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Made in China
MADE IN CHINA EBRD-COM circumventing Russia rail study
The European Commission (COM) is funding an analysis carried out by the European Bank for Reconstruction and Development (EBRD) on identifying the most sustainable transport connections between Central Asian economies and the extended Trans-European Transport Network (TEN-T) of the EU. The study, set for completion by the summer of 2023, will also include action proposals, such as where infrastructure investments should go. The study aims to enable the Middle Corridor to take over the volumes thus far transported through Russia and Belarus along the Northern Corridor of the New Silk Road. EBRD estimates that some 80k TEUs will follow the Middle Corridor this year, close to its max capacity of 100-120k. In contrast, the Northern Corridor saw 1.5m 20’s between Far East Asia and Europe in 2021. “A diversion of transit cargo exceeding 10 per cent of the Northern Corridor’s tonnage will require large investment across the entire corridor, and its economic efficiency is yet to be assessed. The EBRD estimates immediate investment needs for Middle Corridor infrastructure upgrades to be in the region of €3.5 billion,” the organisation said in a press release. The initial findings point to several key challenges standing in the way, including high tariffs, insufficient sea shipping capacity and irregular shipping networks, port performance inefficiencies, lack of international agreements, shortage of European contacts in Central Asia, non-electrified railroads, rolling stock in need of modernisation, and the Caspian Sea being not always navigable. “Eventually, the success of the Middle Corridor will depend on the ability of all countries along the route, including Kazakhstan, to work seamlessly, eliminate trade barriers and set up regular and reliable freight schedules. If the Middle Corridor is to become a viable transportation alternative, it must offer a predictable and reliable environment for all parties involved,” EBRD summed up. Xi’an Free Trade Port Construction and Operation has linked Xi’an and Małaszewicze with a 12-day transit time service that carries e-commerce parcels & international letters. In Poland, the shipment is taken over by Polish Post for onward distribution throughout Europe.
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Third rail terminal between China and Kazakhstan
Shahrat Nureshev, the Kazakh Ambassador to China, has revealed that a third rail border crossing will be added to handle containerised freight passing between the two economies as well as in transit to and from Europe. The new facility will be in Tacheng in the Ili Kazakh Autonomous Prefecture. However, no more details were presented. The Tacheng terminal will join Alashankou and Khorgos, which handle 90% of China-Kazakh rail cargo.
COSCO drops its DGT shares
The Chinese have sold their 30% stake in Duisburg Gateway Terminal (DGT) to duisport, the dry port’s authority. The deal was already cut in June 2022, but the news bit kept hidden until late October. The €100m-worth DGT is an investment launched in 2019 by duisport and COSCO (each holding 30% of the project’s shares), with the help of HTS and Hupac (the remaining 40% split in half). The brownfield multimodal project, to be erected on Duisburg’s coal island, will span 235k m2 and comprise 12 rail tracks (730 m long), three barge berths, and 60k m2 of container depot plus a further 20k m2 reserved for warehouses. The facility’s handling capacity is estimated at 800-850k TEUs/year, taken care of by six gantries. DGT is scheduled to come online in mid-2023. Construction works kicked off this March.
New China-Italy rail service
Before November 2022’s end, Hupac had started connecting Xi’an and Milan. Transit time amounts to 25-28 days. The service’s trains cross the Chinese border in Manzhouli, running on their way to Italy via Russia, Belarus, Poland, Germany, and Austria.
