RZD Logistics, a subsidiary of Russian Railways, has co-founded a joint venture to organise freight transit by rail between China and Europe.
Vladimir Yakunin, President of Russian Railways, announced the creation of the JV on 21 June 2012 when addressing this year’s St. Petersburg International Economic Forum. The JV YuXinOu (Chongqing) Logistics Co. Ltd is registered in the city of Chongqing. Its founders are the Transport Holding of Chongqing (CQCT), the China Railway Company for International Multimodal Transport (CRIMT), RZD Logistics, Schenker China Ltd. and the Kaztransservice Joint Stock Company.
With 51.1% of the charter capital, the Chinese are the major shareholders, while the foreign investors hold equal shares of 16.3% in the JV.
The main activity of YuXinOu (Chongqing) Logistics Co. Ltd. will be organising regular rail container shipments between Chongqing in China and Duisburg in Germany. The first container train from Chongqing to Duisburg is scheduled for the end of June 2012. The company will also provide freight forwarding, customs, information, consulting and other services related to the provision of international container traffic. The ultimate goal is to create a logistics company which provides third-party logistics services (3 PL) “door to door”.
The company’s business model provides for RZD Logistics to deliver the necessary support, including its knowledge of the Russian freight transport market, as well as technological issues associated with the carrier’s operations. It is forecast that the volume of freight to be carried by the new company from the Chinese province of Sichuan to Europe will reach around 5,800 twenty-foot equivalent units (TEU) by the end of 2012.
Potential clients of the joint venture are major international companies in electronic information technology, manufacturers of components and units, machinery, the chemical, aviation and software industries and in other sectors which are concentrated in the Chongqing metropolis.