DHL, Rail Cargo extend Belt and Road network with Chengdu–Vienna direct route

FT ONLINE

DHL Global Forwarding, a leading freight forwarding service, and Rail Cargo Group (RCG), the freight division of the Austrian Federal Railways on Tuesday signed a memorandum of understanding (MoU) to develop an intermodal rail network between Austria and China. 

Both the freight forwarders aim to tap into the rising trade along China's Silk Road Economic Belt between Europe and Asia with the signing of this MoU, said a press release.

The partnership kicked off with the inaugural of a 600-metre container's journey from Chengdu's Qingbaijiang Railway Station to the Vienna South Freight Centre. 

The latest route in DHL's Asia-Europe-Asia multimodal network will connect Chengdu with Vienna in just 15 days, spanning 9,800 kilometres and crossing six countries -- China, Kazakhstan, Russia, Ukraine, Slovakia and Austria. 

"Trade growth between China and Austria shows no signs of slowing down, and we are delighted to partner with RCG to further streamline freight connections between these two countries," said Steve Huang, CEO, DHL Global Forwarding Greater China, adding that the key partnership comes in the wake of Austria's economy minister’s signing of 30 business deals with Chinese companies last month.  

Under the MoU, DHL Global Forwarding and RCG will work together to boost rail freight capacity and jointly develop alternative routes to existing China-Europe connections. 

DHL Global Forwarding will also provide door-to-door services including pre- and on-carriage trucking between Qingbaijiang and other parts of China; and between Vienna South Freight Centre, other European rail stations in its network and customers' final destinations for delivery. 

"This direct connection offers fast, efficient and sustainable multimodal capacity supporting high-growth sectors that will bring immense benefits to both countries and continents," said Thomas Kargl, member of the board of directors of Rail Cargo Group. 

The Chengdu-Vienna direct connection will bring a new degree of volume and flexibility to multimodal network that customers in China and Europe enjoy, he added.