RDZ Logistics, a subsidiary of the Russian Railways, has helped start a joint venture to organize freight rail transit between China and Europe.
The venture was first announced last week by Vladimir Yakunin, Russian Railways president, during an address to the St. Petersburg International Economic Forum.
The venture, YuXinOu (Chongqing) Logistics, is registered in Chongqing, China, and was founded by the China Railway Co. for International Multimodal Transport (CRIMT), the joint stock company Kaztrans, RZD Logistics, Schenker China Ltd., and Transport Holding of Chongqing (CQCT).
The final language of the agreement shows that 51.1 percent of the charter capital is coming from Chinese shareholders, while foreign investments accounts for roughly 16.3 percent of the joint venture.
Initially, YuXinOu will organize rail container shipments between the cities of Chongqing and Duisburg in Germany. The first container train is scheduled to leave at the end of this month. YuXinOu will then transition to also offering consulting, customs clearance, information, and other related services around international rail traffic, evolving into a third-party logistics service company.
A goal for further down the road is to introduce more markets and stops throughout Europe, leveraging the goods located in China and the knowledge of partners like RDZ. Currently, RZD is using its domestic shipment experience and is troubleshooting any technology issues.
The venture hopes to capitalize on goods from the Chinese province of Sichuan, which is expected to ship 5,800 TEUs to Europe by the end of this year. - Geoff Whiting