Hong Kong-based Kerry Logistics continues to invest in the “One Belt, One Road” initiative that promotes trade between Europe and China by releasing plans to launch a new 18- to 20-day railway service. The 3PL also said it is planning an alternative 12- to 14-day trucking service that will connect China to the Caucasus region, encompassing Armenia, Azerbaijan, Georgia and Turkey.
Kerry has been active in its role in China’s Belt-Road project since last year, in which the country has invested billions of dollars. While associated transit time may be considerably longer than air transportation, the railway and trucking services emphasized in the project are significantly less expensive.
The Belt-Road initiative promotes friendly international trade relations, but it also has potential to undermine demand for airfreight capacity between involved regions due to the nonperishable nature of Chinese cargo exports, e.g. electrical appliances, minerals, auto parts and industrial goods – which are ideal candidates for slower ground transportation.
The new railway service will connect Lianyungang to various destinations in Turkey, running through Kazakhstan on the newly finished Baku-Tbilisi-Kars railway.