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Better China-Europe rail links could boost Chinese imports of fresh goods
NEW facilities to handle agricultural products at Chinese rail terminals would allow for more imports of perishable goods from Europe.
It would also open new trade routes, and boost Europe's advantage in agricultural trade with China, according to a new report from Dutch bank Rabobank.
At present one-fifth of China's food imports come from Europe. However, railway lines built in recent years linking southern Chinese cities to Europe are predominantly used to ship industrial and IT products to Western markets, while many wagons return to China empty.
To handle more food imports from Europe more investment is needed in cold storage facilities in new rail terminals in China, reported Reuters.
The YuXinOu railway that began operations in 2011 is one of the earliest projects under China's rejuvenation of old Silk Road trade routes. It runs from Chongqing through Kazakhstan, Russia, Belarus, Poland and Germany, ending in Rotterdam in the Netherlands.
But with no fruit or meat-designated ports at the Chongqing rail terminal, agricultural products imported from Europe cannot be handled by customs there and cold storage facilities are also inadequate.
The "whole warehousing or cold chain infrastructure really needs to be beefed up," Rabobank Asia chief executive, Jeroen Nijsen, was quoted as saying.
Non-perishable agricultural imports could also benefit from the new railroad routes if transport costs reach parity with shipping, added the report, giving European exporters a significant advantage in transport times over major agricultural exporters such as the United States and Brazil.
"Railway costs are still higher than shipping costs, but there's the potential to have that reverse in the next few years," said Mr Nijsen.
Use of more and larger trains would cut costs, allowing rail freight to take a share of the 10 million tonnes of perishable goods shipped to China by sea each year.
China currently imports US$6-7 billion of perishable food from Europe each year, mainly pork, dairy, fruit and seafood.
It would also open new trade routes, and boost Europe's advantage in agricultural trade with China, according to a new report from Dutch bank Rabobank.
At present one-fifth of China's food imports come from Europe. However, railway lines built in recent years linking southern Chinese cities to Europe are predominantly used to ship industrial and IT products to Western markets, while many wagons return to China empty.
To handle more food imports from Europe more investment is needed in cold storage facilities in new rail terminals in China, reported Reuters.
The YuXinOu railway that began operations in 2011 is one of the earliest projects under China's rejuvenation of old Silk Road trade routes. It runs from Chongqing through Kazakhstan, Russia, Belarus, Poland and Germany, ending in Rotterdam in the Netherlands.
But with no fruit or meat-designated ports at the Chongqing rail terminal, agricultural products imported from Europe cannot be handled by customs there and cold storage facilities are also inadequate.
The "whole warehousing or cold chain infrastructure really needs to be beefed up," Rabobank Asia chief executive, Jeroen Nijsen, was quoted as saying.
Non-perishable agricultural imports could also benefit from the new railroad routes if transport costs reach parity with shipping, added the report, giving European exporters a significant advantage in transport times over major agricultural exporters such as the United States and Brazil.
"Railway costs are still higher than shipping costs, but there's the potential to have that reverse in the next few years," said Mr Nijsen.
Use of more and larger trains would cut costs, allowing rail freight to take a share of the 10 million tonnes of perishable goods shipped to China by sea each year.
China currently imports US$6-7 billion of perishable food from Europe each year, mainly pork, dairy, fruit and seafood.
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