UTLC ERA presents cooperation initiative with European partners and the ERAI transit index at SiTL 2019 in Paris

JSC United Transport and Logistics Company – Eurasian Railway Alliance (UTLC ERA) president Alexey Grom, speaking to representatives of the business community and the Media at the 36th International Exhibition of Transport and Logistics in Paris, France, stressed the need for increased cooperation with European carriers and presented the Eurasian Rail Alliance Index (ERAI).


The potential of increased rail transit on the New Silk Road is high: in 2018 the volume of container transit traffic between Europe and China increased by about a third compared with 2017, and amounted to 370 thousand TEU in both directions. Today, when travel time is reduced due to the increase in speed, and the volume of railway transit along the Eurasian corridor is increasing every year, UTLC ERA, which carries out 76% of all container traffic on the 1520 mm railway gauge is striving to create a network of workable partnerships in Europe. With this aim the company has presented the #UE4EU’ - UTLC ERA for European Union initiative at the Exhibition of Transport and Logistics in Paris, aiming to develop long-term relations with European transport and logistics companies operating the 1435 mm railway gauge. “It is necessary to find a common language, set common goals and build a road map of cooperation,” — said Alexey Grom, UTLC ERA president.

Rail transit traffic on the China-Europe route and in the opposite direction became competitive largely due to the high speed of delivery and optimal service tariffs. According to Alexey Grom, these two advantages are clearly illustrated by the value of the ERAI index. The main goal pursued by the company in developing the index is to increase customer awareness of the cost of rail transit along the 1520 gauge, and in the future to use the index when negotiating tariffs with logistics companies and shippers from Eurasia. The value of the ERAI index depends on the level of infrastructure tariffs of carriers, the speed of cargo delivery by rail, the capacity of infrastructure as well as a number of other indicators. Using the Index a shipper will be able to independently calculate China-Europe transportation cost online and decide on a preferred means of cargo transport.

The presentation of the ERAI index in France was preceded by international recognition of the increased importance of Eurasian rail transit: the ERAI index was included in the February issue of the Sea and Air Shipper Insight report, prepared by Drewry, the leading independent provider of research and consulting services to the maritime and shipping industry. The document compared the ERAI index with the global Drewry World Container Index which presents the cost of shipping, and concluded that the price of rail transportation is less prone to fluctuations than the price of delivery by sea.

The Eurasian Rail Alliance Index was developed jointly by UTLC ERA and the INFRAONE consulting company. The ERAI Index shows consignors the indicative cost of rail transit services on the 1520 mm railway gauge.

The SiTL 2019, Semaine de l'innovation Transport & Logistique, is held at Port de Versailles in Paris, one of the largest exhibition centers in Europe, and is a large-scale specialized annual event in the field of transport and logistics for French and European shippers. In 2019 about 600 exhibitors from fifty countries took part in the event, while the share of international companies on a platform with stands occupied more than 30%.