China-Europe Rail Freight Transport Market Size

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.