Ulyanovsk Region Received First Direct Container Train from China under One Belt One Road Project

The train arrived in the region from Zibo, China, on 14 July. It covered the distance of 9,000 km in two weeks.



The train brought 53 containers with automotive components, construction materials, oil and gas equipment and sports goods from China. Next, these items will be distributed and shipped to cities of the Volga Federal District.

Thanks to the project, Ulyanovsk entrepreneurs will be able to directly send their products abroad, which will save time spent on delivery and reduce transportation costs.

“Our advantage is the ability to collect goods and then export hem. There are special support measures in China that make it possible to offset some of the costs for enterprises sending goods. Governor Sergey Morozov proposed a similar initiative and sent a letter to the federal center. We are planning to develop new logistics channels, and our task here is to collect goods not only from Ulyanovsk exporters, but also from manufacturers in neighboring regions. Within the next couple of days, this train is to be at least 50% loaded with items. Such trains will be sent on a regular basis every three weeks. We invite all interested companies to take part in it,” - said Ruslan Gainetdinov, Chairman of the Board of the regional Entrepreneurship Development Corporation.

The Ulyanovsk region sends locally produced sunflower oil and grain to China.

In April 2019, PSEZ "Ulyanovsk" and SEZ "Zibo" signed a Memorandum on Cooperation to implement a direct container train project.

“We have been preparing for over a year. In November, employees of the port special economic zone "Ulyanovsk" organized a visit of Chinese specialists from SEZ "Zibo", Chinese railway and customs to the region and carried out a logistics audit together. According to its results, an agreement was reached to send the train. It was supposed to launch in the first quarter of this year. However, due to the difficult epidemiological situation, the project was postponed. As soon as the situation improved, my partners and I resumed work on this project. Freight transport with China gives us the opportunity to create a large logistics hub in the center of the Volga Federal District - the Ulyanovsk region. We are going to place it in the port special economic zone to bring goods there for further distribution across Russia. The SEZ has a special tax and customs regime, which will benefit the business,” - said Oleg Barabanov, Head of PSEZ "Ulyanovsk".

According to Dmitry Nesterov, Deputy Director of Vavs Transport Company, the main advantage of such a logistics channel is its reliability, as well as the opportunity to save time and to reduce the product cost.

Dmitry Nesterov said, “We have built a new station and have already started to receive cargo; many large companies have returned to the region for customs clearance. Together with Chinese partners, we have launched a container train, which allows to deliver goods four times faster. Whereas previously the delivery time took 60 days, today it is reduced to 15 days. Another advantage is the security of these deliveries. In addition, the product cost is reduced by almost 20%. Thus, the train changes both logistics and prices, as well as help to develop trade routes quickly and efficiently.”

One Belt One Road is implemented as part of the national project "International Cooperation and Export".

Last year, the Ulyanovsk region achieved a record indicator - its exports exceeded US$ 1.1 billion. The main goods shipped to China include inorganic chemical products, optics and medical equipment, machinery, water, articles of stone, etc.