China has launched two new multimodal transport routes to Central Asia, enhancing its trade connections with the region. One route targets Kazakhstan's largest city, Almaty, while the other connects to Bishkek, the capital of Kyrgyzstan. The majority of these services are facilitated by rail transport.
In Almaty, the arrival of Chinese-made cars manufactured in Xinjiang marks a significant development. The inaugural trainload, which departed earlier this month, transported 261 cars valued at approximately $3.8mn. This route is expected to gain traction for Chinese car exports as these vehicles grow increasingly popular in Central Asia. By the end of this year, over 15,000 cars are projected to be shipped along this route.
Meanwhile, Bishkek is also benefiting from this logistical expansion. Goods from Hainan, China’s southern island, are shipped via maritime transport to the Central Chinese logistics hub in Wuhan before continuing to Bishkek by rail. This route, managed by Cosco, reduces travel times by seven days and cuts costs by 20%, according to the logistics company.
China is keenly focusing on Central Asia as both a transit hub and an export market. Earlier this year, a rail service was also introduced to Uzbekistan, which borders both Kazakhstan and Kyrgyzstan. Currently, all transport services traverse Kazakhstan, which boasts a well-developed rail network that connects seamlessly with China's rail system.
Looking ahead, China is set to finance a significant portion of the upcoming China-Kyrgyzstan-Uzbekistan rail line, with construction slated to commence this month. This new line aims to provide an alternative route and additional capacity for trade between China and Central Asia.
The topic of Central Asian rail freight is expected to feature at the European Silk Road Summit 2024, scheduled for November 27-28 in Vienna. With registrations already open, the summit will showcase the rapidly recovering China-Europe rail market, underscoring the growing importance of these logistics networks in global trade.
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