New logistics route boosts shipments

The time and cost to ship a single piece of luggage from a workshop in Baigou, Hebei province, to a storefront in Almaty, Kazakhstan, were greatly reduced thanks to a new cross-border logistics route that aims to help strengthen relations between Chinese small and medium-sized enterprises and customers in Central Asian countries.

The route connecting Baigou, a bustling commercial hub in Baoding city, to Almaty is set to transform trade dynamics between China's northern areas and Central Asia.

Launched on April 15, the route can slash delivery time by 40 percent and reduce costs by 25 percent, according to Zhang Guiyu, general manager of Sitong Logistics in Baigou new area.

The first trucks departing from the Hebei Export Commodities Exhibition Center carried 20 metric tons of goods worth 3 million yuan ($418,000), including luggage, plush toys and apparel from 25 local manufacturers.

The cargo travels about 4,000 kilometers via road, passing through the Horgos Port in the Xinjiang Uygur autonomous region before reaching Almaty in seven to eight days, a significant improvement over the previous 15-day journey, Zhang said.

"Departures scheduled approximately every two to three days and 50 percent faster customs clearance will probably help us achieve about 3 billion yuan ($417.7 million) in cargo value this year," he said.

The route employs a "smart consolidation and dispatch" model, aggregating goods within a 300-kilometer radius of the Beijing-Tianjin-Hebei region within six hours, Zhang added.

Its opening has drawn praise from companies in the area.

"Our seasonal products require fast turnover. With this route, 600 boxes of luggage now cost around 60,000 yuan for the transport, down from more than 90,000 yuan over rail transit," said Xu Wenjia, general manager of Baoding Qiandou Luggage Manufacturing Co.

She said she expects sales in Central Asian countries to rise by 20 to 30 percent as the streamlined logistics enhance competitiveness.

Cai Haopeng, deputy director of the Baigou New Area International Trade Service Center, said there is a strong demand for light industrial products in the Central Asian countries, and the new route will play a key role in getting such goods to the region more efficiently.

"The opening of this dedicated line can quickly fill market gaps, providing a fast lane for domestic small and medium-sized enterprises to access the Central Asian market," Cai said.

Building on this momentum, other companies added that improved logistics and shifting trade preferences are further driving cross-border business.

Cai Yiguang, deputy general manager of Hebei New Business Format Enterprise Service Co, noted that Central Asian buyers are increasingly favoring Chinese daily necessities and fast-moving consumer goods.

"Delivery time and cost savings directly translate to higher market share for our clients," he said, citing a $0.30 per kilogram reduction in transport costs.

Sitong Logistics has established an overseas warehouse and a product showroom in Almaty, with plans to expand routes to Bishkek in Kyrgyzstan and Dushanbe in Tajikistan.

Zhang, from Sitong Logistics, visited Kazakhstan at the end of May to explore more trade and e-commerce opportunities.

"Our overseas warehouses and localized services will help Chinese brands take root here," he said.

He added that based on consumer demand, the company is in the process of establishing a team in Kazakhstan, developing localized marketing channels and providing services such as brand management and supply chain management.

Sitong Logistics is also partnering with 1688.com, a B2B platform of Alibaba Group, to leverage e-commerce platforms and livestreaming sales in Kazakhstan, exploring more links from the country with Baigou.

Historically known as a "luggage capital", Baigou has evolved into a key pilot zone for cross-border trade transformation and market procurement trade.

Jin Xuefei, deputy director of Baigou New Area Administrative Committee, emphasized the government's commitment to optimizing the route's efficiency by streamlining customs procedures, upgrading infrastructure such as smart ports and enhancing collaborative synergy to resolve bottlenecks.

"The government will further improve the policy support system, continuously optimize the international logistics network, and foster new foreign trade momentum," Jin said.

She added that Baigou will strive to build itself into an international trade and logistics hub.