SG Holdings to make Chinese rail freight more competitive

 SG Holdings, parent of Japanese delivery company Sagawa Express, will begin north-south rail shipping services in China this month.

The new rail service will be operated by Chinese unit Poly-Sagawa Logistics, and cover Dalian, Tianjin, Beijing, Qingdao, Guangzhou and Shenzhen.

Freight fees for the new service are expected to be comparable to or lower than truck transport owing to the larger quantities that can be shipped. Rail transport will also reduce carbon emissions and make delivery schedules more predictable.

Among the items to be delivered are automobile parts, machinery parts and apparel.

SG Holdings hopes to expand its cross-border freight services to countries in Southeast Asia and Europe.

Poly-Sagawa is a Chinese subsidiary of SG Holdings Global, which runs the overseas operations of SG Holdings. The unit provides rail and truck shipping in China on a per-customer basis.