Bluewell International Supply Chain Management (Guangdong) Co., Ltd

Long term Logistics seized the new opportunity of the "the Belt and Road" development, successfully signed the "Volvo Special Train Project", and expanded the export of high-end vehicles. This special train is the first vehicle logistics special train between China and Europe.

On June 7th, British media reported that China's Beijing Changjiu Logistics Co., Ltd. announced on the evening of the 5th that it had signed a strategic cooperation agreement with the Belgian Zeebrurg Port Authority to jointly promote the special train project from Daqing, Heilongjiang, China to Zeebrurg. This special train will serve Volvo's export of complete vehicles, making it the first car logistics special train between China and Europe.

According to a report by Reuters on June 6th, the announcement shows that the China Europe special train initiated by Long Term Logistics has 4-6 trains per week, with 300 trains per year. It plans to transport 12000 new cars and a cargo value of 600 million euros this year. Zeebrugge Port will be responsible for coordinating with the Belgian Customs Authority, providing green customs channel treatment such as delayed payment of tariffs and value-added tax, implementing minimum inspection rates and procedures, certifying EU bonded warehouses, and providing support in finding return goods.

As previously mentioned by Chairman Bo Shijiu, Volvo has settled in Daqing with the world's most advanced SPA scalable architecture, while Longevity Logistics has tailored a logistics solution for exporting to Europe for the Volvo project. Through the China Europe freight train, the first batch of Chinese made Volvo S90 sedans arrived at the distribution center of Zeebrugge Port in Belgium from Heilongjiang. Volvo has become the first car company to sell Chinese made cars to Europe through railway transportation, greatly promoting Volvo's response speed to European market demand and facilitating further market development for Chinese manufacturing in Europe. The announcement stated that Volvo Cars has confirmed in March that the German subsidiary of Longevity Logistics has won the bid for a freight transportation service agreement to provide export transportation services for Volvo. After Zhejiang Geely Holding Group acquired Volvo Cars in 2010, Volvo increased its production base layout in China, including establishing a vehicle manufacturing base in Daqing, an engine manufacturing base in Zhangjiakou, a Chinese research and development base in Shanghai, and a vehicle manufacturing base in Chengdu. The planned annual production capacity of the first phase of Daqing Base is 80000 vehicles.

Longevity Logistics is the largest third-party automotive logistics company in China, transporting over 3 million vehicles last year.

The reporter learned from Changjiu Logistics that on June 2 local time, Mr. Bo Shijiu, the chairman of Beijing Changjiu Logistics Co., Ltd., and Mr. Joachim Kernsey, the chairman of Zebruges Port, signed a contract for projects related to the "the Belt and Road".

According to the project cooperation agreement, Long Term Logistics will establish a "China Europe Automotive Logistics Center" at the Zeebrugge Port in Belgium, based on the "Heilongjiang Belgium" China Europe special train, to serve the transportation, warehousing, distribution and other related businesses of automobiles and parts between China and Europe.

The "Silk Road Zeebrugge Center" is jointly initiated by the Belgian Zeebrugge Port, China Ocean Shipping Group, and China Minmetals Group. It is located in the core area of Western Europe, close to offshore and Shenzhen ports, and directly connects to the European market through railways, highways, barges, and feeder transportation, covering 250 million consumers within a 700 kilometer hinterland. This region is the wealthiest area in Europe, representing 20% of the EU's territory, 40% of its population, and 50% of its gross domestic product. 60% of purchasing power within the EU is within a radius of 500 kilometers centered around Belgium.

The implementation of the "Volvo Special Train Project" is a major opportunity for Long Term Logistics to expand its high-end automotive vehicle and component import and export business, and also a major breakthrough for Chinese national brand cars to go global. At present, the import and export of auto parts enjoy lower tariffs compared with the import and export of complete vehicles. Relying on the production capacity cooperation of the "the Belt and Road", Chinese auto manufacturers are expected to invest and set up production lines overseas to export auto parts to sales countries, which will bring huge prospects for logistics demand.

In response to the "the Belt and Road" initiative, Long Term Logistics has vigorously developed international rail freight transport through its holding subsidiary, Harrow International Logistics Co., Ltd. After the opening of the Harbin Europe freight train on June 13, 2015 and the Harbin Russia freight train on February 27, 2016, the "Volvo Special Train Project" was officially launched on May 13, 2017. The long-term logistics "4+1" European strategic layout (centered on Germany, a comprehensive international railway service system from China to Eastern Europe, Western Europe, Northern Europe, and Southern Europe) is taking shape.