Freight rate of Railway from Chongqing to Europe may down 30% in 3 years

Reduction of freight rate is the core in realizing the normal operation of “Yuxinou”(Chongqing-Xinjiang-Europe) Railway. Chongqing plans to cut the cost by 30 percent in 3 years in order to establish a competitive edge superior to that of shipping according to Mu Huaping, Director of Chongqing Municipal Commission of Economy and Information Technology on July 19, 2012.

He also called on integration of “Yuxinou” into national strategies for construction supports so as to have another strategic channel set for West China Development and Sino-Euro economic & trade cooperation.

At present, the freight rate is slightly over 9,000 US dollars per container on this international railway with the minimum of 8,900 US dollars. The rate has been reduced from 1 to 0.86 US dollar per container kilometer for over one year. If the rate further decreases to 0.6 US dollar, it will be nearly the same with the shipping fees.

Deng Jun