Silk Road. Race hasn’t started yet but it’s already lost?

17.02.2017

Maxim Kharchenko freight market analyst at "UkrAgroConsult"

On January 18, the direct container train from China arrived to cargo railway station in London for the first time ever. The PRC once again demonstrated its interest in European markets expansion. The route Yiwu-London went through 7 countries: Kazakhstan, Russia, Poland, Germany, Belgium and France. It is noted that London became the 15th city that received the direct rail link with China within the project "New Silk Road" through the Trans-Siberian Railway. During 18 days the train covered the distance of 12 thousand kilometers, while the standard container transporting cost equaled USD 4,600.

It should be noted that the railway delivery is twice faster than shipment by sea. Containers would reach the destination point during 30-35 days by sea. But it is worth considering that delivery cost by sea is twice cheaper.

How this news threaten Ukraine? This train casts doubt on the prospects for development of Ukrainian-Georgian project "Silk Road" beyond Russian Federation.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.

 

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