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Press Release

Singapore 06/20/2013

DHL raises the bar for China-Russia connectivity

DHL Article
  • Multi-modal expert develops new solution that reduces transit time by more than 60 per cent compared to ocean freight at one-sixth the cost of air freight
  • Extends partnership with YHF Logistics, operator of fastest rail service between China and Europe
DHL Global Forwarding, leading provider of air, sea and road freight services in Europe and Asia, has developed a multi-modal means to reduce transit time between Western China and Russia by up to 40 days compared to ocean freight at one-sixth the cost of air freight. The solution builds upon DHL’s latest multi-modal service launched earlier this year in partnership with YHF Logistics, operator of the rail service that runs along China’s West Corridor – the Chengdu Express Train. Dubbed the fastest rail connection between China and Europe, the service starts in Chengdu, China and runs along China’s West Corridor to DHL’s intermodal hub in Małaszewicze, Poland.

Leveraging and expanding on this service, goods originating from various locations in China bound for Russia can now be trucked to Chengdu, transported from Chengdu to Małaszewicze by train and then trucked to Moscow – all within 20 days. The door-to-door service departs once-a-week every Saturday from Chengdu and can be utilized by businesses in any sector.

Kelvin Leung, CEO, Asia Pacific, DHL Global Forwarding, said: “Looking at a map alone, the solution seems counter-intuitive at first as it requires us to back track from Poland into Russia. However, our innovative multi-modal team has found that mixing the two different modes of rail and truck and taking this route in fact cuts transit time and transport costs significantly by pre-empting and overcoming potential delays that can be encountered when entering Moscow by rail. Such innovation is a very important part of the way we do business, and is especially meaningful on this trade lane given China is one of Russia’s top trading partners.¹”

Bilateral trade between China and Russia rose to a record $88.16 billion in 2012, up 11.2 per cent year-on-year. It is widely believed that trade between the two countries will likely reach the $100 billion and $200 billion goals set for 2015 and 2020 respectively².

Sofiane Rachedi, President, YHF Logistics, said: “We are happy to be DHL’s chosen partner in an ever-changing, challenging and competitive market. As an established leader in freight services in the region, DHL is a reliable partner with business ideals and ideas that we are happy to support and be a part of. We look forward to more innovative ideas on how we can further enable trade between not just the two countries, but the two continents.”

Connecting seamlessly from DHL Global Forwarding’s network in Asia to DHL Freight’s network in Europe, DHL’s rail/road multi-modal service ensures complete supply chain visibility and enables a faster-to-market approach between both continents. To date DHL has conducted several trials along this route to Moscow for various customers successfully while demand for its latest rail/road multi-modal service continues to climb steadily.

¹ China Daily, 25 May 2013.
² China Daily, 16 April 2013.