Nigel Gresley

Location: front left seat EE set now departed

Asia Pacific cargo hitching rides on Trans Siberian Railway


23 August 2012

Mongolia, which is sandwiched between Russia and China has also begun investing in railway construction.

From the capital of Ulan Bator, a day's drive south over the steppes leads to Sainshand, the central city of Dornogovi province. On the outskirts of the city, construction of a new railway line was proceeding on an embankment of between five to 10 meters.

Far off to the west lies the Tavan Tolgoi coal mine, one of the world's largest for which companies of various nations are competing to gain development rights. In the other direction the embankment leads to a town in eastern Mongolia which is connected to Russia by rail. Plans call for connecting the Trans Siberian Railway with the huge coal mine in a few years.

Although the coal mine is actually closer to the Chinese border, the strategy among Mongolian officials is to utilize the Trans Siberian Railway to export the coal to Russia, Japan and South Korea. While maintaining a delicate balance between China and Russia, Mongolia is also seeking an exit to the Sea of Japan for its enormous reserves of natural resources.

Railway engineers in Mongolia also pointed to other geopolitical factors behind the move. Mongolian officials are wary about Beijing's motives because China in 2002 cut off rail lines from Mongolia for more than a day because of a visit from Dalai Lama XIV.

"Mr. P Gankhuyag governor of Dornogovi province said that the construction of the new railway line means that in the future Sainshand will serve as an intersection for transport. We will create jobs for 300,000 people by constructing a ."



  wanderer53 Sir Nigel Gresley

Location: front left seat EE set now departed

URUMQI, Sept. 2 (Xinhua) -- China will continue providing financing support for cross-border infrastructure construction with Eurasia, Premier Wen Jiabao told an audience at a session of the second China-Eurasia Expo on Sunday.

Addressing the second China-Eurasia Economic Development and Cooperation Forum in Urumqi of northwest China's Xinjiang Uygur Autonomous Region, Wen said China and involved countries should earnestly carry out such projects as the China-Central Asia natural gas pipeline and the China-Kazakhstan oil pipeline, and push forward the new energy pipelines between China and Russia.

The countries should speed up building major transport routes, including the highway linking western China and western Europe, the China-Tajikistan highway and the China-Kyrgyzstan-Uzbekistan highway and railway, he said.

The premier added China and Eurasian countries should effectively operate and maintain the Chongqing-Xinjiang-Europe railway, a recently opened logistics route between Asia and Europe.

He also called for better integration of regional telecommunications networks.

With regard to cultural and people-to-people exchanges between China and Eurasia, Wen said the two sides should expand dialogue and exchanges between civilizations, respect each other's cultural traditions and religious customs, and promote mutual learning and harmonious coexistence of different races, religions, beliefs and cultures.

More cultural exhibitions and festivals should be organized and more fine works should be published, he said.

Wen encouraged countries to send more students to each other, build joint universities and strengthen cooperation in human resources training.

"We should promote tourism cooperation, and establish more sister provinces/states relations," he said.

He also called for closer friendly exchanges between academic institutions, youth organizations and news media.

"History proves that stronger cultural and people-to-people exchanges will expand mutual understanding and common views among the Eurasian people, and bolster friendly relations between the countries," according to the premier.

The Second China-Eurasia Expo is taking place in Urumqi from Sept. 2 to 7. Fifty-five countries and regions, six international organizations, including the United Nations Development Program and the United Nations Industrial Development Organization, will attend the event.

  wanderer53 Sir Nigel Gresley

Location: front left seat EE set now departed

China-Eurasia relations best in history, says Wen   2012-09-02 22:01:36




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URUMQI, Sept. 2 (Xinhua) -- Chinese Premier Wen Jiabao said on Sunday that China has entered the best time in history in its relations with Eurasian countries and is embracing a new height of cooperation for mutual benefit.

Wen made the remarks when addressing the second China-Eurasia Economic Development and Cooperation Forum in Urumqi of Xinjiang Uygur Autonomous Region in northwest China, an important session of the second China-Eurasia Expo.

Wen said China established good-neighborly and cooperative relations with Central Asian countries and successfully settled the historical legacy of boundary issues.

The Shanghai Cooperation Organization (SCO), with a growing number of members, observers and dialogue partners, has carried out productive economic and security cooperation, since its inception 11 years ago, he said.

Wen listed several mechanisms and relations China built up with countries in the region, including the China-Arab States Cooperation Forum with West Asian countries, strategic dialogue with the Cooperation Council for the Arab States of the Gulf (GCC), and strategic and cooperative partnerships with India, Pakistan and Afghanistan.

China held two sessions of the Economic and Trade Forum with the Central and East European countries, the premier said.

According to him, over the past ten years, China's trade with countries in Central Asia, West Asia and South Asia has surged from 25.4 billion U.S. dollars to over 370 billion U.S. dollars, growing at an average annual rate of 30.8 percent. Chinese companies have made direct investment worth 250 billion U.S. dollars in Eurasian countries and signed project contracts worth about 470 billion U.S. dollars.

"West and Central Asian countries are China's most important partners for energy cooperation," the premier said, adding their cooperation in the field has expanded from simple import and procurement to both upstream and downstream sectors covering design, prospecting, refining, processing, storage, transport and maintenance.

Wen said the construction of the grand Eurasia passage is speeding up. The China-Kazakhstan oil and gas pipelines have started operation. The second cross-border railway between China and Kazakhstan has been successfully linked up. The China-Kyrgyzstan-Uzbekistan highway will be soon launched in full.

"A multi-dimensional silk road consisting of roads, railways, air flights, communications and oil and gas pipelines is taking shape," Wen said.

He noted that the development of Eurasian countries and their growing ties have brought not only tangible benefits to people of all countries, but also peace and stability to the world.

As long as the Eurasian countries embrace sincere cooperation on the basis of mutual respect, mutual trust and mutual accommodation, they are fully capable of taking destiny in their own hands and achieving development and rejuvenation, he said.

The Second China-Eurasia Expo will be held from Sept. 2 to 7. Fifty-five countries and regions, six international organizations, including United Nations Development Program and United Nations Industrial Development Organization, will attend the expo.


  wanderer53 Sir Nigel Gresley

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RZD is investing heavily in its future as a Eurasian operator Bridging the continents
28. August 2012

The railways continue to rule the roost in the Russian transport industry. The intermodal split shows that the transport backbone of the entire country, Russian Railways, transports approximately 80% of all goods. RZD president Vladimir Yakunin answered ITJ editor-in-chief Christian Doepgen’s questions on RZD’s present and future Eurasian railway traffic strategy.


The Russian Railways RZD had a good start to 2012, with H1 shipping volumes up by 3.5%. How does RZD expect to develop in the second half of 2012?

Despite the good start we haven’t returned to pre-crisis volumes yet – we’re still 4.5% behind. But in general we are optimistic for 2012. We expect total volumes to come in at 1.275 billion t, a 2.7% improvement.


RZD is investing in many segments and plans to invest a total of EUR 380 billion by 2030. What do you expect from a TransContainer share auction, after you sold almost 75% of the shares in your affiliate PGK/First Freight to UCL in 2011 for EUR 2.98 billion?

Share privatisation measures fall under the jurisdiction of the Russian government. We’ve presented our view of the development prospects for Europe’s largest railway container operator to the state. In May in Sochi, RZD signed an agreement with its partners Kazakhstan Temir Zholy, the Kazakh rail corporation, and Belarusian Railways, propagating the development of unified transport and logistics systems and a unified transport company. We suggested using our subsidiary RZD Translogistika as a basis, bringing TransContainer shares into it. We expect to attract an additional 1 million teu of extra freight by 2020, thanks amongst other things to the dynamic growth of western and central Chinese provinces.


What track projects will Russian Railways prioritise in 2012 and 2013?

Our investment budget for 2012-2014 amounts to RUB 1.1 trillion (about EUR 28 billion). We’re focusing on transport facility projects for the Sochi Olympic Games in 2014, on transportation security and technology process stability, on the completion of the Kuznetsovsky tunnel on the Baikal–Amur road, freight traffic dissection for the St Petersburg–Helsinki service and on the development of the approaches to northwestern ports. This year will also be decisive for Russia’s high-speed rail lines. We’ve submitted our plans to the government.


Rolling stock fleet expansion is a permanent topic for rail enterprises. The rolling stock of RZD and its associates stood at 397,000 wagons in 2011, while private firms in Russia operated more than 590,000 wagons. Changes to the Russian tariff system have made rail transport more attractive. How can the important issue of goods wagon allocation be further improved in Russia?

Tariff optimisation is the most important element in the increased efficiency of railway transport. The freight traffic model will unify tariffs in the price list 10-01. Now about 94% of all goods (except for transit freight) and about 70% of all traffic at border control points is shipped under the unified tariff rates. Tariffs will be equal for loaded and empty mileage, also in international transport, from 1 November. The system was developed to make the handling of goods of various costs equally profitable.


RZD is active internationally, for example as the largest stakeholder in UBTZ, the Ulaanbaatar Railway in Mongolia, since 2009. What development of new rail links to copper and coal reserves (for example in Tavan Tolgoi in southern Mongolia) can be expected?

A consortium of RZD and partners submitted a bid to the Mongolian government for the Tavan Tolgoi mine railway in 2011. We’re planning to offer a full-scale logistic chain supplying coal consumers in China, Japan, Korea, India and elsewhere. Our consortium also offered to upgrade UBTZ and introduce favourable coal freight tariffs. Now we’re awaiting the Mongolian government’s decision.


Trans-Eurasian corridors and broad-gauge tracks through to Vienna are important issues. What is your assessment of these plans, after the Seventh International Rail Business Forum, held in Sochi recently?

Annual trade volumes between Europe and Asia are worth about USD 600 billion, but less than 1% thereof is shipped by the railways. Participants in the forum in Sochi concluded that railways need to harmonise the interoperability of systems in the EU, the CIS and in Asian nations, to attract new freight and develop competitive advantages vis-à-vis other modes. We consider the 1,520 mm gauge line construction to Vienna to be a key element for a land bridge between Europe and Asia. The project could establish a unified 10,000 km transport corridor. RZD has developed a new service called «Trans-Siberian road in seven days», which will offer delivery times of 13 to 14 days from Europe to Asia.


Do the expected returns of a broad-gauge track from Košice to Vienna justify the massive investments?

A feasibility study conducted by Roland Berger Strategy Consultant shows that the line could attract between 16 and 24 million t of additional cargo by 2050. A EU white paper states that more than half of transport over 300 km should be performed by rail or by water by 2050. In the long run, more than 30 Eastern and Central European, Central Asian and Far Eastern countries will gain economic advantages thanks to the project. Implementation will require the right political and administrative decisions, however.


The customs union between Russia, Belarus and Kazakhstan is important for transport too. What integration measures are you pushing for?

We’re updating the railway infrastructure in international corridors 2 and 9 in the context of this partnership. In May we signed a memorandum with Kazakhstan Temir Zholy and Belarusian Railways to work on three main issues.

The first foresees the updating of laws and regulations for the transport industry, the second the development of a unified settlement system, and the third envisages the establishment of a united transport and logistics company on a parity basis, which will provide the full range of complex transport and logistic services in the railfreight and intermodal traffic segment.

These steps will enable us to fully realise the east–west transit potential of the entire railway network, and raise efficiency, thanks to rolling stock economies of scale.


RZD re-joined the International Union of Railways (UIC) in 2006, and now the global perspective is more important for you personally too, as you’ve been nominated UIC chairman for 2013-2014. What are your plans for the railways worldwide?

Well, first of all, I’ve only been nominated so far and not elected yet. But of course it represents an immense honour, for me personally as well as for RZD. The Soviet Union’s railways were among the UIC founder members, but the Cold War forced the Soviet Union out of the body. In 2006, RZD re-joined the organisation. My corporation is the only railway administration that sits in two regional UIC assemblies, namely the European and Asian ones. Russia’s unique geographic position enables us to serve as a bridge between Europe and Asia, and that’s where I see our key role – bringing all continents and networks together to help them play a key part in the global integration of the modern world.


Russian Railways is an employer with a staff of almost 1.2 million people. How do you manage that?

RZD has five generations working in the same company, working together for the same future. RZD’s 51 technical schools and training centres accept more than 40,000 employees for 130 professional training courses every year, with more than 35,000 people additionally upgrading their skills there annually. Our collective employment agreement, said to be one of the best in the country, or our special loyalty premiums, amongst other things, make the Russian Railways one of the most attractive employers in the country.


At a more personal level, you were made a grand officer in the order of merit of the Italian republic in February, and organised the «In Christo» exhibition and the Russian cultural days in Merano. Do you have a special fondness for Italy?

I’m very proud of the honour and grateful to Italy for appreciating our work for the Russian culture and language year in Italy. This enabled us to organise the exchange of Giotto paintings for Russian icons from the Tretyakov art gallery. Besides cultural ties there are human ones between Russians and Italians too. In Italy they remember Russian sailors who saved people when an earthquake destroyed Sicilian towns in 1908. Several sailors died rescuing earthquake victims, and in 2008 I was present for the inauguration of a monument to these Russian Angels of the Sea in Messina, where streets are named after them. So yes, it’s true – I have got special feelings for Italy.

  wanderer53 Sir Nigel Gresley

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Russia to Offer New EU-Asian Trade Route – Putin

10.09.2012 (09:25)

Russia wants to become a new global transit route connecting Europe and the countries of the Far East, Russian President Vladimir Putin said on Sunday.
The country's transportation network, including the Transsiberian railroads and the Northern Sea Route in the Arctic, offer unique opportunities for transit of goods across the globe, Putin said at the APEC summit in Vladivostok.
The APEC countries support Russia's efforts to improve its Siberian transportation routes, increasing cargo traffic, Putin said.
Although the Siberian railroads and the Arctic sea route could significantly speed up cargo shipping, they lack the infrastructure, including ports on the Arctic coast.
Inefficient customs are also a constraint, and the Baikal-Amur Mainline railroad needs an expansion priced at around 730 billion rubles ($23 billion), or more than the cost of the APEC summit in Vladivostok, which included construction of some 50 infrastructure objects across the region.
  wanderer53 Sir Nigel Gresley

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Panalpina starts three direct LCL services


12 September 2012

Panalpina has launched three new direct Less than Container Load (LCL) services from Asia to Europe.

Operated by Pantainer Express Line, the weekly guaranteed services from Singapore to Prague (Czech Republic), Singapore to Budapest (Hungary) and Shanghai to Graz (Austria) cut transit times and CO2 emissions.

“There is a growing demand in the automotive and hi-tech industries for direct consolidation services from Asia into the Czech Republic, Hungary and Austria,” said Mr. Christian Kruse, regional head of ocean freight LCL Europe and Middle East.

Panalpina offers a dozen LCL services from mainland China, Hong Kong and Singapore into these countries. Singapore to Prague, Singapore to Budapest and Shanghai to Graz used to run via Hamburg by rail to Linz in Austria where the cargo was loaded onto trucks. “In order to cut transit times and CO2 emissions we’ve decided to take the Linz stop out for these services and route cargo for Budapest and Graz via Koper, Slovenia’s port on the Adriatic Sea,” explained Kruse.

The new weekly guaranteed services are operated by Pantainer Express Line. Transit time for both Singapore to Prague and Singapore to Budapest is reduced by two days to 29 days. The journey from Shanghai to Graz now only takes 36 days instead of 41. Because of shorter distances and, for Prague and Budapest a shift from road to rail, CO2 emissions for these services are reduced by 22% for Graz, 8% for Prague and 33 percent for Budapest

  wanderer53 Sir Nigel Gresley

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International Container Transportation on TransSib Grows 23% This Year

27.09.2012 (16:54)

The volume of international transportation of large containers on the Trans-Siberian Railway route over the first seven months of 2012 has increased by 23 percent, President of the Russian Railways company (RZD) Vladimir Yakunin said on Thursday at the 21st plenary meeting of the International Association Coordinating Council on Trans-Siberian Transportation (CCTT) that opened in Helsinki.
Taking part in the event are representatives of railway administrations of 25 countries.
The CCTT was founded by the RF Ministry of Railway Communication (since 2003 - after the restructuring - JSC Russian Railways), DB AG (Deutsche Bahn), GETO (Association of European Trans-Siberian Operators), and KIFFA (Korean International Freight Forwarders Association). Presently the CCTT consists of 114 members from 22 countries, including major railways and shipping companies, operators and forwarders, ports and stevedoring companies, state organisations, administrations and municipalities, telecom and marketing companies, as well as security services and media.
Yakunin said that in 2011, when a 27-percent growth was reached on the Trans-Siberian Railway, 563 thousand containers were transported. He also stressed that “very good prospects for growth remain, according to realistic forecasts of experts, at least twice.” Achieving such growth, he said, “will allow the transport sector to get additional revenues in the amount of at least 2 billion US dollars annually.”
The Russian Railways chief said that the “Trans- Siberian Railway is currently viewed as a transcontinental line connecting the Asia-Pacific region with Russia, the Baltic States and Europe.” Among the promising directions of its further development he named boosting of export-import cargo shipments and transit.
The main purposes of the CCTT are: attracting transit and foreign trade cargo to the Trans-Siberian route (TSR); coordinating activities of companies that participate in international cargo transportation on the TSR - to ensure high-quality delivery of goods and development of economic relations between countries of South-East Asia, Far and Middle East, Central Asia, and Europe based on using the infrastructure of Russian railways.
Vladimir Yakunin called the CCTT meeting “a unique international venue for the development of a common approach to the transportation of cargoes that makes it possible to reduce barriers.” “The creation of a harmonised system of international transportation across the Eurasian continent is a challenge of time,” the RZD president stressed.

  wanderer53 Sir Nigel Gresley

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Turkmenistan, Uzbekistan to Use Their Transit Potential

03.10.2012 (10:22)

Turkmenistan and Uzbekistan have agreed to use their transport and transit potential in the China-Caucasus-Turkey corridor.
The joint statement of the presidents of Turkmenistan and Uzbekistan Gurbanguly Berdymukhamedov and Islam Karimov stresses the importance of implementing transport project Navoi-Turkmenbashi-Baku-Tbilisi-Kars that will ensure wide access to international markets. The agreement to this effect was signed on Tuesday after the presidents’ talks during Karimov’s visit to Turkmenistan.
  wanderer53 Sir Nigel Gresley

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Russian Railways Logistics sends first container train from China to Europe with the CIM/SMGS

Russian Railways Logistics in cooperation with its subsidiary YuXinOu (Chongqing) Logistics Co., Ltd. sent first container train from China to Europe with the CIM/SMGS Common Consignment Note. Multi-client train, which consists of 42 forty-foot containers and loaded with Acer, ASUS and other producer cargo, left Chongqing (China) on October 31 for Poland and Germany. Kaztransservice (Kazakhstan) and Belintertrans (Belarus) participated in this forwarding project as transit partners for Russian Railways Logistics. “Introduction of CIM/SMGS Common Consignment Note is a result of the two-year work of the railway ad-ministrations of all transit countries,” - says PavelSokolov, the CEOof Russian Railways Logistics. – “Shippers save transit time due to container demurrage decrease at the border stations.” Moreover, this document reduces consumer spending on freight forwarding. The client is usually charged for re-issuing of the CIM consignment note in place of SMGS note for each shipment at the border stations. The CIM/SMGS Common Consignment Note eliminates these extra payments. The common consignment note is a customs document provided in paper and electronic form based on the EU requirement about prior authorization. RZDL coordinates interaction of companies participating in freight forwarding. Special attention is given to transit areas, where the narrow-gauge railway converts into the broad one, e.g. Dostyk station in Kazakhstan, and the broad-gauge railway switches to the narrow one at Malaszewicze station in Poland. Development of the China-Europe corridor will lead to forwarding speed-up by up to two days and will further expand the potential client base on this route. The joint venture YuXinOu (Chongqing) Logistics Co., Ltd, founded by the Transport Holding Chongqing (CQCT), China Railway International Multimodal Transport (CRIMT), JSC Russian Railways Logistics, Schenker China Ltd. and JSC Kaztransservice, was registered in Chongqing (China) in May 2012. RZD Lo-gistics owns 16.3% of the share capital of the joint venture. The main activity of YuXinOu is operating regular container transportation by rail from Asia (Chongqing, China) to Europe (Duisburg, Germany). Company offers freight forwarding, customs clearance, consulting and other services related to international container train transportation. The final goal of the joint venture is to create a logistics company with 3 PL door-to-door services.

  wanderer53 Sir Nigel Gresley

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THE first container train with a CIM/SMGS common consignment note was despatched by Russian Railways Logistics (RZDL) in cooperation with its Chinese subsidiary YuXinOu Logistics on October 31.  

  The train, which left Chongqing, China, destined for Poland and Germany, was carrying 42 40ft containers for various customers. Kaztransservice, Kazakhstan, and Belintertrans, Belarus were also involved in the inaugural service as RZDL's transit partners.

"Introduction of CIM/SMGS common consignment note is a result of two years of work by the railways of all the transit countries involved," says Mr Pavel Sokolov, CEO of RZDL. "Shippers save time due to the reduction of container demurrage at border stations."

The system will also save money. The client is usually charged for re-issuing the CIM consignment note in place of SMGS note for each shipment at border stations. The introduction of the CIM/SMGS common consignment note will eliminate these extra payments.

The common consignment note is a customs document which is issued in both paper and electronic form according to European Union requirements for prior authorisation.

  wanderer53 Sir Nigel Gresley

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Russian Railways Logistics to cut two days from China - Europe timings

02 November 2012



INTERNATIONAL: The YuXinOu (Chongqing) Logistics joint venture has despatched its first container train from China to Europe using the CIM/SMGS Common Consignment Note.

Using documentation meeting the legal requirements of both OTIF's CIM and OSJD's SMGS rules reduces costs to shippers, as there is no need to issue new notes at national borders.

The first train left Chongqing for Poland and Germany on October 31, carrying 42 containers for customers including Acer and ASUS.

Russian Railways Logistics is working with Kazakhstan's Kaztransservice and Belarus firm Belintertrans on co-ordinating the project. They are also working to expedite traffic through the breaks of gauge at Dostyk in Kazakhstan and Malaszewicze in Poland, with the aim of cutting two days from the current Chongqing - Duisburg journey time of 16 to 20 days for 10 769 km.

'Introduction of the CIM/SMGS Common Consignment Note is a result of two years of work by the railway administrations of all the transit countries', according to Pavel Sokolov, CEO of RZDL. 'Shippers save transit time due to the decrease in container demurrage at the border stations.'

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