China-Europe Rail Freight Transport Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 12.70 Billion |
| Market Size (2029) | USD 40.30 Billion |
| CAGR (2024 - 2029) | 25.99 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China-Europe Rail Freight Transport Market Analysis
The China-Europe Rail Freight Transport Market size is estimated at USD 12.70 billion in 2024, and is expected to reach USD 40.30 billion by 2029, growing at a CAGR of 25.99% during the forecast period (2024-2029).
- The development of a rail network between China and Europe is part of the long-term strategy of the government of China, to achieve global connectivity through its One-Belt-One-Road (OBOR) initiative. The strategy aims to restore and develop the ancient Silk Road between China and Europe, by encouraging investment in Eurasian transport and logistics, including rail networks, to boost Chinese trade and investment and economic integration.
- Owing to the rising capital costs and wages in coastal areas, many manufacturing and production companies are relocating their plants to inland cities in China, which are far away from the Chinese commercial coastal lines. The companies like HP find it difficult to export products to Europe since the commodities need to travel thousands of kilometres east to the seaports and ship them back to the west of Europe. The development of railroads has offered companies in reducing transit times and shipping of goods from the production site directly to the Countries in Europe.
- According to China Railway, the trains have transported 972,000 twenty-foot equivalent units of cargo this year, a 5% increase from the same period last year. With 82 routes, the trains may now go to 200 cities across 24 nations in Europe, creating a transportation system that spans the whole continent. 53 different categories of goods, including grain and timber, apparel and accessories, and autos and parts, are all transported by trains. China has worked hard to boost train capacity by modernizing domestic transportation systems and coordinating infrastructure development with foreign railways. The average daily freight volume for the China-European freight train services on the eastern route increased by 41.3% from 2020 to 2022.
- The cooperation between Chinese regions, Russia, and other European countries is expected to lead to the evolution and growth of manufacturing activities across the network. This situation is anticipated to create further opportunities for the rail operators and rail freight forwarding service providers, to look after the supply chains of the manufacturing companies involved in the region. The European exports to China by rail mainly consist of metals and metal products, and chemicals, while minerals consist of machinery and equipment, minerals and chemical raw materials.
China-Europe Rail Freight Transport Market Trends
This section covers the major market trends shaping the China-Europe Rail Freight Transport Market according to our research experts:
Increasing freight volume driving the market
Following a freight train from Xi'an in Northwest China's Shaanxi Province to Hamburg, more than 10,000 China-Europe freight trains have used the rail network so far in 2022, surpassing the same milestone achieved in 2021 by 10 days earlier. In the first eight months of the year, total cargo moved increased by 5% year over year to 972,000 TEUs. China began operating new rail and maritime routes in 2022, beginning in Xi'an and the southwest city of Chongqing and leading to the Black Sea, the Caspian Sea, and Romania. The ports along the freight rail route between China and Europe have all been modernized.
The ports along the freight rail route between China and Europe have all been modernized. Data showed that from the start of 2022, the capacity of the west channel has increased by 20.7%, that of the middle channel by 15.2%, and that of the east channel by 41.37%. According to China Railway, the China-Europe freight train has completed 92 operational routes connecting 200 towns in 24 European nations, enhancing economic relations between China and Europe and the Belt and Road Initiative.
The imbalance in the rail traffic flow between China and Europe is subtly shifting. The proportion of eastbound to westbound trains has increased in terms of train count, rising from 50.6% in 2016 to 81.5% in 2021. That indicates that 5 trains are leaving for Europe, whereas 4 trains are leaving for China.
The fact that freight train delivery times are getting worse cannot be disputed, nevertheless. The level of service is not higher than it was previously. Due to the epidemic, a significant amount of freight migrated from the ocean to the railway, making it difficult for many long-time customers to obtain their shipping space. Westbound trains experienced delays due to the backlog and congestion at the Chinese border ports. If nothing changes, these issues might persist during this year's busy times.
Kazakhstan, the gateway for China-Europe southern railroad is supporting the market growth.
China's exports to Kazakhstan increased significantly by 19.5% to reach USD 13.98 billion, while its imports from Kazakhstan increased significantly by 15.3% to USD 11.27 billion. In 2022, Kazakhstan and China's bilateral trade increased by 23.6% and astoundingly reached USD 31.2 billion. If the current favorable dynamic continues, the two parties may surpass their declared objective of USD 35 billion in bilateral commerce long before the target year of 2030. The increase in Kazakhstan's exports to China of agricultural products (133.7% growth), oil (USD 4.1 billion), gas (USD 1.2 billion), copper ores and concentrates (USD 2.04 billion), uranium and nuclear fuel (USD 817 million), and other ores (iron, zinc, and precious metals at just over USD 1 billion) is primarily responsible for this positive trade dynamic.
Kazakhstan received a total of USD 960 million, USD 1.85 billion, and USD 996 million in gross direct investment from China in 2020-2022. It's interesting to note that in 2022, the fourth quarter saw a half of all Chinese investment. By the end of 2022, more than 12,000 trains had through the Alashankou and Khorgos border crossings in the direction of both China and Central Asia or an average of 33 per day. Going ahead, the rail transit volume is anticipated to reach 24.5 million tons of cargo, or 1.1 million 20-foot containers, by the end of 2023; by 2025, the number is targeted to reach 30 million tons.
The main transportation infrastructure projects, including the railway line that runs through Almaty and connects to the new Bakhty border crossing in China's Western Xinjiang Region, are also being worked on by Chinese enterprises. Also, the amount of goods transported through this route nearly tripled to over 1 million tons as a result of the completion of the Trans-Caspian International Transport Route.
The Dostyk railway station, which is close to the Chinese border, is actively building terminal infrastructure, which is projected to increase the trans-shipment capacity from the 160,000 tons handled in 2021 to 480,000 thousand tons per year.
The commencement in November 2022 of the building of a new full-cycle, multi-brand vehicle plant in Almaty, with a size of 100,000 square meters and a total expenditure of USD 222 million, is an example of a substantial collaborative industrial business project. The industrial location is special since it will manufacture vehicles for three well-known Chinese automakers: Chery, Changan, and Haval.
China-Europe Rail Freight Transport Industry Overview
The China-Europe Rail Freight Transport Market is fragmented and highly competitive with the presence of major international players. The rapid increase in the number of trains between China and Europe is leading to an increase in competition within the industry. The forwarding service in the market is dominated by major global players such as DHL and DB Schenker. Other key players are China Railway Corporation, Joint-stock company United Transport and Logistics Company Eurasian Rail Alliance, Far East, Land Bridge Ltd., DSV, and many others. As a mode of transport, rail freight transport is competitive with other modes, in terms of speed and cost. Moreover, the development of the infrastructure along the routes is decreasing transport costs and times.
China-Europe Rail Freight Transport Market Leaders
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China Railway Corporation
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Deutsche Post DHL Group
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Joint-stock company United Transport and Logistics Company Eurasian Rail Alliance
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Far East Land Bridge Ltd.
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DSV
*Disclaimer: Major Players sorted in no particular order
China-Europe Rail Freight Transport Market News
June 2022: Shanghai Way-easy Supply Chain and Nurminen Logistics Plc announce a business alliance to improve logistics and rail freight services in China and Europe. As part of the business cooperation. Regarding rail connections to Europe, The Way-easy has a sizable customer base. In an environment where collaboration grows on the advantages of complementarity, the new Southern Trans-Caspian route is crucial and has future potential.
April 2022: Alstom and ENGIE formed a partnership to supply clean hydrogen to a fuel cell system for European rail freight. By the requirements of the agreement, Alstom, a leader in the development of hydrogen-powered rolling stock, is developing a hydrogen-based fuel cell system that can run electric locomotives in non-electrified areas.
China-Europe Rail Freight Transport Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Method
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS DYNAMICS
- 4.1 Current Market Scenario
- 4.2 Market Overview
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4.3 Market Dynamics
- 4.3.1 Drivers
- 4.3.2 Restraints
- 4.3.3 Opportunities
- 4.4 Value Chain / Supply Chain Analysis
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4.5 Porters 5 Force Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Technological Advancements in Rail Freight Transport
- 4.7 Overview of Global Rail Freight Transport
- 4.8 Pricing Analysis and Revenue analysis of Rail Freight Transport Market
- 4.9 Insights on Dry ports
- 4.10 Government Regulations and Initiatives
- 4.11 Regional insights on Rail Freight Transport Market
- 4.12 Impact of COVID-19 on the market
5. MARKET SEGMENTATION
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5.1 By Cargo Type
- 5.1.1 Containerized (Intermodal)
- 5.1.2 Non-containerized
- 5.1.3 Liquid Bulk
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5.2 Service Type
- 5.2.1 Transportation
- 5.2.2 Services Allied to Transportation
6. COMPETITIVE LANDSCAPE
- 6.1 Overview (Market Concentration, Major Players)
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6.2 Company Profiles (including Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements)
- 6.2.1 Deutsche Bahn AG (DB Group)
- 6.2.2 United Parcel Service Inc.
- 6.2.3 Russian Railways (RZD)
- 6.2.4 China Railway (CR) Corporation
- 6.2.5 JSC United Transport and Logistics Company
- 6.2.6 Deutsche Post DHL Group
- 6.2.7 Kerry Logistics
- 6.2.8 Far East Land Bridge Ltd
- 6.2.9 KORAIL
- 6.2.10 InterRail Group
- 6.2.11 Nunner Logistics
- 6.2.12 Kazakhstan Temir Zholy (KTZ)
- 6.2.13 Beijing Changjiu Logistics
- 6.2.14 Hellmann Worldwide Logistics
- 6.2.15 HLT International Logistics
- 6.2.16 DSV
- 6.2.17 Wuhan Han'ou International Logistics Co*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
- 8.1 Map of Railway Routes and Insights on Freight Trains between China and Europe
- 8.2 External Trade Statistics - Insights on Key Products Imported and Exported by Rail (China-Europe)
China-Europe Rail Freight Transport Industry Segmentation
Rail freight transport is the usage of railroads and trains to transport cargo on land. It can be used for transporting various kinds of goods or some of the way between the shipper and the intended destination. A complete background analysis of the China-Europe Rail Freight Transport Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.
The China-Europe Rail Freight Transport Market is Segmented by Cargo Type (Containerized, Non-Containerized, Liquid Bulk), and Service Type(Transporation, Services Allied to Transportation). The report offers the market size and forecasts in volume (thousand metric tons) and value (USD billion) for all the above segments.
| By Cargo Type | Containerized (Intermodal) |
| Non-containerized | |
| Liquid Bulk | |
| Service Type | Transportation |
| Services Allied to Transportation |
China-Europe Rail Freight Transport Market Research FAQs
How big is the China-Europe Rail Freight Transport Market?
The China-Europe Rail Freight Transport Market size is expected to reach USD 12.70 billion in 2024 and grow at a CAGR of 25.99% to reach USD 40.30 billion by 2029.
What is the current China-Europe Rail Freight Transport Market size?
In 2024, the China-Europe Rail Freight Transport Market size is expected to reach USD 12.70 billion.
Who are the key players in China-Europe Rail Freight Transport Market?
China Railway Corporation, Deutsche Post DHL Group, Joint-stock company United Transport and Logistics Company Eurasian Rail Alliance, Far East Land Bridge Ltd. and DSV are the major companies operating in the China-Europe Rail Freight Transport Market.
What years does this China-Europe Rail Freight Transport Market cover, and what was the market size in 2023?
In 2023, the China-Europe Rail Freight Transport Market size was estimated at USD 10.08 billion. The report covers the China-Europe Rail Freight Transport Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the China-Europe Rail Freight Transport Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China-Europe Rail Freight Transport Industry Report
Statistics for the 2024 China-Europe Rail Freight Transport market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. China-Europe Rail Freight Transport analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
