Gefco’s new train route ties Chinese ports to Central, Eastern Europe
May 27, 2014 Category Logistics, Railway transport
Gefco Group, the international arm of the Russian Railways specializing in automotive and industrial goods logistics, is launching a new door-to-door route between China and Europe. The new service allows overland cargo and ocean freight collected at China’s major ports to be delivered via Alataw Pass or Manzhouli, in China’s Xinjiang Uygur and Inner Mongolia autonomous regions, to such countries as Russia, Ukraine, Belarus, Poland, Germany and Hungary. Christophe Poitrineau, Gefco’s Asia President, said that since rail service tends to be more expensive than sea freight, the company is working on solutions for better back-flow transportation, so costs can be lowered. “Now, it is often a one-way operation from China to Europe, and when the train returns, it is often empty. There is work to be done on both sides – the work of unifying one custom system along the Eurasian line,” Poitrineau said. Although there are regular block trains from Chongqing, Chengdu, Zhengzhou and Yiwu to both Europe and Central Asia, most haven’t been able to operate bi-directional services yet. As trade accelerates, Poitrineau said more products from Europe will be transported to China using rail routes in the coming years. Gefco is considering to invest in warehouse facilities in the Shanghai Pilot Free Trade Zone (FTZ). Automotive logistics is Gefco’s key market in China. Gefco has established two joint ventures that serve Dongfeng Peugeot-Citroen Automobile (DPCA) and Changan PSA Automobiles. It also opened a new branch in Chengdu in 2013. Headquartered in Courbevoie, France, Gefco’s global revenue hit €4 billion in 2013, and revenue from its China operation totaled €100 million the same year. Gefco will set up new branches in Ningbo and Dalian in 2014 to enhance its ocean transport capabilities. It also sees possibilities in establishing branches in Kunming and Urumqi, the China Daily reports.
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