New sea-rail service aids import flow from Peru

A container ship anchors at Ningbo-Zhoushan Port, waiting to be unloaded. (Photo by Yao Feng/For China Daily)

A newly opened sea-rail transportation service has facilitated the import of nonferrous metals from Peru to Northwest China's Gansu province, which is expected to expand business and benefit the economies of both sides.

Baiyin Nonferrous Group Co, a Baiyin, Gansu-based multinational mining company, began using its "one-stop" freight transport service four months ago. By the end of this year, the company will have imported some 6,000 containers totaling 160,000 metric tons of nonferrous raw materials through the service.

In the first three months after regular transportation service began, 2,300 containers had been delivered to Baiyin.

Wu Xiaotao, chairman of the Lanzhou New Area Road Port Logistics Co, a company under the Gansu Logistics Group, said cargo is shipped from the Port of Callao in Peru to Lianyungang Port in East China's Jiangsu province, and then transported by rail to Baiyin. The sea transport process takes about 60 days, while the rail journey takes four days.

The multimodal transportation has optimized business processes and simplified customs procedures, ensuring a sufficient supply of raw materials for Baiyin Nonferrous Group and reducing logistics costs by 15 percent, Wu said.

Yang Shuguo, chairman of Baiyin Nonferrous Railway Transport Logistics Co, a subsidiary of Baiyin Nonferrous Group, said metal raw materials are sourced from a reprocessing project of Minera Shouxin Peru, a joint venture between Baiyin Nonferrous Group and Shougang Hierro Peru — a subsidiary of Shougang Group.

The project, the first of its kind in Peru, uses Baiyin Nonferrous Group's specialized technology to recover copper, zinc and iron.

"In the past, we had to find different logistics companies in Peru, at seaports and domestically for transportation, taking three to four months. The new service has made it much more convenient and efficient," Yang said, adding that the company plans to increase import volume to 250,000 to 300,000 metric tons next year.

In addition, the transportation service will help broaden the group's market, helping its products tap markets in Europe and thus enhancing its international competitiveness and market share, he said. It will also help promote the deep integration of the group with South American countries in industrial and supply chains, providing it with more cooperation opportunities and development space.

Executives from Minera Shouxin Peru said that China's huge market provides an ideal platform for Peruvian companies to promote and sell their products and services. Additionally, China's efficient supply chain and logistics system can help reduce operating costs and improve efficiency.

Wang Yuecheng, chairman of Gansu Logistics Group, said his company plans to conduct on-site inspections in Peru with the aim of establishing regular transportation of various types of goods along the current route.

"We will strengthen cooperation with partners in Peru and its neighboring countries to provide sound logistical support for bilateral economic and trade cooperation," Wang said.

Peru's Ministry of Foreign Trade and Tourism recently said total trade volume between China and Peru in the first eight months reached $25.73 billion, up 11.2 percent from the same period last year.