Expansion of the Iron Silk Road

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Hellmann and the southern Chinese City of Chongqing are expanding their joint efforts for multimodal transports between Europe and Asia. The Hellmann Osnabrück location is to serve as a HUB for the cooperation of the Chinese company Chongqing ASEAN International Logistics (CAIL) with Hellmann’s European land transportation network. This was decided at a meeting in Osnabrück on July 3, 2018. Together with Matthias Magnor, Chen Si and Klaus Hellmann welcomed important Chinese and German representatives from Politics and Business to a joint exchange on behalf of the Hellmann Road & Rail division.

As part of the meeting, intensive discussions were held on measures to strengthen southern China’s infrastructure and its links to Western European economic areas. The task and goal of the cooperation is to continuously expand the use of the “Iron Silk Road” in the coming years and at the same time to boost the general economic and logistical development of both regions. The success of the cooperation to date and the initiation of further projects were also on the agenda. In this context, Klaus Hellmann and Matthias Magnor, together with Guiping Liu, second mayor of the City of Chongqing, and Taiping Liu, deputy director of the Chongqing Road Transport Group (parent company of Chongqing ASEAN International Logistics) inaugurated the Osnabrück location as European HUB for the consolidation of multimodal East and Westbound traffic on the “Chongqing-ASEAN Regular Lorry”. The transport route connects Chongqing with other ASEAN countries and thus enables the Chinese metropolis to be connected to the “Land Silk Road” and “Maritime Silk Road”.

The Chinese Delegation and German official guests together with Chen Si & Klaus Hellmann and Matthias Magnor in front of the Speicher III, Hellmann Worldwide Logistics Headquarters in Osnabrück, Germany

Other guests included officials from the city of Chongqing and high officials from the Chongqing Commission of Commerce, the Overseas Chinese Affairs Office and the Municipal Logistics Council. On the German side, Stefan Muhle, State Secretary in the Lower Saxony Ministry of Economics, Labour, Transport and Digitization, Burkhard Jasper, honorary mayor of the City of Osnabrück and Prof. Hans-Wolf Sievert, entrepreneur, university lecturer and China expert, were welcomed to Osnabrück.

Successful cooperation since 2017

Hellmann has been an important logistics partner of the City of Chongqing for several years, in particular through the successful development of intercontinental multimodal rail transport between Germany and South Asia, including road connections to neighboring countries such as Vietnam or Thailand. Hellmann has been cooperating locally with the state-owned company Chongqing ASEAN International Logistics (CAIL) since September 2017. The first Hellmann container left Xingan Province and arrived at the Chongqing Nanpeng Highway Bonded Logistics Center three days later. From here, the container loaded with branded clothing was loaded onto the Rail Solutions International train after reloading and customs clearance and transported to Metzingen, Germany – a successful start for the long-term cooperation.

With the combination of rail and road traffic, Hellmann shortens the delivery time between Asia and Europe by up to 35 percent compared to sea freight. With Hellmann’s logistical possibilities in Europe, but also the good connections of the Chinese partners in Chongqing, paired with the handling facilities created there and the efficient distribution networks, LCL shipments between Europe and Asia can also be delivered door-to-door. The Fashion, Chemicals and Automotive divisions are very interested in this infrastructural development. The latest agreement should therefore not stand in the way of the successful expansion of the “Iron Silk Road”.

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