Sweden based Volvo Cars recently announced it has exported the first consignment of China-built cars to Europe by train. It has become the first car maker in the world to export China-made cars to Europe by rail freight, via the China’s new ‘One Belt, One Road’ trade initiative.
The Volvo cars, made in China, have been exported to Belgium by the China-Europe freight train route. The route reduces journey time by two thirds compared with sea freight.
Volvo was the first Western carmaker to export a premium China-made car to the USA in 2015. In November 2016, they began making high-end versions of their premium model in Daqing for global exports. Each Volvo-dedicated freight train carries around 225 Volvo cars.,
The freight train connection ties Volvo’s manufacturing and logistics strategy to the trade flows between China and Europe. In addition to reduced transit times, the train route also reduces environmental impact of logistics operations. Rail freight reduces CO2 emissions per tonne/km by a third compared with sea freight.