New rail cargo route links China, Iran

As part of the One Belt One Road Initiative, China has commenced a rail service to Tehran, Iran, according to multiple news sources.    Yinchuan, China and Tehran, Iran have been linked for the first time via a cargo train that began operations on Tuesday, according to multiple news sources.
   The first train departed from Yinchuan, capital of northwest China’s Ningxia Hui Autonomous Region, with more than 560 metric tons of machinery, daily commodities, ceramics and glassware. With a transit time of 15 days, the cargo will reach Tehran, capital of Iran, via Kazakhstan and Turkmenistan.
   According to Ningxia’s Department of Commerce, the new cargo route will help increase trade between China and countries in central and west Asia.
   “The train takes more than 20 days less than transporting by ship, and is expected to greatly lower our delivery costs,” said Liang Hua, whose company is in charge of the operation, according to multiple media sources.
   The route is the second to depart China as part of the One Belt One Road Initiative, which has an operational budget of $124 billion. The first rail route departed Yiwu in the Zhejiang province for Iran last year.
   Iran’s supply chain has had a troubled past, as sanctions prevented major ocean, truck and rail carriers from transporting goods into the Middle Eastern country. Ocean carriers such as MSC and Maersk Line resumed services to Iran early in 2016 after a five-year absence, though Yang Ming was the first to halt operations again earlier in 2017 due to “current geopolitical tensions in the region.”