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May 24, 2019

RZD Holding and FESCO Launch Transit Service to deliver freight from Japan to Europe via Russia

RZD Logistics, a subsidiary of Russian Railways, and the FESCO transport group are launching Trans-Siberian Landbridge, a joint transit service to expedite freight delivery from Japan to Europe along the Trans-Siberian Railway via Russia’s Far Eastern regions. A test container was dispatched from the Japanese port of Yokohama on 23 May 2019 in the presence of Alexander Misharin, the First Deputy Managing Director of Russian Railways.

The Trans-Siberian Landbridge intermodal chain runs along from Japanese Port – Vladivostok Sea Trade Port – Trans-Siberian – Brest – European Destination. The total delivery time is from 19 days, compared to about 45 days when transported by sea through the Suez Canal. The arrival of the test container carrying non-hazardous chemical products dispatched from the Japanese port of Yokohama to Wroclaw in Poland is expected in mid-June.

As part of the joint transit product, FESCO will undertake deliveries by sea, handle loading and unloading at the port and provide the container fleet, while RZD Logistics is responsible for the rail transportation.

Based on the test delivery, the two parties will work out the transportation technology in order to make the service available to customers in June 2019. They will then organise a return delivery from Europe to Japan.

It is expected that the Trans-Siberian Landbridge service in Europe will deliver car components and consumer goods.

"Today, we are opening a new page in cooperation with Japanese business and presenting a new and unique product. We have agreed with Japan’s Ministry of Transport to develop jointly multimodal transportation through the Far Eastern ports of Russia and along the Trans-Siberian railway. Over the past 5 years, Russian Railways has invested more than $ 5 billion in the development of railways in eastern Russia, and shipments along this route have increased by more than one third during this period. We see an enormous amount of potential for cooperation with Japanese colleagues and would like to use the existing infrastructure, including for the transport of goods from Japan," said Alexander Misharin.

"At the moment, a total of 3 million Twenty-Foot Equivalent units (TEUs) per annum in freight traffic between Japan and Europe currently goes through the Suez Canal, while we, together with colleagues from Russian Railways, can offer our customers a much faster and more efficient service on the Trans-Siberian Railway. Attracting transit freight to Russian infrastructure corresponds to national strategic objectives and the objective economic interests of market participants. I am confident that the Trans-Siberian Landbridge will enjoy strong demand from Japanese partners and will strengthen and expand our mutually beneficial cooperation with them," said FESCO President Alexander Isurin.

"As a company responsible for the development of international transit at RZD Holding," said Vyacheslav Valentik, Managing Director of RZD Railways Logistics, "we have accumulated a unique range of competences in this area and are now ready to offer our expertise to Japanese partners interested in quality freight delivery to Europe. Our experience on International Transport Corridors (ITCs) with India, China, Vietnam and Korea shows that an increase in delivery speeds and the construction of organised multimodal chains is exactly what a modern shipper needs. A synergy of Japanese and European businesses with the combined capabilities of our three companies led to the creation of the product Trans-Siberian Landbridge is the key to its successful development,"

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