“Russian Railways” plans to develop route from China to Europe bypassing Kazakhstan

31.05.2017

Cargo transportation from China to Europe not through the territory of Kazakhstan, but through Mongolia will reduce costs by 15-20%. In response to growing demand, “Russian Railways” works on cargo transportation between China and Europe through Mongolia to attract small and medium shippers using China-Europe route, as some large shippers, for instance, the Chinese giants of e-commerce already deliver cargoes through Mongolia. According to “Russian Railways”, new routes will mainly link eastern Chinese provinces, including Shanghai, with Russia, reports UkrAgroConsult.

 “Russian Railways” began cargo routing through Naushki, and soon the company will offer other railway services to China-Europe direction through Mongolia. Savings will be achieved by the reduction of transit time and lower tariffs for railroad transportation in Mongolia compared to Kazakhstan. According to “Russian Railways”, cargo delivery from China to Russia through Kazakhstan takes from 20 to 21 days, and through Mongolia – it takes only about 14 days.

Shippers will benefit from the delivery time reduction and from the fact that duties for cargo transportation on a container train (from 20 to 25 containers) through Mongolia are 30-50% lower than for similar cargo in Kazakhstan. By the way, transportation of such cargo through the territory of Kazakhstan will cost almost USD 70 000.

 

UkrAgroConsult

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