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3 to 5 times faster than sea transportation.
in China and Europe
UTLC was registered by the Russian, Belarusian, and Kazakhstan National Railways on November 13, 2014. The company was established to develop the transit potential and to increase traffic volumes along the East-West axis using the railway networks of the member countries by implementing high-tech logistics services that require an aligned policy to be adopted by railways and regulatory authorities in the 1,520 mm gauge territory.
The Meeting of Shareholders of the United Transportation and Logistics Company (UTLC) elected First Vice President Alexey Grom as the Company President.
Effective alignment of the Silk Road Economic Belt with the Eurasian Economic Union remained a priority for UTLC. In 2017, the company’s management proposed a number of initiatives, including those at the top management level, to address the issues that facilitate optimization of the transportation and logistics processes aimed at creating a positive image and enhancing cargo owners’ loyalty to Trans-Eurasian rail transportation.
In 2018, Vladimir Putin, President of Russia, announced his May Decrees, giving new impetus to Russia’s key industries. One of the highlights in the President’s announcement was the development of the West-East and North-South transport corridors for cargo delivery, including shorter time of container traffic by rail, and a fourfold increase in the rail transit container traffic by 2024.
At the same time, the President of Kazakhstan outlined the strategic goals for development of transit, infrastructure, and cooperation with the nearest neighbors, specifically the EAEU states. The strategy pursued by the Republic of Belarus, which was repeatedly emphasized by President Alexander Lukashenko, also envisages multiple development areas connected with transit, since Belarus serves as a connecting link between Europe and the countries of the Former Soviet Union.
The Company took a strong lead in the Eurasian rail transit traffic market and continued with its record-breaking performance in terms of both volumes and quality. At the end of 2019, the container traffic volume in UTLC ERA services exceeded 333,000 TEUs. One third of the journey to “One Million Containers” is completed.
Against the background of the limitations affecting other means of transport, consignors turned to the rail transport, which boosted the container traffic development. The traditional role of railway transport in the global supply chains as an addition to sea transport has changed.
The breakthrough growth of the rail container transit continued in 2021 with its development established as a strategic objective of UTLC ERA. The traffic volume increase and the cargo range and service geography expansion were successfully achieved.
The Company made up 82% of the total container transit volume in the China–Europe–China service in 2021.
Being in great demand, China-Europe-China transit transportation still remains the key route in UTLC ERA services. However, in 2022 UTLC ERA expanded its geographical scope and actively developed export transportation services from Belarus and Russia to China as well as import transportation services from China to Russia.
Every year, the EEU countries increasingly focus on development of integration projects. JSC United Transport and Logistics Company – Eurasian Rail Alliance is a unique example of successful integration in logistics. The company was founded on a parity basis by the railway administrations of Kazakhstan, Russia and Belarus to develop the transit potential and increase the traffic volumes in the East-West axis using the railway networks of the member countries by implementation of high-tech logistic services that require an aligned policy to be adopted by railways and regulatory authorities in the 1,520 mm track gauge regions.
In 2016, our JV started its operations as a separate and independent business unit in the container traffic market. In that year, the shareholders agreed and approved the company’s key development policies and strategies.
The traffic volume in the JSC UTLC ERA transit corridor via Kazakhstan, Russia and Belarus has grown almost 20-fold over the past years. From 2016 to 2021, the average annual freight flow in the company’s services grew approximately by 47%. In many ways, our company has become more than just a positive example or a benchmark; it has also set up the industry standards for other corridors, which are currently implementing the technologies that were first used in our services, such as the train length and fill rate, dual freight operations in the border infrastructure, digitalization of logistic processes, or development of additional directions to diversify freight flows and ensure ample reserve capacities for growing traffic volumes.
Effective implementation of the connection between the Silk Road Economic Belt and the Eurasian Economic Union remains a priority for UTLC ERA, so we are proceeding with a number of projects aimed, among other things, at creating a positive image and enhancing freight owners’ loyalty to Trans-Eurasian rail transportation.
It is crucial for all of us to be ready for further change, to remain flexible and open to our customers, to facilitate access to our services, including their digitalization, thereby boosting the process effectiveness for all market players.
We need to join our efforts to pursue opportunities, cooperate, communicate and actively interact, as success always depends on the degree of integration at all levels, be it people, companies or countries.