The Chinese President Xi Jinping’s ongoing visit to Europe has once again highlighted the strategic importance of the BRI in the world. The BRI’s trans-regional and trans-continental rail transport and seaports have become one of the most driving forces of international cooperation and economic globalization, connecting communities, countries and continents around the globe.
This visit has the potential to bolster the stable and robust relationship between China and Europe, serving as a beacon of stability amidst global turbulence. With the ongoing Israel-Palestine conflict disrupting the Blue Economy in the Red Sea, freight forwarders are increasingly relying on the China-Europe Railway Express as an alternative transportation route amidst the crisis in international shipping.
According to recent reports, freight traffic between China and Europe has reached an all-time high, with 17,523 trips in 2023. These trips carried a total of about 1.9 million twenty-foot equivalent units (TEU), which is an increase of 6 and 18 percent year on year, respectively. In addition, the number of China-Europe freight train trips has increased 9 percent year-on-year, with 2,928 trips made in the first two months of 2024. During this period, the route carried a total of 317,000 TEUs, which is an increase of 10 percent compared to the previous year.
The China Railway Express (CRE) serves as a valuable complement to maritime routes and showcases Chinese investment in collaboration with other nations. Benefitting over 200 European cities, it revitalizes trade along the ancient Silk Road, fostering collaborative and sustainable trade across Eurasia. In January-February alone, nearly 3,000 trips were recorded, with new routes linking major Chinese cities to destinations in Georgia, Azerbaijan, and Turkey. The CRE has expanded significantly in recent years, facilitating increased trade volume and enhancing economic cooperation throughout Eurasia.
As a result, China has further enhanced closer cooperation and strengthened trade ties with Central Asia and Europe. A considerable number of companies specializing in international trade, smart manufacturing and supply chain service have made their mark along the routes.
Industries such as manufacturing, trade and commerce, finance and information have seen continuous enhancements. More and more European products have entered the lives of the Chinese people, while “Made in China” is becoming more popular in Europe. So far, the service has delivered a total of over 50,000 types of goods to the related regions, with growing popularity stemming from its safety, reliability and resilience against external disruptions.
The China-Europe freight train service is also highly cost-effective. The BRI removes uncertainty and disruption amidst the Red Sea crisis, claiming the solution to supply shocks is more supply chains. It is experiencing a boom. The network is denser, with more frequent trips and improved efficiency. This translates to faster deliveries and a wider range of goods being transported, optimizing the import and export structure.
Several Chinese customs offices are expediting the clearance process for high-value goods and Guangzhou Customs in south China’s Guangdong Province is a prime example. It offers specialized guidance to businesses and trains, launching dedicated routes specifically for high-tech exports. These routes focus on complete NEV components, top-tier home appliances and communication equipment, essentially white goods, electronics and NEVs. This prioritization optimizes the import and export structure for these valuable products.
East China’s Jiangsu Province has implemented a “fast customs clearance” system for China-Europe freight trains, which has significantly improved efficiency for both customs transfers and overall transportation. Train journeys are now two to three days shorter, and businesses benefit from a 20 percent reduction in declaration costs.
Export companies are embracing innovative solutions to maximize container space on China-Europe freight trains, too. A prime example is Hunan Hualian China Industry, a daily ceramics exporter, adopting the less than container load (LCL) mode to consolidate smaller shipments from multiple businesses into single containers.
In summary, as a flagship project and a landmark brand of the BRI, the CRE has established a development model based on consensus building, win-win cooperation and continuous growth for all the countries. Actually the CRE has become a modern camel of the 21st century.
Sincere efforts should be made to develop a more efficient transport system for the CR Express. It includes expediting cooperation mechanisms between governments, fostering the convergence of international regulations and strengthening the foundation for international cooperation. These efforts will ensure the smooth operation of the service.
Additionally, the importance of exploring new international routes while maintaining existing ones should be way forward. Hopefully it will broaden the China-Europe Railway Express network. More focus should be given to promote IT applications, digitization and intelligent infrastructure development. It will also prioritize the adoption of green technologies, making the CR Express even more environmentally friendly and beneficial for all involved nations.
AI can be harnessed to optimize logistics operations, improve route planning and enhance predictive maintenance for trains. By embracing AI, the freight train service can achieve greater efficiency, reliability and sustainability to ultimately benefit all nations involved. Undoubtedly, the significance of BRI goes beyond the regional level. The BRI has the potential of creating a more equitable and prosperous world. It has a profound connection with the 2030 Agenda for Sustainable Development. The World Bank estimated that BRI-related investments could lift 7.6 million out of extreme poverty and 32 million out of moderate poverty by 2030.
It seems that enhanced collaboration between China and Europe offers great potential for mutual benefits. Their cooperation across multiple domains, such as trade, geopolitics, and international relations, can result in substantial progress. Central Asia, a natural land bridge between the East and the West, can leverage investment and trade development from this partnership
