China-Europe Rail Freight Tops $520 Billion in a Decade

Rail freight connecting China and Europe has experienced a decade of significant growth, facilitating over 130,000 journeys and generating trade worth more than $520 billion. This expansion means that the monthly volume of goods now transported by rail equals the total carried in an entire year back in 2016.

Liang Linchong, director general of the Regional Opening-up Department at China's National Development and Reform Commission (NDRC), revealed these figures at a press conference. He noted that the number of trips on this commercial rail link surged from 1,702 in 2016 to over 20,000 last year, reflecting an average annual growth rate exceeding 30 percent.

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The number of trips carried out on that railway connection increased from 1,702 in 2016... to more than 20,000 last year, which translates into an average annual growth rate of over 30 percent.

Improvements in customs processes, now completed in an average of 30 minutes due to digitalization, and the implementation of fixed train schedules have drastically reduced transit times. Routes like the one between Xi'an and Duisburg have shortened from 15 days to 11 days. Furthermore, trains have been operating at 100% capacity for 46 consecutive months, indicating strong and consistent demand.

The balance of goods shipped from China to Europe and vice versa is approaching a one-to-one ratio, signaling robust bidirectional demand. The expansion of routes, including new connections via the Caspian Sea corridor and from St. Petersburg to Germany, has increased the route's attractiveness. Geopolitical instability affecting maritime shipping has also benefited China-Europe rail freight, particularly for companies like Midea and Gree, which have reduced delivery times to Europe from about 40 days to around 15 days amid a heatwave.

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The trains have been leaving at 100% of their cargo capacity for 46 consecutive months.