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Freight route bolsters China-Caucasus links

Updated: Jul 12, 2024 By PENG CHAO China Daily Print
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Two shipments from Shandong province have reached Azerbaijan's capital, Baku, via a new rail and sea route across the Caspian Sea that provides a swifter alternative for cargo bound for Europe.

The goods, including truck parts, tires and air conditioners, traveled through the Trans-Caspian International Transport Route, which cuts through Kazakhstan, offering an overland connection to Turkiye or access to European countries via the Black Sea.

"The cargo reached its destination in 18 days, saving a third of the time compared to traditional sea routes," said Zang Yuanqi, an official with the China-Shanghai Cooperation Organization Local Economic and Trade Cooperation Demonstration Area in Qingdao, Shandong.

The multimodal journey involved trains transporting the goods from Jinan and Qingdao to Kazakhstan's border with China. The cargo was transported across Kazakhstan by train and then shipped across the Caspian Sea from Aktau port to Alat port in Azerbaijan before reaching Baku by rail. Some goods will be shipped onward to countries including Turkiye, Georgia, Romania and Italy.

"This successful trial opens a new chapter for Shandong's participation in the Trans-Caspian International Transport Route," Zang said, adding that the demonstration area plans to increase freight train traffic along the corridor.

China's commitment to the route aligns with its efforts to bolster the China-Europe Railway Express and participate in high-quality Belt and Road Initiative projects.

The demonstration area, strategically located near Qingdao's international airport and seaport, boasts a well-developed transportation network. It currently operates 32 rail routes for China-Europe freight trains, connecting 54 cities across 23 BRI and Shanghai Cooperation Organization partner countries.

"We aim to make the demonstration area a gateway for SCO members to access Asia-Pacific markets, linking them with regions to the east, west, north and south," said Chen Wansheng, a Qingdao city official.

That ambition is further supported by the area's comprehensive service platform, offering trade, customs clearance, logistics and financial solutions. Businesses like Qingdao Huazun Machine have benefited from the streamlined processes, experiencing faster customs clearance and a significant increase in orders from SCO countries.

With over 2,000 trade entities and 130 BRI and SCO industrial projects established in the demonstration area, the total value of its trade with SCO members has grown by an average of 77 percent a year over the past six years.

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