KOTRA to Host '2022 Korea-China Logistics Cooperation Forum' on 16th Marking 30th Anniversary of Korea-China Diplomatic Relations
Presenting New Maritime and Rail Multimodal Transport Solutions for Domestic Export Companies
[Asia Economy Reporter Kim Pyeonghwa] The Korea Trade-Investment Promotion Agency (KOTRA) will hold the '2022 Korea-China Logistics Cooperation Forum' on the 16th in Xi'an, China, to support stable export logistics for domestic companies and explore cooperation plans between Korean and Chinese logistics companies. This event is organized to examine the entry of companies from both countries into third-country markets on the occasion of the 30th anniversary of Korea-China diplomatic relations.
The forum will include participation from the Lugang Group, which accounts for more than half of the transportation volume of the China-Europe Railway Express (TCR). They will discuss ways to efficiently connect Korea-China-Europe railway logistics. Incheon Port Authority and Nippon Express will also participate to share utilization methods and demonstration cases of the TCR. Nippon Express is a Japanese multimodal logistics transportation company.
The forum is held in Xi'an, China, which is the starting point of the Changanhu route, the busiest route in terms of cargo volume on the TCR. Before the forum begins, Zai Ruofeng, Deputy General Manager of Lugang Group, which operates the Changanhu, said, "For this forum, we conducted a phased demonstration study to load cargo from Korea directly onto freight trains at Chinese coastal ports and send them to Europe and Central Asia,” adding, “We will immediately reflect any necessary improvements while expanding cooperation with major Korean port authorities and logistics companies in the future."
The Lugang Group is launching a 'Korea-origin cross-border dedicated train' service so that Korean companies can also use the Changanhu, which had been used only by domestic companies that entered China, on the occasion of the 30th anniversary of Korea-China diplomatic relations. Deputy General Manager Zai Ruofeng said, "It will take about 25 to 30 days for cargo arriving at Incheon Port to be transshipped in Qingdao and reach Hamburg, Germany," adding, “We will strengthen connections with Incheon and Qingdao ports, which are highly utilized by Korean companies, to improve accessibility and convenience of use and strive to shorten customs clearance times.”
This sea-rail combined transportation method has the advantage of reducing freight and transportation time by about 30% in the era of high oil prices. Although it has not yet become a common international logistics route for domestic companies, recently, due to the Ukraine crisis significantly affecting the Trans-Siberian Railway (TSR), the TCR has emerged as an alternative.
A Nippon Express official with extensive experience in operating the Changanhu said, "Using freight trains can reduce transportation time by up to 25 days compared to maritime transport," adding, "The frequent departures of 3 to 4 times a day, smoother customs procedures compared to maritime transport, freight rates about one-tenth of air transport, and the ability to transport directly to several inland European countries are the representative competitive advantages of operating the Changanhu." He added, "The significant reduction in carbon emissions and the improvement of supply chain cycles based on shorter transportation times make the Changanhu an attractive option."
Kim Sooncheol, head of the Shanghai branch of Incheon Port Authority, presented items suitable for Changanhu use such as automobiles and related parts, telecommunications, electrical, and electronic products, stating, “Incheon Port is the optimal choice for utilizing sea-rail combined transportation,” and evaluated, “If key requirements are met, the Changanhu can be an important logistics alternative for our companies amid maritime delays and soaring freight rates.”
Hong Changpyo, head of KOTRA’s China Regional Headquarters, said, “Securing logistics stability is the top priority for expanding exports,” and added, “We will actively promote international logistics cooperation to resolve export and global supply chain difficulties faced by our companies.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
