Home / Land / China’s rail freight project “One Belt” has faced a slow start up
rail freight

China’s rail freight project “One Belt” has faced a slow start up

The “One Belt” is a rail freight project of China. As the project was completed recently, the rail freight was waiting for a startup. But the project has faced a slow start up as the logistic companies have faced a tough time in filling the containers of the rail. The “one Belt” project will connect 11 cities in China with the European cities. The “One Belt One Road” project was initiated with an idea of having road cargo transportation between the inland cities in China and European cities. In the past few years, a total of 11 cities have started having rail freight transportation with the European cities. The major city among the 11 was the Chongqing, which was shipping Hewlett Packard computer parts to The Duisburg city in Germany from the year 2011.

Over the road cargo transportation, it has taken only 11 days for shipping the goods from China to Europe. But in case of the water ways, it will take 20 days for shipping the same. Thus the road cargo services have saved a lot of time, says the business people. The distance that the rail route covers from china to Europe is 11,170 kms. But the major issue happens only during the return shipment. This is because the goods that are shipped from china to Europe are always higher than the goods that are shipped from Europe to China. This is why the ‘One Belt” project has faced a slow start up.

Gong Qiughua, who is a sales director of freight forwarder operation between Yiuw in China and Madrid in Spain, has told that only single digit containers will be coming back to china and thus the rail will never be filled. But when the train leaves to Madrid, it will be completely filled and the whole train will be fully booked. The products that are exported from Yiuw are very famous in Europe, he added. But in case of Yiuw, which is a very small town, the demand for the European products is very less.

The major goods that are imported from China to Europe are the Car parts and consumer goods. Also the food items are exported to Europe from China in large scale. According to the data available with the Chinese Railway Corporation, in the first half of 2015, 50 returns have happened from Europe to China. Whereas the total number of shipments happened from China to Europe was 200 times. Another major problem that occurs with this project is the wait-and-see approach of the Europeans towards the China rail service.

Source From: http://theloadstar.co.uk/slow-start-for-chinas-one-belt-rail-freight-strategy-with-lack-of-return-cargo/