The Role of Rail Freight in Connecting Eurasian Markets​

The Role of Rail Freight in Connecting Eurasian Markets​

Rail freight has emerged as a vital link connecting Eurasian markets, offering a balance of cost, speed, and sustainability between sea and air freight. Transcontinental rail corridors enable efficient trade. Routes like the China-Europe Railway Express (CRE) connect Chinese cities (Chongqing, Xi’an) to European hubs (Berlin, Hamburg, Warsaw) in 12-18 days—faster than sea freight (30-40 days) and cheaper than air freight (2-3 days). For example, electronics from Chengdu reach Duisburg in 14 days via rail, allowing European retailers to restock inventory quicker than with sea shipping while avoiding air freight premiums.​

Capacity and reliability are improving. Expanded rail networks and increased train frequencies (over 7,000 CRE trains in 2022) enhance capacity, with dedicated tracks and customs cooperation reducing delays. The development of the Trans-Caspian International Transport Route (TITR)—connecting China to Europe via Kazakhstan, Azerbaijan, Georgia, and Turkey—offers an alternative to northern routes, diversifying options and reducing reliance on single corridors. Improved infrastructure, such as larger loading gauge trains and modern terminals, handles heavier and larger cargo, including automotive parts and machinery.​

Cost advantages drive adoption. Rail freight costs 30-50% less than air freight while being 2-3x faster than sea freight, making it ideal for medium-value, time-sensitive goods. For example, shipping 40 tons of auto parts from Germany to China costs approximately ​

8,000byrail,comparedto25,000 by air and $3,000 by sea—striking a balance for manufacturers needing timely deliveries without high costs.​

Sustainability aligns with global goals. Rail freight emits 60-70% less carbon than sea freight and 90% less than air freight, appealing to businesses with green supply chain targets. The EU’s carbon border tax and China’s dual-carbon goals further incentivize rail use, as lower emissions reduce compliance costs. For example, a European clothing brand using rail to import textiles from China can market its lower carbon footprint, enhancing brand reputation.​

Challenges and solutions. Differences in rail gauges between countries (e.g., 1,435mm in Europe vs. 1,520mm in Russia) require container transfers, adding time and cost. However, “piggyback” services (containers on flatcars) and improved terminal efficiency reduce transfer times to 2-4 hours. Customs coordination via digital platforms (e.g., the CRE’s “single window” system) streamlines border clearance, with pre-inspection of goods reducing delays at key crossings like the Alashankou (China-Kazakhstan) or Brest (Belarus-Poland) borders.