New | China’s ‘One Belt’ rail freight strategy off to slow start as return cargo lacking
Volume of cargo is mostly one way for now - China to Europe - leaving half empty containers on the return journey
The flagship rail project of China’s new Silk Road strategy is off to a slow start as mainland logistics companies struggle to fill up containers with return cargo.
European-bound freight trains have become a key element in the vision to build a Silk Road Economic Belt as part of the “One Belt One Road” initiative to stimulate rail trade between Chinese inland cities and Europe.
In the past few years as many as 11 Chinese cities have established rail freight services to Europe, including Chongqing in China’s west which has been shipping Hewlett-Packard computer parts to Duisburg in Germany since 2011.
The 11,170 km land route takes only 11 days, saving more than 20 days over ocean shipping.
However, finding return goods to fill the freight trains has been a headache because traditionally the volume of Chinese imports from Europe are a lot less than exports out of China.
“Only single-digit containers return every month so we can’t even fill a train,” said Gong Qinghua, a sales director of a freight forwarder operating between Yiwu, an east China city famous for gift items, and Madrid in Spain. This compares to eight fully booked trainsthat head to Madrid monthly.
