Express links European trade opportunities

By Li Yu and Peng Chao in Chengdu | China Daily | Updated: 2016-09-28 08:04

The Guangdong-based Zhuhai Yinlong New Energy Co Ltd signed an agreement with the Chengdu city government on Aug 20 to build a new energy industrial park, in the city, with a total investment of 10 billion yuan ($1.5 billion).

The move follows a strategic cooperation framework agreement made by Gree Electric Appliances Inc and the Chengdu city government on May 31.

Gree, which is also based in Guangdong province, announced on Aug 18 to issue new shares worth 13 billion yuan ($1.96 billion) to buy Zhuhai Yinlong New Energy.

"We are very positive about Chengdu's strategic position and its market potential. We will establish long-term strategic cooperation with Chengdu and actively push forward the investment cooperation project," said Dong Mingzhu, chairwoman of Gree.

She said that the company will settle more competitive and prospective projects in Chengdu in the future. The company will be actively involved in the Chengdu-Europe Plus strategy, and will develop export-processing businesses in Chengdu aimed at countries and regions along the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

In line with the Belt and Road Initiative proposed by president Xi Jinping, Chengdu launched the express rail service to Lodz, Poland, in April, 2013. The route is as long as 9,826 kilometers. A one-way trip takes no more than 11 days.

Early in June, China Railway Corporation unified the cargo rail routes between China and Europe under the China Railway Express brand - the CR Express.

Taking advantage of the Chengdu CR Express, Chengdu launched the Chengdu-Europe Plus strategy in 2015, which refers to further rail connections with both domestic and European cities, and thus making Chengdu a central hub for logistics between Europe and pan-Asia.

The Chengdu-Europe route has expanded to domestic cities including Xiamen, Shenzhen, Kunming and Ningbo. It is also expected to cover China's Pearl River Delta, Yangtze River Delta and Bohai Economic Rim, as well as some East and Southeast Asian countries and regions.

In Europe, the Chengdu-Europe route has expanded to Kutno, Poland, and Nuremberg, Germany. The city is also setting up offices and distribution centers in major European cities along the route, to further explore the European market.

According to the latest planning of the Chengdu-Europe Plus, Chengdu will operate three major cargo rail routes to Europe.

Apart from previous route, the second route, which focuses on the southern Europe market, was launched on Sept 6, linking the city to Istanbul, Turkey. The third route, which focuses on Russia market, is expected to open by the end of this year, connecting the city directly to Russia.

A growing number of large-scale manufacturers and logistic companies are cooperating with Chengdu thanks to the Chengdu CR Express and Chengdu-Europe Plus strategy.

Logistics company Deutsche Post DHL signed an agreement with Chengdu Port and Logistics Office on May 25 to strengthen cooperation on the Chengdu CR Express.

The next day, electronic devices manufacturer Lenovo Group Ltd signed a memorandum of understanding with the Chengdu Port and Logistics Office to make use of the Chengdu CR Express.

In March, the Chengdu CR Express launched a special train for electronics company TCL Corp. The train carried 20,000 semi-finished color TVs made at TCL's Huizhou plant in Guangdong province. They were to be finished in Poland and eventually sold throughout Europe.

"We used to send the semi-finished TVs to our factory in Poland by sea, which takes 39 days. The express rail cuts the transport time to around 10 days," said Liu Guifang, project director of TCL's operations center.

Liu said the express rail gives her company a more direct and convenient channel through which to do business with its European customers.

Liang Tiemin, vice-president of TCL Multimedia, said the company is scheduled to add 800,000 TV sets of production capacity to its factory in Chengdu, capital of Sichuan province, by the end of next year.

"We will make Chengdu our major manufacturing base for TVs sold in Europe," he said.

The Chengdu CR Express is expected to run 400 journeys this year and 1,000 journeys next year, according to Chengdu Port and Logistics Office.