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Move aside Siam Kia Road Bridge....here cum Xi-Pudding trans asia europe rail network for global supply chain

k1976

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China-Europe rail shipments, shunned amid Ukraine war, have triggered a train reaction
Russia’s invasion of Ukraine has basically turned an international freight network into the ‘China-Russia Railway Express’

For those looking to avoid Russia, the Middle Corridor’s Caspian Sea is calling – but will it be their salvation or more like a siren’s summon?
 

k1976

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With potential traffic paths dotted in red, a map of the mountainous transcontinental strip of land between the Black Sea and the Caspian Sea sat on Bria Liu’s desk for days, perplexing the rail-freight veteran as a solution eluded her.

At the request of a client, she had hoped to figure out the feasibility of transporting 100 luxury cars from Milan, Italy, to Hong Kong – by train.

The catch? Aside from a preference for rail over the much slower traditional sea route, the client did not want the cars to pass through Russian territory.

But for now, Russia is practically unavoidable when talking about all mature routes of the intercontinental railway network known as the China-Europe Railway Express.
 

k1976

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Riding high before the hold-up

The shine on the China-Europe Railway Express was brightest in 2021, when demand was surging, prices were skyrocketing and route congestion was high as the pandemic wreaked havoc on the global shipping network and the Suez Canal saw an unprecedented blockage.

But now, as shipping volumes to Europe have dwindled, the rail’s advantage in speed has fully manifested in the absence of so much traffic, with express trains reaching Germany in 12 days, said Andrew Jiang, general manager of Shanghai-based Air Sea Transport.
 

k1976

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Enter the Caspian Sea

Suddenly, the Middle Corridor – the route being considered by Bria Liu’s client with 100 fancy cars in Milan – is looking like it could become a viable option for shippers.

President Xi Jinping threw his support behind that Caspian Sea route last month when he unveiled an eight-point action plan for the Belt and Road Initiative.

The first point called for “speeding up the high-quality development of the China-Europe Railway Express” and “participating in the construction of the Trans-Caspian International Transport Corridor”.

But the journey looks to be a choppy one, both figuratively and literally. In the last couple of years, some shipments have made the trip, but there are not yet any regular services across the Caspian.

And despite the attention the route has gained – with its subsequent promotion from relevant countries, led by Kazakhstan and Turkey – it has so far failed to compensate for the loss in freight volume in the traditional northern routes that go through Russia. This is due to unresolved
 

k1976

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Meanwhile, the national railway companies of Kazakhstan, Georgia and Azerbaijan agreed in late October to create a joint venture that will develop multimodal transport services in the Middle Corridor.

In Europe, while policymakers have expressed interest and pledged investment for the Middle Corridor, shipping giants such as Denmark’s Maersk and Germany’s Deutsche Bahn also announced services via the route last year.

But as of now, despite a rise in cargo volume in the past year, any transcontinental freight trains via the Middle Corridor are still considered “project-based”, as opposed to the more mature northern route that has regular weekly services, Liu said.
 

k1976

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Though shorter in distance, the Middle Corridor takes at least 38 days for a train setting off from China to arrive in Europe, compared with 12 days along the northern route through Russia, she said. “I think the road ahead for the Middle Corridor will be long and bumpy,” Liu said.

“The freight costs are still too high. Even with high-level support from governments, there is still a big question mark over how to enhance efficiency on the technical level.”

In Poland, meanwhile, hope is pinned on an end to the Ukraine war, as the Polish government is still investing in an infrastructure project to upgrade terminals and border crossing facilities in Malaszewicze, preparing for the days when big cargo volumes come back.

“It all depends on when the war will end and if the war will end,” said Witkowski from the Polish Forwarding Company.

“When the news comes, the cargo volume to Europe will increase rapidly, because many importers in Europe know the service, and they know that the transit time is faster than the sea. “So, it would be illogical not to use it.”
 

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Markets
Country Garden Shrugs Off Penny Stock Label Amid Sector Support






By John Cheng
November 23, 2023 at 3:34 PM GMT+8
Distressed Chinese developer Country Garden Holdings Co. is poised to shed its penny stock status after Beijing signaled more support for troubled builders.

The stock surged 20% intraday to over HK$1 on Thursday after spending two months below that level. The builder will be included in a draft list of firms eligible for financing support, easing investor concerns over its liquidity woes.
 
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