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Container rail network poised for expansion

9 December 2009
China’s container rail network is poised for major expansion, according to Tsang Yam-pui, an official from NWS Holdings, the infrastructure arm of New World Development. Currently, just 3m containers are carried by rail in China each year, reported South China Morning Post, but that volume is expected to triple by 2012.

NWS is the second largest shareholder in the joint venture China United International Rail Containers (CUIRC), which was established in 2007 to operate China’s container rail network. The largest shareholder is the Ministry of Railways, with smaller stakes held by shipping lines CMA CGM and Zim, and German state rail company Deutsche Bahn.

Only one station is currently operational in the mainland’s container rail network. That is in Kunming, capital of Yunnan province, but next year additional container train stations will open in Chongqing, Chengdu, Xian, Zhengzhou, Wuhan, Qingdao and Dalian. By 2012, a further 10 stations could be operational: in Shenzhen, Guangzhou, Ningbo, Shanghai, Tianjin, Beijing, Shenyang, Harbin, Lanzhou and Urumqi.

The network will link inland cities with China’s sea ports, and could also connect with an overland rail link to Europe. Such a service might carry up to 400,000 teu a year, according to research by consultants Macquarie for CUIRC. Transporting a container from China to Europe by rail might take 21 days, compared with about 32 days by sea, the study indicated.
     
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