China signs rail deal with Russia

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Gabrielle Easter

BY GABRIELLE EASTER

@gab_produceplus

China signs rail deal with Russia

China and Russia have signed a strategic agreement to develop container train services

China signs rail deal with Russia

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China’s Zhengzhou International Land Port Development & Construction Co has signed an agreement with JSC Russian Railways Logistics to begin freight services.

The rail service will build on the existing trans-Siberian network between Zhengzhou and Europe, with a possibility of developing a Moscow-based logistics hub, according to a statement released by Russian Railways Logistics.

Of particular focus is the transport of temperature-sensitive goods between China and Europe, particularly during winter.

The agreement comes as China is focused on building a ‘Silk Road Economic Belt’, boosting trade across Central Asia and Europe. China has spent an estimated US$40b on rail and logistics to reduce reliance on air and sea transport, according to JOC.com, most recently launching a train service between Spain and Yiwu in China.

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