DHL Fast Tracks Connection Between China, Russia & CIS

SINGAPORE, May 3, 2011 /PRNewswire-Asia/ --

• Launches daily rail service linking 14 cities in China to Russia, CIS and beyond
• Extends options to manage air/ocean congestion, gain competitive advantages with flexible point-to-point services

DHL, the world's leading logistics company, has rolled out a key component of its multi-modal offering in China with the launch of daily continental rail services departing from Beijing and Shanghai to Russia and the Commonwealth of Independent States (CIS) and back. The new end-to-end rail service links 14 cities in China with seven CIS countries and Russia. Ocean freight through the China ports of Lianyungang, Tianjin and Qingdao can be directly loaded onto the rail network or taken by road and consolidated before taking to the tracks in Beijing or Shanghai.

Dubbed the "China land bridge", the China to Russia and CIS service broadens the gateway to trade both in and out of Asia as global and regional customers combine DHL Global Forwarding's sea and rail options. The "China land bridge" cuts transit time from an average of 35 to 42 days by sea to 19 to 25 days by rail and costs 90% less than air freight, is 30% faster than ocean freight and cuts CO2 emissions by 95% compared to air freight on certain routes.

Kelvin Leung, CEO, North Asia Pacific, DHL Global Forwarding, said: "China's phenomenal investment in its rail network is creating a cost-effective and flexible alternative link to West Asia and Central Europe. Customers are beginning to realize that the benefits of rail are only going to get better as the train network grows alongside intra-regional trade amongst the Shanghai Cooperation Organization (SCO) members of Kazakhstan, China, Kyrgyz Republic, Russia, Tajikistan and Uzbekistan (1)."

With this extension of its multi-modal service, DHL Global Forwarding is pioneering a new era of rail freight forwarding in China by capitalizing on the country's new infrastructure and the company's ability to provide value-added services that services rail carriers alone cannot supply.

"With DHL Global Forwarding, rail in Asia becomes a powerful option for customers because while rail carriers provide station-to-station delivery, we offer end-to-end services that include break bulk, cargo deconsolidation and last mile delivery. When China's high speed railway - due for completion within the next three years - gets plugged into the current network, the trade gateway between east and west will never have been easier to navigate," added Kelvin Leung.

Ambrose Linn, Head of Road Freight & Multimodal, North Asia Pacific, DHL Global Forwarding, said: "Leveraging the company's strong presence in Europe and expertise in supply chain and on-forwarding abilities, DHL Global Forwarding's China to Russia and CIS rail service offers a 'cost and convenience' advantage that is won by connecting extensive national networks and allowing cargo to be collected from or delivered to every first tier city, thereby cutting pre-carriage and on-forwarding delivery costs. It also answers customers' needs for faster-to-market solutions in China and beyond."

Managed by DHL Rail Competence Center in Shanghai, customers using the China rail land bridge enjoy proactive services such as the capability to track and trace all shipments anywhere en route using RFID technology in collaboration with China's rail carriers. DHL experts also provide optimal routing and loading solutions which are integrated with DHL Global Forwarding's multi-modal services in air, ocean and trucking for last-mile delivery.

Added unique benefits of DHL Global Forwarding's new service include a 'no deposit fee' for containers and flexibility on the type of container used. This allows DHL Global Forwarding to reduce container allocation time and provide empty containers to customers within 4 to 5 days - half the usual time. As a result of DHL Global Forwarding's in-country partnerships, customers can also choose to use secondhand containers or their own. For bulky or oversized goods, wagon transportation is available and dedicated train services can also be arranged.

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DHL - The Logistics company for the world

DHL is the global market leader in the logistics industry and "The Logistics company for the world". DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 51 billion Euros in 2010.

Notes to the Editor

• International rail is a key component of five multi-modal services that DHL Global Forwarding unveiled last year as the solution to future logistics - enabling businesses in China to leverage to the maximum the country's investments in infrastructure and enhance trade and connectivity to the world. The multi-modal services include Rail-Air /River-Rail/Sea-Air/Cross Border Road Freight and International Rail. Used together they are designed to ease the capacity shortage for air and ocean freight from China, an issue that could worsen as freight volumes from China and Asia as a whole lead the global air freight and ocean freight recovery.

• DHL's international rail service offers a range of options from bonded and non-bonded goods, door-to-door, station-to-station, door-to-station, station-to-door services with integrated multi-modal solutions such as air, ocean and road. DHL value-added services include track and trace, customs brokerage and documentation as well as routing consultancy and loading solutions which cover all destinations including Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan as well as China and Russia.

Note:

1. The Shanghai Cooperation Organization (SCO) is a permanent intergovernmental international organization creation of which was proclaimed on June 2001 in Shanghai (China) by the Republic of Kazakhstan, the People's Republic of China, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan and the Republic of Uzbekistan (Central Asia).