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Yingkou mulls European bids

By Wu Yong and Liu Ce (China Daily) Updated: 2016-09-07 07:54

Shanghai-listed Yingkou Port Co Ltd is moving to invest in European transportation companies and is determined to seek a bigger share in the China-European Union logistics market, its chairman said.

Chairman Li Hezhong told China Daily that the company has prepared to invest billions of yuan in bidding for one "key railway terminal" in Europe. But, he declined to reveal specific names of the target companies.

Yingkou Port is one of the country's major hubs linking China and Europe, with six direct international cargo train services opened since the central government launched the Belt and Road Initiative.

"We share a great geographic advantage as the hub that connects both sea shipping and rail," said Li.

"And this new Sino-EU bridge helps us extend trade ties with Russia, the Republic of Korea, Mongolia and European countries on the route of the Belt and Road Initiative," he added.

Sources in the company said that its international transportation business increased 30.7 percent to reach 13,906 twenty-foot equivalent units in the first half of 2016.

"The Sino-EU cargo train service saves up to 30 days (transit) and $10,000 per TEU, which makes it very attractive for customers," according to Meng Yi, a manager from the port's international cargo train business office.

The company started the first cargo train last year, carrying mainly electronic products from the Republic of Korea, which went through Russia and Ukraine before reaching Slovakia in 15 days.

"Yingkou Port's cargo railway service offers another transport option to what was controlled by shipping and air flights in the past. It has elbowed into the logistics market with low cost but rather high speed," said Wang Jinyou, manager from Tianjin Cargo Train Lianjie International Logistics Co Ltd.

Industry insiders said that the traditional Sino-EU cargo service would take around 45 days by landing at Germany's Hamburg Port first and then shipping to other inland cities in Europe.

Quick and effective cooperation with the Russian railway network was responsible for the success of Yingkou Port, they said.

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