RECIPES FOR SUCCESS

China still heavily relies on sea freight in its trade with Europe. Land transport allows traders to avoid passing through the pirate-plagued Gulf of Aden and the Strait of Malacca.

Over the past three years, several mainland cities, including southwestern Chongqing and Chengdu, Wuhan in central China, and northeastern Shenyang have launched rail freight services to Europe. But the Zhengzhou service is by far the most successful and does far bigger business.

Speaking at a meeting earlier this year, Xue Yunwei, vice mayor of Zhengzhou, attributed the success of the shuttle train partly to the complete transport system in the city, which is a hub in central China for railways, airlines and highways.

The ability to provide so-called "multimodal transport service" is seen by Zhao as the key to success.

Through its partner companies specializing in highway, maritime and air transport, the inland port company picks up cargo from factories before transporting it to Zhengzhou and Europe. Zhao said they are able to use the most cost-effective means of transport at all stages.

In addition to the China Railway Corporation, the company has or will soon sign partnership agreements with DHL, COSCO, DAMCO, Schenker, UPS, China Post, and China Shipping among other leading logistics companies.

The government also plays a big role in ensuring the effective and efficient operation of the rail cargo service, which involves cross-border customs, product inspection and quarantines.

Vice Mayor Xue said the government handles all the problems so that the company can focus on how to provide the best service.

Zhengzhou municipal authorities have organized several meetings, such as one in November of last year when senior customs officials from the nine countries along the rail route gathered in the city to solve problems affecting the railway's operation.

Railway cargo between China and Europe holds enormous potential, said Guo Yuhua, vice director of the China Railway Corporation's transportation bureau.

Among the 110 million tonnes of goods exported to 13 major European countries in 2012, about 78 million were suitable for railway transportation. However, only 1.5 percent of trade volume was achieved via the railway, according to research by the CRC.

Trade volume between China and Europe is currently 566 billion U.S. dollars and is expected to reach one trillion U.S. dollars in 2020.