China-Europe freight-train service hits milestone, boosts EU trade, says German logistics leader

A China-Europe freight train loaded with machinery, automobiles and auto parts waits for departure at a railway station in Chongqing, southwest China, March 7, 2024. (Xinhua/Huang Wei)

Krueger proposed optimizing the European rail network and logistics hubs to improve efficiency.

BERLIN, Dec. 1 (Xinhua) -- The China-Europe freight train service has become a cornerstone of economic ties between China and the European Union (EU), providing essential support for industries requiring time-sensitive and reliable logistics, Olaf Krueger, chairman of the International Rail Freight Business Association, told Xinhua in an interview.

The imminent arrival of the 100,000th China-Europe Freight Train in Duisburg, Germany, marks a historic milestone for this rail link, which has emerged as a vital economic bridge. Krueger emphasized its pivotal role in enhancing trade and supply chain efficiency.

"Rail transport has made a significant contribution to the strong economic growth between China and the countries of the European Union. This transport option on the Silk Road has developed expansively and has been used in particular for time-critical transport," he noted.

An aerial drone photo taken on March 7, 2024 shows containers waiting to go through customs clearance at a railway station in Chongqing, southwest China. (Xinhua/Huang Wei)

Krueger praised railway workers for reducing transit times and improving transfer efficiency at gauge junctions. Recalling the challenges they faced, he highlighted how Chinese workers managed to transfer cargo at the China-Kazakhstan border during harsh winters with two meters of snow. "These photos have gone around the world, and the railwaymen involved must still be thanked today for this great effort," he said.

Under the Belt and Road Initiative (BRI), the railway has become a dependable logistics solution for goods requiring prompt delivery, seeing significant growth as an option for time-sensitive shipments.

"European companies have increasingly relied on the railway to optimize supply chains. Its stability and reliability ensure 'just-in-time' deliveries, which are essential for many industries," Krueger said. He highlighted how importers of Chinese goods benefit from shorter transit times and faster market responses.

European companies with production facilities in China have also come to depend on the rail network for material transport between factories. "Rail's reliability prevents production delays and maintains supply chain continuity," he explained.

The retail sector is another key beneficiary, with many discount chains using the China-Europe Railway Express to ship non-food promotional items. "Retailers are increasingly demanding 'just-in-time' services, and the Railway Express meets these needs effectively," Krueger said.

As demand for rail services continues to grow, particularly from central and western China, Krueger stressed the importance of expanding railway infrastructure. "This is particularly necessary in difficult political and economic situations, as alternative transport solutions are required in the event of delivery restrictions in both maritime transport and air freight," he said.

This aerial photo taken on July 10, 2023 shows OOCL PIRAEUS, one of the largest container vessels in the world, arriving at Piraeus port in Piraeus, Greece. (Xinhua)

Krueger proposed optimizing the European rail network and logistics hubs to improve efficiency. Italy, he noted, is a key consumer market with increasing demand for both imports and exports. "More logistics terminals in Italy would boost container utilization rates on both legs of the journey," he suggested.

He also advocated for improved rail links to ports such as Piraeus in Greece. "Expanding rail connections in Southern and Eastern Europe will enhance efficiency and foster economic integration," he added.

"Efficient transport connections are a prerequisite for the continuation and deepening of diplomatic relations between China and the EU," Krueger said.