New channel boosts trade among RCEP members

More than 300 brand-new automobiles were shipped from Yokohama in Japan to the China (Liaoning) Pilot Free Trade Zone recently and then forwarded to Alma-Ata of Kazakhstan by train.

It marks the normal operations of China's first transportation channel that combines ocean and overland segments linking East Asia with Central Asia, said Sun Shiwei, an official with the Dalian Area of the Liaoning FTZ.

"A car can be delivered to a customer within 30 days of leaving the factory, thus greatly reducing costs," said Sun.

In the past, it took more than 80 days for Japanese cars to be transported to Central Asian countries via the Mediterranean Sea, the Black Sea and Russia.

With this new channel, Japanese cars can be shipped to Dalian Port by sea. After being reloaded onto a train at the port, they will go by rail to Horgos Port in the Xinjiang Uygur autonomous region for another transfer before moving to Central Asia.

Sun said that the Dalian Area of the Liaoning FTZ initiated the "Japan-Dalian-Central Asia "transport mode for motor vehicles after the signing of the Regional Comprehensive Economic Partnership agreement. The RCEP has greatly increased bilateral economic and trade mutual trust and the trade between China, Japan, the Republic of Korea and other countries.

The administrative committee of the FTZ created a team to coordinate various players－Customs, port companies, railway companies and other parties－to make the logistics work for foreign customers, said Sun.

When the goods arrive at the port, they can be unloaded directly, and be reloaded to the train. Thus, the Customs clearance can be completed without any delay.

Ning Jiazhen, general manager of Dalian Automobile Terminal Co Ltd, said the new channel is expected to transport more than 4,000 cars from Japan to Central Asia this year, and the number is expected to exceed 10,000 within three years, according to the current agreements.

The first batch of Japanese cars moved through the new channel via Dalian on Jan 29.

"The stable operation of the channel is bound to attract more overseas customers and drive the domestic supply of goods as well," said Ning.

"It will greatly increase the throughput of the automobile terminal in Dalian FTZ," he said.