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DHL has signed a memorandum of understanding (MOU) with Rail Cargo Group for the joint development of a new rail route between Chengdu, China, and Vienna, Austria.

Crossing 9,800 kilometres and six countries (China, Kazakhstan, Russia, Ukraine, Slovakia and Austria), the route is part of the new Silk Road Economic Belt, the product of China’s “One Belt, One Road” trade policy that DHL helped to kickstart. The journey takes 15 days by rail.

Under the agreement, DHL Global Forwarding will work with Rail Cargo Group to boost rail freight capacity and develop alternative China-Europe routes to the ones that already exist. They will draw on RCG’s expertise in regional rail infrastructure and DHL’s vast multimodal network and forwarding capabilities.

DHL and Rail Cargo Group extend Belt and Road network
Credit: Deutsche Post DHL Group

“DHL Global Forwarding already offers an extensive portfolio of intermodal connections between Asia and Europe,” said Felix Heger, its Head of China Rail and Ocean Freight Europe. “However, in order to further increase the efficiency in our network and thus ultimately for our customers, we are continuously working on expanding the railway connections.”

“This direct connection offers fast, efficient and sustainable multimodal capacity supporting high-growth sectors that will bring immense benefits to both countries and continents,” said Thomas Kargl, a member of Rail Cargo Group’s Board of Directors. “The Chinese market holds enormous growth potential for Europe, and we intend for this route to support trade volumes that grew nearly 16% last year – and show no sign of slowing or decreasing in the future.”

The two companies marked their new partnership with an inaugural train journey along the new route.

(Source: Deutsche Post DHL Group)

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