Chongqing becomes a rising logistics hub in western China

A view of the Guoyuan Port in Southwest China's Chongqing Municipality on May 19, 2024 Photo: Chen Tao/GT

At the Guoyuan Port located in Liangjiang New Area, Southwest China's Chongqing Municipality, colorful containers are stacked in an orderly way while intelligent container gantry cranes operate in an efficient and streamlined process. Not too far from the cargo area, freight trains could also be spotted at the port, ready to transport various commodities to faraway locations.

As a landmark logistics center and the largest port on the upper reaches of the Yangtze River, Guoyuan Port has achieved seamless multi-modal transport integrating railway, road, and waterway. The bustling scenes witnessed by the Global Times at the Guoyuan Port provide a vivid snapshot demonstrating the city's efforts in constructing an inland international logistics hub, as the city is at the connection point of the Belt and Road Initiative and the Yangtze River Economic Belt.

Relying on its unique location in western China, the operation of the China-Europe freight trains and the New International Land-Sea Trade Corridor as well as firm policy support, Chongqing has played a pivotal role in fueling China's market and transforming global trade dynamics.

Key transportation node

In 2011, a train loaded with electronic products embarked on a journey from Tuanjiecun Station in Chongqing to Duisburg in Germany, marking the inauguration of the China-Europe freight train service.

"In 2016, our company operated only a few trains per week, but now we have five to 10 trains running every day. The growth has multiplied several times," a manager of the operations department at Yuxinou (Chongqing) Logistics Co, who just give her surname as Hu, told the Global Times.

The signature Chongqing-Duisburg route covers a length of more than 11,000 kilometers, while a wide range of commodities from electronic products, vehicles, and auto components to textiles and food products can reach multiple destinations in Europe in as fast as 13 days, according to a separate statement from Yuxinou.

The steady growth in volume can also be seen at the Xinglongchang marshalling station in the Shapingba district, serving multiple international routes. The marshalling station is dedicated to handling the classification and grouping of freight trains upon arrival and departure.

Huang Chao, assistant engineer of the dispatch workshop at the marshalling station, told the Global Times that he has witnessed a growing number of returning freight trains and commodities. Due to increase in returning trains, Huang said that the number of trains for marshaling one group had increased from 50 to a current 55.

In addition, as the operational hub of the New International Land-Sea Trade Corridor, the milestone project has become an indispensable part of constructing the megacity which is viewed as a crucial transportation hub in western China.

Guoyuan Port has played a significant role in promoting the development of the corridor as one of the most accessible channels to reach ASEAN markets. Besides continuously growing freight routes, the port also aims to expand the trade sources from the ASEAN such as fresh products and frozen aquatic products, the Global Times learned from the relevant department of the Liangjiang New Area.

As of June 21, 2024, the total number of shipments transported through the New International Land-Sea Trade Corridor exceeded 400, 000 standard containers. The corridor currently extends to 18 Chinese provinces and cities while transporting commodities to 518 ports in 124 countries and regions worldwide, becoming an important link between western China and the ASEAN member states, China Media Group reported.

Safeguarding logistics, industrial, and supply chains

The operation of the China-Europe freight trains in Chongqing is also a vivid example showcasing the significant role that the freight trains have played in ensuring stable and smooth logistics, while also contributing to strengthened local industrial and supply chains.

Amid a range of geopolitical tensions such as the ongoing Red Sea crisis, some enterprises have opted to use the China-Europe freight train services to replace sea transportation as a relatively secure and reliable way to avoid potential interruptions and delays, according to the Yuxinou statement.

The freight trains offer a quicker, more stable service, regardless of different weather and sea conditions. The service bypasses potential maritime transport perils and ensures safe and timely deliveries.

"Since early this year, the China-Europe Railway Express has run 10,000 trips and shipped over 1 million TEUs of goods, up by 11 percent year on year. The number of trips through the west, middle, and east major routes rose by 13 percent, 20 percent, and 5 percent respectively year on year. The number of trips on the south route saw a 15-fold increase from one year ago. The express service has contributed significantly to the stability of the international industrial and supply chains and the China-Europe trade and business ties," Chinese Foreign Ministry spokesperson Lin Jian told a routine press conference on July 16.

"With the promotion of the China-Europe freight trains, there has been a noticeable increase in acceptance and recognition among customers. The efficiency and timeliness of delivering goods to foreign countries via these trains have also been exceptional," Hu said.

The China-Europe freight trains operating from Chongqing have transported some 200 billion yuan worth of IT products, and helped promote the establishment of global players including HP, Acer, and Asus with their plants and a number of supporting enterprises.

Train services have also promoted the export of vehicles and auto parts from Chinese brands, while promoting projects from leading auto giants such as Porsche and Audi to settle in Chongqing, with the import and export value of vehicles hitting nearly 70 billion yuan, according to the statement by Yuxinou.

Bolstering local economy

Chongqing's thriving logistics sector has also propelled the development of local economy. Depending on the diverse commodity transportation methods, the trade exchanges have been further elevated, as the logistics advantages allow Chongqing to progress in local trade based on its own strengths.

As a major manufacturing hub, Chongqing has established a solid foundation in various sectors such as automobile, motorcycle, and electronic information. The city is also an important supplier of energy sources such as natural gas and a production base for raw materials including steel and aluminum, a staff member in charge of the Sino-Singapore (Chongqing) DC Multimodal Logistics Co told the Global Times.

Sino-Singapore (Chongqing) DC Multimodal Logistics Co is one of the key entities established under the China-Singapore (Chongqing) Demonstrative Initiative on Strategic Connectivity, and the company was officially launched in 2017.

Chongqing now ranks first in terms of volume for open ports in western China, with three newly approved ports, bringing the total figure to 7, local media outlet cqnews.net reported on Friday.

For instance, the Chongqing Railway Port has four major functions targeting trade of vehicles, medicine, mail, and meat, Liu Li, a staff member of the port, told the Global Times.

Liu noted that with the medical and pharmaceutical trade going through the port, the Chongqing Railway Port is the fourth railway port that can import pharmaceuticals and biological products sold in China for the first time after Beijing, Shanghai, and Guangzhou in South China's Guangdong Province.

In 2023, the medicine imports going customs clearance through this port reached 1.5 billion yuan ($206.25 million), accounting for 70 percent of the city's total imports, according to Liu.