Source:
https://scmp.com/presented/business/topics/germany-country-report/article/1842479/logistics-solutions-spur-european
Business

Logistics solutions spur European-China trade

Discovery Reports

Updated: 5:09pm, 23 Mar, 2016

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President Xi Jinping visited the Port of Duisburg in Germany last year and was greeted by duisport CEO Erich Staake.

Logistics and business movement in and around the Port of Duisburg in Germany is an accelerator for key economic developments in the export and import industry. As the world's largest inland port, duisport is home to more than 300 companies that execute regional and international trade on a daily basis. 

Managing the gateway to European markets is no easy feat, but thanks to duisport Group's logistics management expertise and extensive networking experience, the trimodal logistics hub emerged as an essential connecting point between producers and customers. Linking international markets via water, rail and road networks, duisport drives the efficient and environmentally friendly flow of goods regionally and globally.

Duisport is the only port in Europe offering several transcontinental rail links to China, including the latest freight rail route which connects Duisburg to the Chinese industrial metropolis of Chongqing. This expansion prompted President Xi Jinping's visit to duisport last year, underlining the importance of Sino-German trade relations.

"It's the new 'Silk Road'," says Erich Staake, CEO of duisport, the port's holding and management company. "This train connection is twice as fast as travel on the sea route, and a lot cheaper than air freight. It is proof that we can overcome any distance, no matter how far, if we create connections that bring benefits to both sides."

Developments in Germany's vehicle manufacturing industry have significantly contributed to the expansion of trade between Duisburg and China. Since August last year, finished vehicles from top German manufacturers are being transported by rail to Chongqing on a regular basis.

In addition, the premium carmaker Audi located its largest completely knocked down (CKD) logistics centre in Duisburg in 2013. Partnering with Audi, duisport invested Euro25 million (HK$214.5 million) into a 100,000-square-metre site and a 53,000-square-metre building complex. Around 800,000 cubic metres of Audi car components are packed at these premises and transported to China, India and Mexico yearly. The parts are shipped to international ports via duisport's multimodal transport solutions, doing away with 13,000 road trips annually.

Last year, Audi's parent company, Volkswagen, also located its logistics centre within the Port of Duisburg. The 24,000-square-metre CKD centre uses duisport's logistics solutions to supply spare parts to Volkswagen's production locations worldwide.

"Our full-service approach of combining tailor-made sites with flexible transport and logistics services strengthens Duisburg's foothold as a centre of excellence for the automotive industry and as a growth driver for global trade," Staake says.