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REC, Russian transport operators launching Agroexpress - scheme for swift export of agroindustrial products to China

4 september 2019

Russian and Chinese transport operators supported by Russian Export Center have agreed to create the new scheme for export of Russian agroindustrial products from Russia to China, which will allow to reduce the time of delivery of Russian food to Chinese market significantly.

On September 4, 2019, within the framework of EEF-2019, a solemnized ceremony of signing the package of cooperation agreements between the participants of the project: Russian Export Center JSC, the national institution for support of domestic non-resource exports, RZD Logistics JSC, the major multimodal logistics operator in CIS and Baltic states, Slavtrans-Service JSC, FVK Sever LLC, took place.

The documents have been signed by Aleksei Kozhevnikov, Senior Vice President, REC, Andrey Tonkikh, First Deputy General Director, RZD Logistics JSC, Andrey Gollandsev, Chairman of the Board of Directors, Slavtrans Service JSC, Dmitry Valeryevich Ermolov, Managing Director, FVK Sever LLC. The signing ceremony took place in the presence of Andrey Slepnev, General Director, REC, and Oleg Belozerov, General Director, Chairman of the Board of RZD OJSC.

The parties have agreed to work together, in order to promote export of Russian agroindustrial products to China, using the expeditious refrigerated container trains (Agroexpresses), as well as implemented the solutions for principle routes of delivery from the major terminal and warehousing complexes: from Selyatino station (Moscow region) and Vorsino station (Kaluga region) to Chengdu, Sichuan Province. Along with that, the companies have agreed that the list of routes will not be restricted, and can be modified and supplemented. The first Agroexpress is expected to be dispatched to People's Republic of China in the earliest possible timeframe.

Russian Export Center will be looking both for customer shippers implementing export carriages of agroindustrial products in Agroexpress freight trains, and for foreign partners.

The Agroexpress project has been scheduled to start with 2 trains per week, and further, as soon as practicable, to proceed with 5 Agroexpresses coming from each departure point of export-oriented hub stations. Scaling up the project to various Russian and Chinese regions has been planned. Delivery of ready food products directly to the inland China, if compared with the traditional sea routes, would significantly reduce the delivery time and notably mitigate the aggregate transport expenses of the Russian exporters, open new markets in China, due to significant competitive advantage over the European and American exporters operating only through Chinese seaports. At the same time, Agroexpress would open the new opportunities for the Chinese exporters supplying their products to the Russian market in reverse loading mode

Andrey Slepnev

According to him, the counter measures of state support of exports, which already exist in Russia and China, would allow to attain extremely favorable conditions of mutual trade with direct settlements in national currencies, with full fiscal traceability.

RZD Logistics will be responsible for provision of the integrated transport and logistics services to Agroexpress, for provision of the railway rolling stock, payment of railway fare in the Russian territory, and arrange the first and last mile carriages. Moreover, the company will render assistance in promotion of Russian agroindustriral products abroad, also in China.

Since the early years of existence, Eastern Economic Forum has been the reputable platform where the principle directions in development of cooperation between Russia and the Asian-Oceanian countries have been traditionally established. So, RZD Logistics makes its feasible contribution to that important process. The agreements signed by our company would give additional impetus to development of exports of domestic agroindustrial products to China, which has been one of the most promising areas in the field of foreign trade relations with China. Also, thanks to the assistance of our reliable partners such as REC, we will undoubtedly be able to offer the innovative and affordable logistics solutions to all Russian manufacturers and Chinese consumers concerned

Vyacheslav Valentik
General Director, RZD Logistics JSC

In their turn, such companies as Slavtrans – Service and FVK Sever, as owners of export-oriented terminal and logistics centres in Selyatino and Vorsino stations, respectively, will provide their own sites with multi-modal transport and warehousing infrastructure, arrange the necessary logistics terminal services, and provide accommodation platforms for Moscow and Kaluga regional customs posts and territorial administrative offices of Federal Service for Veterinary and Phytosanitary Surveillance for implementation of phytosanitary and veterinary control of the products being transported.

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