Multimode Transport from China to Russia

2024-11-29

Multimode Transport from China to Russia

What is Multimodal Transport?

Multimodal transport refers to the use of two or more modes of transportation for the seamless delivery of goods. This typically includes a combination of transport methods such as road, rail, air, and sea. The key feature of multimodal transport is that it operates under a single contract and is managed by one logistics company or carrier, ensuring smoother coordination and efficiency.

For example, goods might be transported by truck to a port, shipped by sea to another country, and then delivered by rail to their final destination. This strategy reduces delays, optimizes costs, and simplifies the overall logistics process.

Multimodal transport, also referred to as multimodal transit or multimode logistics, plays a key role in optimizing the efficiency of global and domestic supply chains. It involves the seamless integration of multiple modes of transportation, such as rail, road, sea, and air, to ensure goods are transported efficiently from origin to destination. Since the start of China’s 13th Five-Year Plan in 2016, significant progress has been made in the development of multimodal logistics, driving faster growth and higher efficiency. The table below highlights key advancements in China’s multimodal transport from 2016 to 2023:

Category	2016	2023	Growth
Iron-Water Intermodal Volume	2.74 million TEUs	11.7 million TEUs	Increased by 4.3 times
Coastal Port Iron-Water Ratio	2.9%	8%	Significant improvement
Railway Container Volume	7.51 million TEUs	33.23 million TEUs	Increased by 4.4 times
Container Share of Railway Loads	8.4%	25.5%	Increased by 17.1 percentage points
China-Europe Freight Train Trips	1,702 trains	17,523 trains	Increased by over 10 times
Railway Container Stock	330,000 TEUs	1.07 million TEUs	Increased by 3.3 times
Port Rail Transport Share	40%	82%	Doubled
Domestic Container Market Share	1.8%	21.9%	Increased by 20.1 percentage points
Global Container Production Share	-	96%	China dominates global container production
Domestic Containerization Level	Low	High	Significant growth in domestic demand
Domestic Container Orders	Low	Fast growth	Driven by inland intermodal development

Understanding Multimodal Transport and Logistics

In today’s interconnected world, efficient transportation is crucial for global trade and supply chains. Terms like multimodal transport, multimodal transit, and multimode logistics are often used to describe advanced methods of moving goods across different regions. Let's dive into these concepts and understand their significance.

Here is a summary of the market demand for key cargo types across various logistics corridors in a table format:

Logistics Corridor	Key Cargo Types	Forecast
China-Mongolia-Russia Logistics	Coal, Ore, Grains, Timber, Meat, Seafood, Fruits and Vegetables, Daily Goods, Consumer Vehicles, Mechanical and Electrical Products	Significant increase in coal, iron ore, and agricultural products trade by 2030.
China-Central Asia-Europe Corridor	Apparel and Textiles, Daily Necessities, Home Building Materials, Electronics, Consumer Vehicles, Machinery, Food, Grains, Minerals, Fertilizers	Increase in demand for machinery, vehicles, and textiles by 2030.
China-Southeast Asia Corridor	Agricultural Products, Fruits, Seafood, Electronics, Mechanical and Electrical Products, Daily Goods, Minerals, Chemical Products	Cross-border transport volume expected to reach 5.93 million TEUs by 2030.
China-Mongolia Cross-Border Railway	Coal, Iron Ore, Agricultural Products	Container vol

This table highlights the key cargo categories and forecasts for each logistics corridor.

The trade relationship between China and Russia continues to show steady growth, driven by increased imports, exports, and successful bilateral agreements. Key trade milestones for 2024, as well as detailed statistics from 2023 and early 2024, highlight the progress toward achieving their ambitious trade targets. Below is a detailed breakdown of the trade figures and achievements:

Category	Details
2024 Jan-Oct Trade Growth	2.8% year-on-year increase, reaching $202.11 billion.
China’s Imports from Russia	$94.14 billion (up 4.7% compared to the same period in 2023).
Russia’s Exports to China	$108.07 billion (up 1.1% compared to the same period in 2023).
October 2024 Monthly Trade	$21.795 billion total.
October 2024 Breakdown	- Russian exports to China: $10.79 billion. <br> - Chinese exports to Russia: $11.004 billion.
2023 Annual Trade Growth	26.3%, reaching a record $240.11 billion.
Trade Target (2024)	Goal to double trade from $100 billion in 2018 to $200 billion by 2024, already achieved by Nov 2023.

Multimodal Transport

Multimodal transport refers to the use of more than one mode of transportation (such as rail, road, sea, and air) to move goods from their origin to their destination. This integrated system enables seamless logistics by combining the strengths of various transportation methods, optimizing efficiency, cost, and delivery times. In multimodal transit, cargo is transferred between different transport modes under a single contract, offering flexibility and scalability in logistics. Multimodal logistics is becoming increasingly important in global trade, especially as supply chains become more complex and the demand for faster, more sustainable transport solutions grows.

The table below outlines key regions, cargo types, and forecasted container volumes by 2030, highlighting specific initiatives related to multimodal transportation systems for bulk and containerized cargo in China.

Key Regions	Key Cargo Types	Forecasted Container Volume by 2030
Xinjiang, Inner Mongolia, Shanxi, Hebei, Liaoning, Jilin, Heilongjiang, Guizhou, Yunnan, Northwest, Northeast, North China, Southwest, Yangtze River, West River regions	Grains, Coal, Ore, Steel, Cement, Mining Materials	Coal: 23.52 million TEUs, Grains: 4.04 million TEUs, Iron Ore: 4.88 million TEUs
Specific Initiatives:	Coal "Bulk-to-Container", Port-based Iron Ore "Bulk-to-Container", "North Grain South Transport" & Imported Grain "Bulk-to-Container", Yangtze & West River "Bulk-to-Container"

Multimodal Transport (Sea-Rail Combined Transport) is one of VIPU's key advantages. In alignment with the Belt and Road Initiative, we focus on developing markets at the "Silk Road" starting point. Our services cover Central Asia, China-Mongolia, China-Russia, and China-Europe railway routes.

We are dedicated to offering customers "one-stop" comprehensive logistics services for exports from China or transit through China to Central Asia, Russia, Mongolia, Europe, and other regions. Services include railway transportation, trailer services, warehousing, customs clearance, inspection and quarantine, freight insurance, and more.

(I) Transit Cargo Transportation:

TCR Route:
Ships to Qingdao or Lianyungang → Transferred to rail → Alashankou/Horgos, Erlianhot, or Manzhouli port → Central Asia, Mongolia, Russia (two-way transport).
TSR Route:
Ships to Vladivostok → Transferred to rail → Russia, Central Asia, Europe (two-way transport).
TBR Route:
Ships to Riga (Baltic Sea) → Transferred to rail or truck → Russia, Central Asia (two-way transport).
TIR Route:
Ships to Bandar Abbas → Transferred to truck or rail → Turkmenistan, Armenia, and other regions (two-way transport).

(II) Railway Export Services:

Routes:
- Departure → Alashankou/Dostyk (Horgos/Altynkol) → Central Asia, Russia.
- Departure → Manzhouli/Zabaykalsk → Russia.
- Departure → Erlianhot/Zamyn-Uud → Ulaanbaatar, Mongolia.

Special Recommended Services:

Multimodal LCL Services:
- From global locations → Lianyungang → Almaty (Kazakhstan), Tashkent (Uzbekistan).
- From global locations → Xingang → Ulaanbaatar (Mongolia).
- Cross-border and export cargo consolidation at Lianyungang and Xingang.
Sea Freight LCL to Russia, Lithuania, Belarus:
- To Moscow, St. Petersburg, Novosibirsk (Russia).
- To Minsk (Belarus), Vilnius (Lithuania).
China-Europe Railway Express:
- Regular train service to European cities (e.g., Germany, Poland) from Zhengzhou, Suzhou, Chongqing, Wuhan.
Container Services:
- Rent, buy, or sell containers at major global ports and cities for transport to Central Asia, Mongolia, and Russia.

From China to Russia Route

Route Name	Route Details
TCR Route	Qingdao/Lianyungang → Alashankou/Horgos/Erlianhot/Manzhouli → Central Asia, Mongolia, Russia
TSR Route	Vladivostok → Russia, Central Asia, Europe
TBR Route	Riga (Baltic Sea) → Russia, Central Asia
TIR Route	Bandar Abbas → Turkmenistan, Armenia, and surrounding regions
China-Europe Railway	Zhengzhou/Suzhou/Chongqing/Wuhan → Germany, Poland, and other European cities
Special LCL Routes	Global → Lianyungang/Xingang → Almaty, Tashkent, Ulaanbaatar
Sea Freight LCL	Global → Moscow, St. Petersburg, Minsk, Vilnius, and more

Multimodal Transit

Multimodal transit focuses on the journey of goods through multiple transportation methods while ensuring continuity and efficiency. Transit through multiple modes is commonly used for international trade, where goods must cross borders, oceans, and vast regions.

For instance, a shipment might start in China by rail, move by sea to Europe, and then be delivered by road to a specific city. Multimodal transit ensures that goods are transported effectively, even across long distances and challenging terrains.

What Does "Transported" Mean?

The term transported simply refers to the act of moving goods, people, or materials from one place to another. In logistics, transportation is the backbone of supply chains, facilitating the movement of products from manufacturers to consumers. Whether by truck, ship, plane, or train, being transported efficiently is essential for meeting delivery deadlines and maintaining customer satisfaction.

The Role of Multimode Logistics

Multimode logistics is the broader framework that enables multimodal transport and transit. It involves planning, managing, and coordinating the movement of goods using multiple transportation modes. This approach provides flexibility, allowing companies to choose the best transport modes based on cost, time, and specific requirements.

Air freight for urgent shipments.

Sea freight for cost-effective bulk cargo.

Rail transport for long-distance, inland shipping.

Road transport for last-mile delivery.

By combining these modes, multimode logistics ensures that goods arrive at their destination efficiently and economically.

Advantages of Multimodal Transport and Logistics

Cost Efficiency: Combining different transport modes allows companies to balance speed and cost, reducing expenses while maintaining delivery timelines.
Reduced Delays: Multimodal solutions are designed to minimize handovers and streamline transit, reducing delays caused by fragmented logistics processes.
Environmental Benefits: Using eco-friendly modes like rail or sea transport helps reduce the carbon footprint of global shipping.
Simplified Management: A single contract under multimodal transport eliminates the complexity of dealing with multiple carriers.
Global Reach: Multimodal transit enables businesses to reach distant markets by leveraging various transportation networks.

Conclusion

Multimodal transport is an essential components of modern global trade. They provide businesses with the flexibility, efficiency, and reliability needed to move goods across borders and continents. By combining multiple transportation modes, companies can optimize their supply chains, reduce costs, and meet customer demands effectively. As global trade continues to grow, the importance of multimodal logistics will only increase, making it a vital strategy for businesses worldwide.