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Klaipeda port orients itself towards China

Published in jura24.lt on 8 February.

A container train Saule which left Klaipeda has already reached Kazakhstan. The project has been evaluated as a successful one. We talk about the project and how it was developed with the train’s operations curator and head of VPA Logistics Darius Bernotas.

“Can we see any tendencies if we compare the first routes of train Saule with the present ones?”

“The second journey of train Saule is a good example of its variety. We have planned such activities. All of its cargo is different, ranging from hygeniac packets to a wide range of consumer goods. All of the containers were transported through the port of Klaipeda from EU and non-EU countries. The containers were handled both in Klaipeda Container Terminal and Klaipeda Smelte Terminal. The cargo in 45 containers was collected from six different clients. They are going to be delivered for different recipients. It is different if compared to its first trip, when we had only one client,” explains Mr. Bernotas.

“What is the scheme for container transportation?”

“The train leaves the port of Klaipeda and reaches Kazakhstan’s Alma Ata train station in 7-8 days. From here, the cargo is distributed towards different destinations. The biggest part goes to China. Another train transports these goods from Kazakhstan to China’s Dostyk point. In this point, cargo loads are distributed and another load of cargo is planned for the journey back to Klaipeda,”

“How long does the journey take from the primary to the final destination?”

“The distances are long; the journey to Alma Ata is six thousand kilometers and then three to four thousand kilometers to China. We have estimated that the journey from the primary point to the recipients in Western Europe was of 11 thousand kilometers length and took 18 days to complete,”

“What is the transportation cost for one container?”

“So far, we have not estimated it in such a detail. We are going to do this after the second trip because the first one was a test trip. The transportation of cargo by train is much more expensive than the same transportation by ships. However, the ships manage to make a similar journey in 45 days and we deliver our goods in 7-8 days. From China to Alma Ata, the trains reach destinations in 5-6 days and from the port of Klaipeda to the consumers in 4-5 days. We save by saving the transportation time,”

“You are transporting cargo from the North Western region of China. This the most sparsely populated and least developed part of China. Are you not afraid of cargo shortages?”

“China is China and it is rapidly evolving not only in the Eastern parts, where the biggest ports are located. We are planning that even the less populated region of China will have enough goods to transport them to the Western Europe. This has been proved by our first two test trips. Both to China and from China, the train was completely packed. The project will be successful only if the train is loaded going both ways. The train has to carry loads, instead of going all empty,”

“What kind of cargo can be carried in the train going between China and Western Europe and through the port of Klaipeda?”

“For the first time, we brought a lot of computer and electronic goods. The second train already brought a wide variety of goods. We are trying to negotiate various consumer goods, including automotive parts. Saule has carried various cargos, previously transported to China by different ways. The train is not oriented to temporary cargo or small amounts of it,”

“What is the possibility for Saule to have a regular schedule?”

“Already since February 15, we are planning a more stable schedule for the train. The train will make two trips to Kazakhstan’s Alma Ata train station,”

“What is the function of your company in organizing the schedule for the train?”

“We collect cargo, arrange loading and release the train. Next, the following functions are performed by Lithuanian Railway. They transport cargo and managed border crossing formalities. We have started the project together with Lithuanian Railways two years ago. At the beginning, it was very hard. The big push came from the Lithuanian Presidency and Ministries of Transport and Foreign Affairs. That is when the project gained more weight. Now, we do not have any problems in forming the train. Klaipeda port has acknowledged the project as one of its priorities. Upon the formation of cargo, both freight forwarders and container companies worked well,”

“How do you assess possible competition in the field, knowing the fact that a lot of surrounding ports are orienting to the transportation of cargo from the North Western region of China?”

“Competition levels are high. A similar train goes from Riga to Alma Ata. Also, Tallinn has a similar one. The North Western region of China has become a target for Western operators. The route has raised some interest in Finland. Some of the trains are going through Ukraine and Poland straight to the Western countries. Competition is a healthy thing. It is also a signal that such a way of transporting goods is efficient and perspective. China is the place of manufacturing, thus, it has a huge market and a lot of potential to expand.”

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