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Friday, Aug 08, 2025

Chongqing Emerges as a Global Logistics Hub Amid Expanding Trade Routes

Chongqing Emerges as a Global Logistics Hub Amid Expanding Trade Routes

The inland municipality of Chongqing is transforming into a vital logistics nexus, linking China to Central Asia and beyond through the New International Land-Sea Trade Corridor.
Chongqing, an inland municipality characterized by its mountainous terrain, is establishing itself as a crucial logistics hub, facilitating trade connections between China and various global markets.

The recent launch of a regular freight train service connecting Chongqing to Tashkent, Uzbekistan, marks a significant milestone in this transformation.

The service, which operates twice monthly, effectively reduces transportation time by 30 percent over a distance of 4,700 kilometers, enhancing Chinese businesses' capacity to engage with Central Asian markets.

This new freight train route exemplifies the integration of China's western regions into global commerce through the New International Land-Sea Trade Corridor (ILSTC).

The corridor, initiated in 2017 through collaborative efforts among provincial-level regions in western China and Southeast Asian countries, serves as a multimodal transportation network integrating rail, road, and sea systems.

As of mid-May 2023, cargo throughput via the ILSTC witnessed a remarkable increase of 72.3 percent year on year, totaling 549,600 twenty-foot equivalent units (TEUs).

In an example of this expanded logistics capacity, Changan Automobile utilized a specialized JSQ freight train to export 200 vehicles in March.

This train, featuring 29 specialized carriages designed for roll-on/roll-off loading, transported the vehicles directly to Qinzhou Port in Guangxi Zhuang Autonomous Region, facilitating subsequent shipments to Dubai.

According to officials, this dedicated logistics solution enhances efficiency, reducing transport time by over 10 percent while also lowering costs by more than 8 percent compared to conventional methods.

Furthermore, the ILSTC has proven effective in addressing perishable logistics challenges.

Tropical fruits, including durians and mangoes from Thailand and Vietnam, now reach Chinese markets more quickly and at competitive prices.

Prior to the corridor's establishment, these products had to travel over 1,600 kilometers from Shanghai, ensuring that freshness is preserved during transit.

European pharmaceutical companies have also benefitted from the ILSTC, with enhanced access to the Chinese market facilitated by the use of temperature-controlled shipping containers.

Freight transit times for these sensitive medical products have been significantly reduced to less than 20 days, a substantial improvement over maritime routes.

For ASEAN-bound shipments, the ILSTC shortens transit times by approximately 25 days compared to traditional shipping methods that rely on the Yangtze River.

This increase in efficiency is vital not only for reducing delivery times but also for enhancing the overall reliability of supply chains.

The ILSTC's impact extends to remote areas of China, creating new business opportunities.

For instance, Arctic sweet shrimp were shipped from Canada to Chongqing, where they underwent processing before being distributed to markets in Japan.

Such activities demonstrate the corridor's role in facilitating international trade opportunities even in less accessible regions.

Chongqing Customs reported that the import and export volume through the ILSTC exceeded 200 billion yuan (approximately 27.84 billion U.S. dollars) in the first quarter of the year, marking a historic growth rate of over 10 percent year on year.
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