OJSC Russian Railways and China Yingkou Port Group Corporation sign Memorandum of Cooperation
Russian Railways and China Yingkou Port Group Corporation signed a memorandum of cooperation during a state visit of Russian President Vladimir Putin to China.
The document was signed in Beijing on 3 September 2015 by Oleg Belozerov, President of Russian Railways, and Lee Hechun, Chairman of the Board of Directors at Yingkou Port Group.
According to the document, Russian Railways and the Yingkou Port Group regard each other as strategic partners and expressed an interest in forming a framework to cooperate on the joint development and management of logistics centres and international multimodal transport.
The main areas of cooperation in the framework of the memorandum will be to:
- create a Russian-Chinese logistics centre in the Moscow region;
- set up a joint operating platform;
- establish a Chinese-Russian logistics park at the port of Yingkou.
It is expected that consultations will be held on establishing a joint venture with or a buyout by Yingkou Port of the 49% stake in the Bely Rast Trade and Logistics Centre with the aim of its further joint development and providing consolidation, storage, distribution and customs clearance services.
It is also expected that a joint operating platform will be set up on the basis of a joint venture in order to provide cross-border freight clearing, transshipment at the port and multimodal container transportation.
The possibility of creating a Chinese-Russian logistics park at Yingkou port will be considered, taking into account the port's extensive opportunities to organise combined container freight transportation.
According to the memorandum, the two signatories will contribute to the park's development by transferring part of the freight from sea to rail and transport it, with access to the network of Russian Railways across the Zabaikalsk - Manchuria railway crossing point. Shipments will also go in the opposite direction, however, including transit via the port of Vostochny to Yingkou port.
One promising avenue is also cooperation with Yingkou Port's own partners, such as the Alibaba companies, the world leader in e-commerce. The volume of the Russian e-commerce market in 2014 was estimated at USD7 billion, with trade with China accounting for 60% of that figure.
Yingkou port's development strategy over the next 5-10 years provides for attracting up to 10% of the traffic from the sea route to the land route in accordance with the Chinese government program "One belt - One Way."
In order to implement the provisions of the Memorandum, a working group will be set up which will prepare proposals for areas of cooperation of mutual interest, including in third countries.