CJ Logistics opens up its Eurasian Iron Silk Road

CJ Logistics opened up its international multimodal transport service between Europe and Asia called 'EABS'.

On May 2nd, CJ Logistics (CEO Keun-tae Park) announced that the company started the international multimodal transport service between Europe and Asia called 'EABS' (Eurasia Bridge Service), utilizing TCR (Trans China Railway).

This international multimodal transport service is performed by two different modes of transport. When goods are stored in a container in China, they get carried by a truck to a train station. After using a rail freight transport service to arrive in Europe, the goods are directly delivered to a customer's warehouse or factory.

CJ Logistics operates the connecting route that goes through major stations including China's Chengdu, Poland's Lodz, Germany's Nuremberg and Netherland's Tilburg. The company also provides door-to-door delivery service using trucks if the end destination is within 400 km.

CJ Logistics closely works with railroad transportation company RTSB to provide a high quality rail freight transport service. RTSB Group has 17 operating branches throughout Eurasian corridor and transports over 150,000 TEU by rail per annum.

In China, CJ Logistics provides integrated logistics services to its customers by cooperating with its affiliate CJ Rokin. The company also utilizes CJ Speedex's over 40 warehouses and its networks. In addition, CJ Logistics offers ground transportation services through its branch offices in Europe.

Using TCR will cost one-fifth of air transport and is three times faster than sea transport. Demand for the rail freight transport has been increasing lately because of its low cost and flexibility.

Last year, the rail freight transport market between Europe and China was estimated to be 550 billion Won and, this year, it is showing an annual growth rate of 10~20%. This market is also predicted to grow over 750 billion Won by 2020.

In addition to its current routes, CJ Logistics plans to expand its rail freight transport. The company is going to have 52 routes from China to Europe and 74 routes from Europe to China in the future, connecting major Eurasian countries and cities.

Future plans also include sea transport with CJ Logistics' plans to provide a new integrated multimodal transportation service. By utilizing sea-railway-ground transportations, the company hopes to connect Eurasia, Indochina, and India.

In March, CJ Logistics signed an MOU with Russia's Fesco to expand its network in Russia and develop trade routes along TSR (Trans-Siberian Railway). By adding the new rail freight transport service using TCR, CJ Logistics is expected to expand its northern logistics services.

'Northern Logistics' is one of the most important parts of 'The New Northern Economic Policy' that is run by the Korean government. If this policy works out, reaching out to the European market will become more convenient through the railway.


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