The President of “Infrastructure Economics Centre” Vladimir Kosoy participated in the plenary session of the International conference "Railway Business at Transit Speed" in Shanghai on the 14th of June with a presentation on the development of freight transit route from China to Europe via Russia.

1. NORTHERN SHINE OF THE SILK ROAD
VLADIMIR KOSOY

2. RUSSIAN SILK ROUTE: TRANSIT CORRIDOR AND MAJOR INDUSTRIAL HUBS
The high speed transit corridor will boost the development of
several large-scale industrial parks and container terminals

3. THE MAIN REASON TO DEVELOP RAILWAY TRANSIT:
CHINESE EXPORT AND IMPORT BECOMES MORE SENSITIVE TO TRAVEL TIME AND
DELIVERY SCHEDULE INTEGRITY THAN TO THE PRICE
0 2 4 6 8 10 12
Black metals
Steel
Organic chemicals
Electrical equipment and…
Reactors , boilers,…
Aerospace equipment
Copper and articles thereof
Plastics and plastic…
Optical, photographic and…
Pearls and jewels
Pharmaceutics
Transportation
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5
Toys , games , sporting…
Leather products
Articles of apparel and…
Optical, photographic…
Shoes , socks , etc.
Black metals
Nuclear reactors ,…
Knitted clothes
Electrical equipment and…
Furniture, lighting…
Ships, boats , etc.
Plastics and plastic…
Organic chemicals
Steel
Growth of IMPORT from Europe
to Chine (2015/2005, times)
Growth of EXPORT from China
to Europe (2015/2005, times)
Source: Eurostat, WTO

4. KEY FEATURES OF THE PLANNED TRANSIT CORRIDOR “CHINA - RUSSIA – EUROPE” IN 2030
• 7-10 days from CHONGGING TO
HAMBURG
• High frequency of scheduled
transit trains integrated with
scheduled interregional container
trains
• 98% accuracy of delivery timing
due to smooth custom regulation
• $8000 price and no shadow costs
• Balanced eastbound and
westbound freight traffic
• Isothermic containers
• Safety guarantees
• Vibration decrease

5. WHAT HAS BEEN DONE IN RUSSIA TO ENABLE TRANSIT
Changes on TRANSSIB
• The transit time via
Kazakhstan and Transsib
reduced to 15 days due to
less locomotive changes
and better schedule for
container trains
• Common Transit Tariff helps
to reduce costs
• The new CIM/SMGS
consignment note enables
seamless travel for rail
freight transports
• The number of container
inspections strongly
reduced
Free port of Vladivostok
• Duty-free and tax-free mode of free customs zone for all residence:
import, storage, consumption (use) of foreign goods, export of goods
(equipment), import of foreign goods (equipment)
• One-stop mode: 24-hour operation of border crossing points
• No need to obtain permits to hire and use foreign workers
• Simplified visa regime:
obtaining 8-day visa at the
border
• Land plot provision without
bidding for agreement validity
period
• 0% profit tax, land tax,
property tax,
• Accelerated VAT refund
procedure (within 10 days)
• Reduced salary taxes

6. WHAT HAS TO BE DONE IN CLOSE FUTURE
INFRASTRUCTURE
•High-speed railway development
•“Bottlenecks” removing
•Increasing the speed of stations passing
•Creating the large container ports (on Baltic) and “dry ports” (near Moscow)
•Improving the quality of gauge
REGULATION
• Applying the free port regulation to the new container ports
• Custom regulation change (further reduction of inspections and implementing
electronic declarations)
• Tariff discount for 5 years
RESEARCH
• Shippers and carriers interviewing
• External trade of Chinese provinces forecast
• Strategy for railway infrastructure improvements

7. SHARE OF EACH CORRIDOR IN THE TOTAL TRANSPORT VOLUME
BETWEEN EU AND CHINA IN 2016, BOTH DIRECTIONS

8. FORECAST OF THE SHARE OF EACH CORRIDOR IN THE TOTAL TRANSPORT
VOLUME BETWEEN EU AND CHINA IN 2030, BOTH DIRECTIONS

9. 9
FIRST STEPS: SUGGESTIONS FOR THE NEW CONTAINER ROUTS

10. Thank you for the attention!
Vladimir KOSOY
President of Infrastructure Economics Centre
e-mail: vvkosoy@infraeconomy.com
telephone: +7 499 340 20 94