“One Million Is Not the Limit”: Alexey Grom on a Decade of EAEU–Belt and Road Cooperation and the New Ambitions of the Eurasian Rail Corridor
An interview with the head of UTLC ERA — the key operator of Eurasian rail corridors — about ten years of EAEU–Belt and Road interaction, the advantages of rail transport, and plans for the future.
— Mr. Grom, how would you assess the current cooperation between the EAEU and the Belt and Road Initiative?
— Thank you for the question. We are almost the same age as the Belt and Road Initiative: UTLC ERA was founded in 2014, and last year we both celebrated our 10th anniversary. The results of the initiative’s development and of our company — as an integration project between Kazakhstan, Russia, and Belarus — clearly illustrate what can be achieved when such projects are aligned and reinforce each other’s growth.
Any state initiative, especially a strategic one, requires an efficient and well-structured implementation process. Those who joined forces with China and the other countries along the axis of the modern Silk Road have achieved tangible positive results. At the same time, the outlook remains even more interesting and significant.
— UTLC ERA is the key operator of the corridor transiting through Kazakhstan, Russia, and Belarus. What are the main advantages of the China–Europe railway express? What benefits does it bring to the countries along this route?
— Becoming a leader on such an important route is a challenging task. But staying in that leading position for ten years is even harder — and that’s exactly what we at UTLC ERA have managed to do. The key factor behind our success is integration with all participants, first and foremost with the People’s Republic of China.
This modern Silk Road reveals the full range of competitive advantages of rail transport: speed, reliability, safety, environmental friendliness, and — importantly — cost efficiency. Throughout the development of our project, we have proven that great results are possible, and these advantages have been clearly demonstrated along this route.
As we say in Russia, “Where the railway develops, life develops too.” Railways create growth points not only for the transport industry but also for construction, mechanical engineering, and IT. I believe that the people living along our route have already felt these benefits through higher living standards, new jobs, and access to products from distant regions.
— How would you assess the current state and potential of existing trans-Eurasian corridors?
— Like any process, transportation along trans-Eurasian corridors can be digitized and improved. I believe our corridor has enormous potential — provided that all parties involved are fully integrated and engaged.
If we look back: in 2015, we operated only 15 routes. Today, we serve almost 800 routes connecting 255 cargo-generating and cargo-absorbing locations across the continent. This geography perfectly illustrates how far we have come.
In 2016, we coined a slogan that resonated with the Chinese initiative: “One Belt, One Road, One Million.” When we first said we wanted to transport one million containers, many thought it was unrealistic. But today some market participants say that number is no longer ambitious enough. Having reached one million together, we are now planning for two, three, and perhaps even five million.
— UTLC ERA remains the only parity-based alliance of railway administrations. How do you assess the contribution of such cooperation to Eurasian transport connectivity?
— Indeed, our alliance is unique — it was established by the railway companies of Russia, Kazakhstan, and Belarus. While similar alliances exist in other transport sectors, they are rare in rail. I believe our experience can serve as a useful example for building similar companies along other transport corridors.
— Geopolitical instability has caused imbalances between eastbound and westbound train traffic. What measures does UTLC ERA take to address this?
— Imbalances between directions are almost a normal feature of global transport routes. They have always existed and will continue to do so. Nothing in today’s world is perfectly balanced. The question is how well a company can mitigate these asymmetries.
Of course, geopolitical instability does not help efficiency. One issue is that some participants in the process consider it acceptable to halt traffic without any visible reasons related to infrastructure or technology. Such irresponsible actions primarily harm the people in the affected regions — they lose jobs and income, and a key national industry stops developing.
— Apart from investment in infrastructure and terminal networks, what else helps make rail transport more attractive for shippers?
— The same qualities I’ve already mentioned: speed, safety, reliability, environmental sustainability, and competitive pricing. When I studied at the Transport University, we were taught that rail transport was always more expensive than sea freight. Today’s reality disproves that: rail is often even cheaper, especially for shipments from Southeast Asia to Europe.
I would say digital technologies are the area that truly needs active development. Alternative modes of transport already use digital bills of lading and electronic documentation. We must bring full digital integration into railway operations — and that will attract even more clients to rail.
— Does UTLC ERA cooperate with Chinese logistics platforms and state-owned companies?
— This cooperation is ongoing. First and foremost, with CRCT — our main partner for container train operations in China. We also maintain regular contact with almost all major logistics platforms, freight forwarders, and container owners. Even shipping lines show interest in combining sea and rail services with us.
Our company is a regular participant in major transport events in China — in Chengdu, Shanghai, Chongqing, and Xi’an. We are actively developing partnerships with Chinese logistics companies.
— What are the company’s plans for the near future?
— To keep doing what we love: developing transport routes between China, the EAEU countries, and the European Union. The year 2024 was a record year for us — we transported 746,000 twenty-foot equivalent containers, the highest in our history.
This year started with some challenges related to infrastructure reconstruction on our main route and certain restrictions imposed by participants in the transport process. But I am confident that we will overcome all barriers, achieve strong results, and continue our growth next year.
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