Intermodal trade route benefits Ningxia

International multimodal transportation has saved time and money in terms of sending cargo between China's northwestern region and northern Iran, boosting the development of bilateral trade and exchanges.

In June, a train carrying goods such as automobiles and bike parts valued at $4.03 million, departed from Yinchuan in China's northwest Ningxia Hui autonomous region, and arrived at Bandar-e Anzali in northern Iran 20 days later, according to the local government.

The trip by rail and sea was about 20 days shorter than if the goods had been sent by sea.

The 8,148-kilometer journey consists of legs by train and by sea. The journey started by train from Yinchuan, left China's border at Horgos, Xinjiang Uygur autonomous region, and crossed into Kazakhstan. The cargo was then loaded onto ships to cross the Caspian Sea to arrive at Iran's Bandar-e Anzali Port.

It was the first trip across the Caspian Sea involving international freight train transportation from Ningxia, launching a new international logistics channel between the region and West Asian countries across the Caspian Sea.

"The railway-sea intermodal transportation has reduced travel time by about 20 days, and reduced costs by about 6,000 yuan ($888) for each train car," said Li Xinsheng, general manager of railway logistics enterprise Ningxia Oulutong Company.

Government departments from Ningxia ensured the trip's smooth and efficient operation, including enhancing coordination and communication among stakeholders, drawing up the freight train plan, filing applications and arranging technicians to carry out guidance on site, in order to provide a high-quality transport service.

The launch of the service helps to thoroughly implement the bilateral comprehensive cooperation plan between China and Iran. It is also to carry out the central government's strategic plan to promote development in western China. It is a major breakthrough to develop a new international freight channel and assist regional development.

Representatives from Yinchuan freight center said it will continue to explore the international cooperation mechanism, promote the regular operation of the service and enhance its brand. It also aims to further improve efficiency and reduce operational costs.

"The trip is not only beneficial in helping products from Ningxia to be traded outside China, but also for imports as well. It is important to promote economic and trade exchanges between Ningxia, as well as neighboring provinces, and Iran and other West Asian countries," said Ma Zhijun, an official from the autonomous region's department of commerce.

Ningxia has shown its advantages of being a regional hub with the implementation of the China-proposed Belt and Road Initiative. The launch of the new route has offered a low-cost rail-sea international freight channel from Ningxia and neighboring provinces to Iran and the Middle East.

It will boost exports of local products, such as tea, potatoes and tires, and attract products manufactured in other places in China, such as electronics and high-tech products, to be assembled in Ningxia and exported.

The region has also explored other transport methods to boost international logistics to promote economic development.

In May, a train loaded with 50 freight cars departed Yinchuan bound for Budapest, Hungary.

It was the first China-Europe freight train to depart from Ningxia. It passed through Kazakhstan, Russia, Belarus, Poland and Hungary, a trip of 8,500 km.

Over the past decade, the region's gross domestic product grew at an average annual rate of 7.1 percent, and per capita GDP nearly doubled. Industries such as coal chemicals, new energy and new materials have gained national prominence, according to data from local authorities.

In the period, the average annual income of rural residents increased 2.26 times to 15,337 yuan, and that of urban residents grew 1.96 times to 38,291 yuan, said Liang Yanshun, Party secretary of the Ningxia Hui autonomous region.