Freight train becomes key link between China, Europe

Mutual benefit

The China-Europe freight train service has created a faster trade route to help more Chinese-made products such as electronics, home appliances and new energy vehicles reach Europe more rapidly and with cheaper price tags. This has provided more affordable options for European consumers, while also opening up new trade channels for European manufacturers and traders to enter the Chinese market.

The trains departing from cities such as Jinan and Qingdao in Shandong province have provided crucial support for major companies such as Haier and Hisense in their international trade efforts. To date, more than 20,000 import and export enterprises have been using the service, have shipped over 840,000 TEUs of goods and facilitated a trade value of over 100 billion yuan, the company said.

It also facilitates delivery of European goods to China. Poland has a long history of cultivating apples, and the China-Europe freight train service has made it easier for Polish apples to be shipped and sold to Chinese markets.

While it takes about 40 days for freight by sea to reach China, the freight train service can cut the journey between China and Poland to about 14 days. Last year, the value of apples imported by China from Poland grew by 23.2 percent compared to 2022, according to the company.

At a bonded store at Hankou Railway Station in Wuhan, Hubei province, many visitors shop for international products delivered by China-Europe freight trains. The products at the store are imported via freight trains returning from Europe, bringing goods from countries along the rail network, including Germany, Italy, Poland, Turkiye, Russia and Kazakhstan.

The store offers 10,000 such products ranging from food and beverages to crafts and cosmetics.

Li Wenyan, who is in charge of handling the importation of bonded goods from the China-Europe freight train in Hubei, said: "We import high-quality, distinctive products from countries along the China-Europe Railway Express to China. Currently, there are over 10 categories of goods being imported, including grains, oils, food, beverages, instant products, home and personal care items and craft.

"Most of these goods are sourced directly from their origin, which makes them diverse, high-quality and cost-effective," Li said. "Snacks, drinks and beauty products are the bestsellers. Thanks to tax incentives, the prices at our stores are even more appealing."

A traveler from Hunan who purchased two bottles of imported British coffee candies said: "I wasn't aware of the train connection previously, but it provides a wide range of imported goods at reasonable prices."

Pilot programs for selling international products on high-speed trains and at railway stations — transported by China-Europe freight trains — have already been initiated. The customers benefiting from the products available in the station and physical stores represent only a fraction of those enjoying the benefits of the China-Europe freight train service. Numerous Chinese consumers are now relishing high-quality and affordable European products due to the railway network. For example, Zhejiang Mundiver Import & Export, a foreign trade company, has experienced the advantages. The company has been utilizing the service to transport goods from Spain to China.

Kong Zhijian, the company's marketing manager, said: "Since 2008, our company has been engaged in Spanish import trade. We previously relied on sea transportation. However, since the commencement of the China-Europe freight train departing from Yiwu in Zhejiang province in 2014, our company has been utilizing this service, significantly streamlining our import channel."

"Compared to the conventional sea shipping method, which typically takes 45 days and necessitates a secondary transfer upon reaching Ningbo Port, the freight train service can transport goods directly to Yiwu (from Europe) in under 20 days," he said.

The company has been conducting import trade with Spain since 2008, importing products from Europe and other countries, including mineral water, olive oil, sunflower oil, imported wines, and ham, via the China-Europe freight train. The import volume has been progressively increasing each year.

"This shortened transportation cycle (via the China-Europe freight train) aids in reducing the shipping time for goods like wine, simplifying our cash flow management. This aspect is crucial for our business," Kong emphasized.

Apart from benefiting Chinese people, more residents from across Eurasia are also benefiting from this corridor.

For instance, the freight train service has led more than 100 logistics companies to settle in Duisburg Port, creating more than 20,000 jobs.

In addition, many China-made products are easily shipped to Europe thanks to the service. Chen Xu, from the Wuhan Office of China Railway Container Transport, said the service has delivered new energy vehicles from Hubei province to European countries.

"We offer combined logistics solutions, including road, waterway and railway, to customers, attracting export shipments of new energy vehicles from surrounding regions," he said.

In the first 10 months of this year, the Wuhan office shipped 133 containers of NEVs. The total value of NEV exports exceeded 57 million yuan ($7.8 million). Major car brands include Dongfeng, BYD, Chery and Geely, he said.

In Ganzhou, Jiangxi province, the development of the China-Europe freight train has helped its local furniture market go global.

Liao Xiang, manager of Jiangxi Sanyou Furniture, said: "Our company primarily manufactures office furniture and outdoor furniture, with its original market focusing mostly on domestic sales. With the opening of the China-Europe freight train service from Ganzhou, the export logistics costs have been significantly reduced. We now use the service to sell high-quality office and outdoor furniture to Hungary, Italy and other countries."