Red sea crisis highlights vital role of China-Europe rail freight

    Interest in cross-border services increases due to concerns over shipping delays, costs

    By LUO WANGSHU | CHINA DAILY | Updated: 2024-04-08 07:00
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    The bustling railway container central station in Chongqing is seen on March 25. [Photo for China Daily]

    Resilient service

    Wang, from the NDRC, said the freight service emerged in response to the steady growth in trade between China and Europe, and it has shown its resilience amid the impact of the COVID-19 pandemic, the Ukraine crisis and other factors.

    "It has grown into a vital component of the transcontinental transportation logistics corridor across Asia and Europe, and is also an indispensable part of the international transportation and logistics system," he said.

    The China-Europe freight train service is economically advantageous to products with more added value, Wang said, adding that the service network covers vast areas and is continuing to grow.

    With monthly volume of about 150,000 containers, the service has a large transport and supplementary emergency capability, Wang said. "The geopolitical environment along the main route is generally safe and stable, and the diversification of routes is deepening, which can effectively meet certain emergency logistics needs," he said.

    He, from Hunan University, said that in times of maritime disruptions like the one in the Red Sea, the China-Europe Railway Express is crucial in maintaining the flow of goods amid geopolitical tension and natural challenges.

    "By providing a stable and reliable alternative, the rail service can help mitigate some of the supply chain instabilities caused by such maritime disruptions," she said.

    Despite the growing recognition of the rail corridor's role, Wang said the transportation capacity of freight trains accounted for only a small portion of the entire international trade transportation market. Maritime shipping remains the dominant mode of such transportation, he said.

    "In the short term, it (the railway service) can play a limited role in emergency supplementary support for maritime shipping, enhancing the resilience and security level of related industrial and supply chains," he said.

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