Train connects European suppliers with China’s e-commerce customers

China train.jpg

Cross border delivery of items ordered online in China is now possible due to new train service available from site Kaola.com. An e-commerce company backed financially by Netease, Kaola.com ran its first train of products into Chongqing’s Lianglu Cuntan Free Trade Port Area, Yicai Global reports.

With the train signaling Kaola being officially opened for business at the port area, the agreement to “create railroad transport channels” was made official between Kaola, the Chinese cross-border rail operator Yuxinou Chongqing Logistics Co., and France’s national rail company SNCF Logistics. With the China-based e-commerce website gaining a foothold in the Chinese consumer market, there has been more interest in European goods ordered online and shipped into the area.

Both “full-container load and less-than-container load” service will be offered. Kaola will also seek to “develop southwestern European markets.” As Kaola has taken the lead in boosting the import-export trade, other e-commerce companies and logistics companies close to Chongqing and other southwestern European markets are expected to follow suit.

Freight delivered by the railroad is a cost-effective solution to delivering shipments at a lower cost to the land-locked area. With the Chinese market perceived as one of the most price-conscious markets, Kaola is set to secure its footing in this demographic.

The train car of products served as a good start for Kaola as the company revealed its plans to have logistics facilities built at Chongqing. With these plans in place, it will set a new benchmark for the partnership signed by all 3 companies regarding cross-border trade.

The Lianglu Cuntan Free Trade Port Area is found at the center of the Chongqing free trade zone. About 1,458 km away from Beijing.

Rail-based trade with Russia from the area was recently introduced as well, reported Yicai Global. The first train left Xiamen’s railroad freight yard in Haichang on Aug. 25, after getting cleared at the customs authority. It followed a route to Moscow via Erenhot located at the Inner Mongolia Autonomous Region (north of China) and at Dzamlin-Uud, also in Mongolia. The trip lasted almost two weeks spanning a total distance of 9,960 km. Its first sojourn managed to take with it between 40 to 50 cars.