China-Europe freight train services faster, greener

When the X8083 China-Europe freight train from Chongqing rumbled into the unloading station in Duisburg, Germany, on Dec 3, it set a record. It was the 100,000th trip, and marked the delivery of over 11 million twenty-foot equivalent units of goods valued at more than $420 billion.

Carrying electronics and daily consumer goods, the train's cargo was eventually dispatched across Europe.

The journey began at Tuanjie Village Station in Chongqing on Nov 15 and crossed the border at Alashankou Port on Nov 20.

"This milestone is a remarkable achievement and a testament to the robust trade partnership between China and Europe," Michael Schumann, chairman of the German Federal Association for Economic Development and Foreign Trade, told China Daily.

"The China-Europe Railway Express has become a vital artery in the global supply chain, providing a reliable, efficient, and resilient alternative to traditional maritime and air transport," Schumann said.

The train service, initiated in 2011 and unifying its brand under China Railway Express in 2016, provides international container rail services running on fixed schedules, routes, and departure times, connecting China with Central Asia and Europe.

The train network now handles over 53 categories of goods, totaling more than 50,000. The annual transport value has grown from $8 billion in 2016 to $56.7 billion in 2023.

"We've seen an increase in high-value goods, such as home appliances and automobiles, especially after September 2022 when restrictions were lifted on transporting new energy vehicles," said Ouyang Bing, general manager of the Logistics Industry Development Center of China Railway Materials Corporation, a carrier for the China-Europe freight train service.

"Against the backdrop of building a high-quality Belt and Road Initiative, the main reasons for this change lie in the establishment of an efficient and diversified transport system, boosting market vitality and catalyzing the upgrading of industrial structures," he told China Daily.

After years of development, the service now reaches 227 cities across 25 European countries and connects more than 100 cities in 11 Asian countries, with its network covering nearly all of Eurasia, according to China State Railway Group data.

This vast expansion, however, has also come with logistical challenges, particularly regarding the different rail gauges used across borders.

"At transfer stations, parallel railways are set up, allowing containers from one gauge to be lifted and loaded onto empty cars of the other to continue on different gauge tracks," Ouyang said.

In addition to overcoming rail gauge issues, technological innovations have played a crucial role in improving operational efficiency. The launch of the 95306 freight service platform has significantly reduced handling times.

"Clearance efficiency has improved with the nationwide integrated policy, allowing better information sharing and coordination between customs, speeding up trade," Ouyang said, adding that logistics companies collect documents in advance and submit them for customs pre-approval, ensuring a smoother process.

In May 2024, the service surpassed 90,000 trips. The time required for the service to total 10,000 trips has been reduced from 90 months in its early days of operation to just 6 months now.

"The China-Europe freight train has achieved significant success in promoting cross-continental trade, with an improved transport network, reduced transaction costs, and more convenient shipping services being the key factors," said Jing Wenzhi, associate professor at the School of International Economics and International Relations at Liaoning University.

"It reflects the optimization of China's foreign trade structure," he told China Daily.

The share of return trains has risen from less than 10 percent in the early stages to more than 60 percent, People's Daily reported.

"The surge in return train rates is driven by technological innovation and improved transport efficiency along the train routes," Jing said. "It has also boosted the logistics industry in countries along the train routes, driving the growth of related industries and increasing employment opportunities."

For example, in Duisburg, the China-Europe freight train has fostered the growth of new logistics and trade centers, as well as industrial parks, attracting over 100 logistics companies and creating more than 20,000 jobs locally, People's Daily reported. In Malaszewicze, Poland, the launch of the network has led to a significant increase in business volume.

"The freight train service has unlocked unprecedented opportunities for European SMEs, including those in Germany," Schumann said.

"The China-Europe Railway Express has leveled the playing field, providing SMEs with cost-effective and reliable transport solutions that make it feasible for them to export their goods to China and source raw materials or components from the Chinese market," he said.

The transportation cost of the China-Europe freight train is about one-fifth of air transport, while the transit time is roughly one-fourth of sea transport, according to the China-Europe Freight Train Development Report, compiled by the Office of the Leading Group for Promoting the Belt and Road Initiative and China State Railway Group published in 2022.

Its average carbon emissions are one-fifteenth that of air transport and one-seventh that of road transport, the report said.

"It provides faster delivery times compared to shipping by sea, striking a perfect balance between efficiency and environmental responsibility," Schumann said.

"Promoting such transportation modes not only advances sustainability but also underscores the shared responsibility of China and Europe in fostering a greener future for global trade," he said.