KTZ Express Hong Kong planning launch of new rail freight services from Shenzhen, Guangzhou, Wuhan and Xi’an to Europe
October 15th, Shenzhen, China - KTZ Express (KTZE) Hong Kong, the leading provider of international rail freight services connecting Central Asia to global markets, is planning to launch new block train services from four cities in China to Europe via Kazakhstan.
Scheduled for launch during the next 12 months, KTZE Hong Kong is currently in discussion with municipal government officials and freight forwarders in Shenzhen, Guangzhou, Wuhan and Xi’an.
The New Silk Way initiative launched by the Governments of China and Kazakhstan, is now gaining momentum with shippers and freight forwarders attracted by the 16 day transit time to major cities in Europe. There is also growing demand from Europe for dedicated block train services to Asia for products as diverse as fruit to automotive parts.
KTZ Express is currently taking delivery of 200 new 45 foot refrigerated (reefer) rail freight containers to meet demand from shippers for products such as pharmaceuticals, farm produce and computer hardware, which require temperature control.
‘We have had a very positive response from freight forwarders across China who are looking for a fast, efficient and cost effective service direct to their European customers,” said Henrik Christensen, President, Global Logistics, KTZ Express Hong Kong speaking at JOC TPM Asia conference in Shenzhen.
“Shippers of high value products such as electronics, automotive parts, computers, fashion and lifestyle products and fresh produce are actively looking at using rail freight from China to Europe, as a result of longer ocean transit times. We have invested in a large state-of-the-art reefer fleet to ensure our customers’ products are transported at the optimum temperatures.” he added.
Slow steaming by container shipping lines means that the transit time from China to European ports can be more than 45 days. The cost of air freight is also still very high when compared to rail freight.
A key platform in the development of the rail freight service is the new inland container port under construction at Khorgos on the China-Kazakhstan border, this is aimed to provide a regional distribution centre for the growing trade between China South East Asia and Kazakhstan, Central Asia, Russia and the Caucasus. Khorgos East Gate is a Special Economic Zone with Customs Bonded area with Visa free access.
About KTZ Express Hong Kong:
KTZ Express Hong Kong Limited is a subsidiary of KTZ Express, a wholly-owned company of Kazakhstan Railways. Its aim is to develop and facilitate increased cross border international trade, leveraging the company’s transportation network combining rail, road, air and sea, connecting Kazakhstan to markets across Europe, Russia and Asia.
KTZ Express is a key stakeholder and investor in the development of the New Silk Way, building multimodal connections along ancient trading routes linking Asia to Europe. KTZ Express is developing seaport and airport infrastructure as well as a network of terminals and transport and logistics centres in Central Asia and in China.