China, Russia and Germany consider logistics JV
Russian Railways, Deutsche Bahn and China’s Ministry of Railways signed a Memorandum on Co-operation in Beijing on November 20, 2006, in respect of greater co-operation on Eurasian railway transportation.
The goal of the three parties is to increase rail freight between China and Europe via Russia, and to develop competitive market services in rail transport and logistics.
The parties agreed to establish a joint co-ordinating committee, chaired by Liu Zhijun, China’s Minister of Railways; Hans Mehdorn, CEO of Deutsche Bahn; and Vladimir Yakunin, president of Russian Railways.
A trilateral working group was also formed within the framework of the joint co-ordinating committee. The working group’s main tasks are:
to develop a schedule for the joint work
to conduct market research on rail container freight between Europe and Asia
to conduct an analysis of the current situation
to study the market potential for transport services in rail container freight between Europe and Asia
to develop measures to achieve and implement the Memorandum’s goals regarding co-operation
to prepare the working group’s final document
to develop the legal, economic and organisational basis for joint co-operation and activity
In order to implement rapid and convenient procedures for passing through border points, the parties also proposed inviting the customs services from the respective countries to participate in the working group.
On implementation of the above measures, the parties plan to hold a joint meeting to decide on other forms of possible co-operation, including the possibility of China, Russia and Germany creating a joint venture logistics company in April-May 2007.
