Nippon Express is investing in BRI logistics services

10/10/2018

 

The main Japanese logistics company is ready to launch China-Europe Train service, following Beijing’s Belt and Road logistics demand

 

The growth and strengthening of Belt and Road Initiative (BRI) are such to be of interest to international companies. This is what happened with the Japanese logistics company Nippon Express, which plans to use regular freight trains between China and Europe.

Indeed, given that the Beijing Belt and Road infrastructure Initiative increases the speed of goods transfer between the two markets, Nippon Express, Japanese global logistics services company with its head office based in Tokyo, decided to use the Chinese logistics network and therefore it plans to launch the service after the new lunar year in February, starting with one or two trips a month.

 

Nippon Express will charter entire trains operated by Chinese rail companies

 

The main difference compared to the past is that Nippon Express, instead of buying space on trains hired by local logistics service providers, will rent entire trains operated by Chinese railway companies.

However, the Japanese company’s operation is not limited to the companies that work with Nippon Express. The company, in fact, is already running trans-Eurasian freight shipments on a trial basis, including for Japan’s Ministry of Economy, Trade and Industry.

 

A shipment from Xi’an to Poland would take just 12 to 13 days on a train, compared with roughly 40 days by sea

 

Nippon Express is considering Xi’an, Chongqing and Wuhan as potential terminals in China, as well as Duisburg in Germany. All are located far from container ports, so the new freight train service could significantly cut shipping times.

The Nippon Express trains will include items such as auto parts, liquid crystal display panels and machinery on trains bound for Europe. Moreover, in the next month, Japanese Prime Minister Shinzo Abe plans to visit China. Therefore greater economic cooperation is expected between the two governments.

 

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