Experts said rail links to the rest of the Eurasian landmass is a promising endeavor for China after the country's top economic planning agency announced a 5-year blueprint on Monday to develop the CHINA RAILWAY Express (CR express).
The 2016-20 blueprint for the CR express, which is made up of rail cargo links between China and Europe and other regions, has set a target of operating as many as 5,000 trains along these routes each year by 2020.
Other objectives include improving cargo volume on journeys back to China and the inclusion of international mail service.
The blueprint, issued by the National Development and Reform Commission (NDRC), was drawn up based on the country's 13th Five-Year Plan (2016-2020), "Belt and Road" (B&R) initiative, and its medium- and long-term blueprints for railway development.
Tian Yun, director of the China Society of Macroeconomics Research Center, said although the target of 5,000 trains a year is a daunting task, given the slack global economy and weak recovery, the target is justified as it is part of China's efforts to go West.
Since the first cargo train started to traverse the vast space between China and Europe from Southeast China's Chongqing in 2011, there have been 1,881 trains between China and Europe as of June this year. The number included 502 trains originating in Europe. Goods transported along the route were worth $17 billion, according to the NDRC.
"Central Asia, the Middle East and Europe are the potential new growth points for China during the next phase of development," Tian told the Global Times on Tuesday, noting the complementary relations between China and countries along the rail route.
"China's competitively priced industrial products and expertise in infrastructure will find markets in those countries more easily than in the developed countries, and the yuan will also gain international influence via the trade," Tian noted.
The development of those rail routes will boost growth in adjacent areas and thereby create new markets, said Tian.
Currently, 39 routes link a total of 16 Chinese and 12 foreign destinations.
The railway represents a new form of cargo trade that suits the modern supply chain, which is characterized by smaller orders, multiple dispatches and high-delivery frequencies
Formally called the Silk Road Economic Belt and the 21st Century Maritime Silk Road, the B&R initiative was proposed in 2013.
Utilizing the route, logistic firms have an option that is faster than seaborne services and cheaper than air freight.
Goods in dozens of categories, including electronics and machinery, are transported from China to European destinations.
On the way back, the trains carry goods such as auto parts, sedans and baby products.
As the rail link grows, the organic food in those countries will also find markets in China, Tian said.
"The central government's plan will also better deal with the subsidy issue and balance intercity rivalry concerning the CR express," Tian said.
