The Hunan⁃Guangdong⁃Africa Rail⁃Sea Express ( Express) uses the advantageous rail freight in Hunan to build an inland port to complement the existing transport modes like Hunan⁃Shanghai water transport and Hunan⁃ Guangdong Road transport, as a more convenient and economical freight option for importers and exporters in Hunan and neighboring provinces.
Ⅰ. Overview
1. The project aims to ensure the efficient operation of all stations along 119 the route and their seamless connection with different transport modes.
With Zhuzhou station as the departure and main station and Hengyang station as an auxiliary station, the project will provide a block train transport service to and from the Greater Bay Area ( GBA) port cluster. It aims to seamlessly connect with the sea route from the GBA port cluster to Africa and serve the hinterland African countries through Greenroad International Logistics‘ net⁃ works across Africa.
2. The project will establish a standardized operation process and information management platform.
A cloud⁃based digital information management and sharing platform can standardize business processes, foreign trade documents, statistical analysis, and financial data. Furthermore, the SOP ( Standard Operating Procedure) information of each station in domestic and overseas sections can be shared with customers or partners through online real⁃time tracking and search to realize visible end⁃to⁃end management of dynamic freight transport.
3. The project is bolstered by operators with comprehensive strengths.
Under the leadership of the Department of Commerce of Hunan Province, China COSCO Shipping Corporation, Guangzhou Port Group, Zhuzhou City Construction Development Group, and Greenroad International Logistics are to set up a joint venture. With their respective strengths in ocean shipping lines, hub seaports, rail yards, and Africa⁃related businesses, they will work together to promote and operate the Express.
Ⅱ. Features
1.Efficient and economical intermodal transportation and comprehensive 120 logistics services.
In line with the SOP of intermodal transportation, the project issues full sets of the bill of lading ( B/L) to provide cost⁃effective com⁃ prehensive logistics services for customers at home and abroad. Considering that Hunan has many small⁃and⁃medium⁃sized businesses, and African merchants often purchase goods of different categories in small batches, the project will provide sea⁃rail LCL services by utilizing the customs supervision or bonded storage facilities at the departure and destination of the Express.
2. Trade agent and integrated supply chain solutions.
Its “trade + logis⁃ tics” integrated supply chain solutions provide overseas commodity display plus bonded warehousing, distribution, and other logistics services. In addition, import agent services of ores, agri⁃products, building materials, and other goods are provided with related overseas inspection and quarantine services and trade settlement services.
3. It promises vast prospects and potential for sustainable development.
The Express covers a large part of the domestic market, with enormous customers and supplies. It not only serves a large number of Hunan⁃based importers and exporters but attracts those from neighboring inland provinces with lower costs and better shipping schedules. Now, the project is becoming a real express line linking China and Africa. Meanwhile, as the freight business with Africa enjoys stable growth, import and export business with Latin America, Middle East, and the Asia⁃Pacific region can be further expanded, promising great market potential.
Ⅲ. Benefits
1. Cutting logistic costs and time.
The project will make logistics and 121 transport more economical and efficient for importers and exporters in Hunan and the neighboring provinces. Compared with a traditional river⁃sea route, the Express freight is almost the same but it can save 10 days to a base port in East Africa. As to a base port in West Africa, it can save 9 days with 3% costs lower. Compared with the mode of transporting cargo to a domes⁃ tic container port by road, the Express can reduce the headhaul costs by nearly 60% .
In addition, the rail container transport is not affected by weather or hydrologic conditions compared with barge transport and it is safer and more reliable than road transport and can thus avoid delays caused by congestion in the peak season.
2. The business growth estimate and market influence.
Taking into account the existing supply channels, customer development, rail yards, Express operation, and other factors in the hinterland markets, the Express is expected to be put into operation in September 2021. By the end of 2022, its southward export lines will operate one trip a day, and the northward import three trips a week, with 22,000 TEUs annually. This will be a solid foundation for the Express’s steady development. By 2023, with the growing railsea intermodal business, and the expansion of yard stations and the comprehensive logistics parks, the export lines will operate 23trips a day and the import lines at least one trip a day, with the annual freight volume expected to exceed 50,000 TEUs.
Ⅳ. Prospects
The project can break the limits of time and space as much as possible, 122and grow into an important bridge and bond for China⁃Africa trade. Firstly, it can attract import and export supplies from surrounding inland provinces with lower costs and better shipping schedule, and make the project a real China⁃Africa express line. Secondly, as HNFTZ advances, Hunan will be⁃ come the distribution center of African commodities, benefiting the whole nation. Thirdly, it plans to provide customized end⁃to⁃end service for international logistics by developing direct LCL services along the route and setting special trains and vessels for Hunan‘s advanced manufacturing exports.
Submitted by Shanghai Greenroad International Logistics Co. Ltd.