DB Cargo to expand business in China

WNM | Sep 13, 2019 at 6:23 PM

BERLIN, September 13 (WNM) - DB Cargo sees the Eurasian region as an attractive market. Due to its broad positioning, the company is growing faster than the market.

The connection from Asia to Europe is a future market for the German logistics service provider DB Cargo. The company, which emerged from Deutsche Bahn (DB), benefits from DB's broad portfolio: “In 2018, we restructured the entire Eurasian corridor with the new DB Cargo Eurasia sales unit. DB Cargo Eurasia, as a service provider in association with DB Schenker (as a freight forwarder), DB Cargo (as a carrier) and DB Cargo Logistics (for the industry-specialised business), operates as an operator and provider of DB in the market. Through our presence in China and contacts to China Railway and various Chinese platforms, we have succeeded in building up trust and presence in Shanghai and developing new project ideas. This means we are currently growing faster than the market”, Uwe Leuschner, Senior Vice President Business Development Eurasia at DB Cargo AG, Managing Director of DB Cargo Eurasia GmbH and Director of DB Cargo Russija in Moscow, says in an interview with The World News Monitor.

Mr. Leuschner sees the coming years as positive, although he identifies some challenges on the Chinese market: “With DB Cargo Eurasia, we want to further expand and professionalise our product and partnerships. The complex business must be placed on a new competitive footing, independent of Chinese subsidies. Supplements, e.g. with new technologies such as Blockchain, integrated solutions and new product groups are to be observed – such as batteries, which are considered hazardous goods in China. We also have to look at refrigerated good and chemical products, which will drive our growth further.”, Mr. Leuschner says.

However, the company is aware that the political situation in general, the overcoming of infrastructural bottlenecks and the further improvement of communication with customers and partners will continue to be relevant for the future development. However, partnerships and cross-bordership collaboration are key for DB Cargo: “CRIMT is our contractual partner for the transport of containers on the Chinese corridor, UTLC is mainly contractual partner between Dostyk and the European external border. For example, we are currently working with CRIMT on solutions in exchange with documentation, experience and technologies in the transport of dangerous goods. For us, UTLC is a partner for innovative multimodal solutions, e.g. in the Kaliningrad - Baltic Sea route, but also in the exchange and development of new destinations, such as currently in the Xian-Verona route, which we have been serving since August 2019.”, Mr. Leuschner says.

Mr. Leuschner wants to further expand the company: “In the interest of our customers, we are constantly working on solutions that are of high quality, safe and, in particular, reduce transit time while at the same time controlling costs. The focus is on expanding the corridors via Mongolia, the Trans-Siberian line and other solutions such as the Kazakh corridor via Khorgos. In the European part, we want to expand our triangular traffic between Malaszewicze, Duisburg and Hamburg and create new triangular solutions to the south. We also have an eye on the corridors across the Baltic Sea to Northern Europe and the transit direction across the Ukraine to Dobra.”, he says.

Mr. Leuschner sees the need of more harmonization in international freight transport processes: “The aim of all those involved should be to form a "United Railway Bill" within the entire corridor over the next few years. In particular, the aim is to combine today's CIM (Règles uniformes concernant le Contrat de transport international ferroviaire des marchandises) and SMGS (Soglashenije Meshdunarodnom Grusowom Soobstschenii) regulations within a joint document. The electronic exchange of data and documents and block chain solutions between forwarders, operators and carriers can significantly increase the effectiveness of container transport. Especially in Europe, the targeted planning of new terminal destinations is a further step to increase the speed of container handling in and out of China.”

Mr. Leuschner calls for using the platform for dialogue such as within the Conference of Corridor Railways: “Rail transport is always dependent on the infrastructure and the operators involved within the individual countries, the structure of the rail system in China and in the Eurasian Union is currently still very different from the more and more liberalizing rail market in Europe. The political orientation of still monopolised structures often hinders effectively integrated solutions towards the customer. Only the dialogue between all the railways, operators and decisive freight forwarders involved can help to overcome these barriers.”, Mr. Leuschner says. 

For the DB Cargo Mr. Leuschner sees various areas of future expansion:  “An alternative routing of containers within Europe by triangular and quadrangular control train solutions is just as much a part of this as IT systems and special customer-oriented IT tools that accelerate communication and the exchange of data. DB Cargo Eurasia uses what the DB Group has already put to the test.”