Logistics provides solid industry backing

City's improved transport network guarantees foreign business success

Chengdu Shuangliu International Airport is one of the largest air hubs in China.[Photo / China Daily]

On Jan 2, a train loaded with electronic products arrived in Lodz, a city in central Poland, after a 15 day journey from China's Chengdu. As the rail route started operating regularly in March, it has become the fastest railway freight route between China and Europe.

The regular train, traveling once a week between the two cities with a distance of more than 10,000 kilometers, cuts the transport time from 40 to 15 days, according to Chengdu Logistics Office. Previously, products made in Chengdu had to be transported to Shenzhen or Shanghai before being shipped to European ports.

The opening of the Chengdu-Lodz direct rail route is the latest effort of the inland metropolis to improve its infrastructure and establish itself as a major logistics hub in China. According to the Chengdu government's work report, the city aims to exploit its advantage in air and railway transportation to realize its goal of being a "logistics hub".

Zhang Chi, director of the logistics coordination center of the Chengdu Logistics Office, said that at present, the cost of rail freight is more than two times that of shipping, which is the main reason behind its comparatively slower growth rate. But if the efficiency of the rail freight is improved, and given it is faster than shipping, rail transportation will become increasingly popular.

"Take the Chengdu-Lodz direct rail route for example. It is vital for both destinations to have equal goods to exchange. If the train can be fully loaded in both directions, the cost will be reduced. Otherwise the cost will be very high," said Zhang.

Besides rail, the city is also developing its air transportation.

The city's air throughput was greatly boosted by the opening of a brand new terminal in July. Chengdu is now the fourth major air hub in China, with 18 direct international flight connections and 12 code-sharing global links. Key international flights connect the city with international cities including Tokyo, Amsterdam, Abu Dhabi, and Bangalore. By 2015, there will be at least 30 direct passenger and freight flights from Chengdu to major cities across the world.

"In developing Chengdu's direct flight destinations, we are targeting the major air hubs of the world. This means that we will not seek the absolute number of direct flights. By setting up interline agreements, we can reach many locations around the world," Zhang said.