New Silk Road Rail Transport During the COVID-19 Pandemic

The year 2020 was both unique and challenging due to the rapid spread of COVID-19. The effects of the pandemic were visible across nearly every industry. However, for rail transport on the New Silk Road, it became a record-breaking year in terms of transported cargo volume.

As a result, rail freight gained significant importance as an alternative to other transport modes and demonstrated its resilience during global disruptions.

New Silk Road Rail Transport – record growth in 2020

The year started positively for the rail industry. However, the situation changed dramatically when China decided to close Wuhan and suspend rail operations from the region at the turn of January and February.

Initially, a reduction in the number of departing trains was expected. Nevertheless, the impact of the pandemic on other means of transport ultimately benefited rail services.

Growth in China–Europe–China rail transport

According to data provided by UTLC ERA, transit transport on the China – Europe – China route increased by 64% compared to 2019.

The growth included:

• More than 45% increase in export to China.
• More than 77% increase in import from China to Europe.

Furthermore, the increase in exports was supported by Russia’s decision to allow the transit of products previously covered by sanctions through its territory.

Therefore, rail transport became an even more attractive solution for international trade between Asia and Europe.

Container shortages and challenges for rail transport

Despite the significant growth in rail freight, the transport market faced several major challenges.

Limited availability of containers

The most significant issue was the limited availability of containers.

The problem intensified from October 2020, resulting in:

• Freight prices increasing by up to 264%.
• Container leasing costs in China increasing by approximately USD 1,500 (+287%).

Reasons behind the container shortage

Several factors contributed to this situation:

• The trade imbalance between China and Europe.
• The closure or significant limitation of economic activity across many European countries during the first half of 2020.
• The cancellation of most orders for new containers.
• A significant slowdown in air transport.
• The transfer of cargo volumes from air transport to rail transport.

Consequently, demand for rail services increased while container availability remained limited.

Forecasts for New Silk Road rail transport

The future outlook for rail transport remains highly optimistic.

The importance of Malaszewicze

Currently, more than 90% of imported goods are transshipped in Malaszewicze.

Unfortunately, the operational capacity of this logistics hub is not sufficient to meet growing demand.

According to the Logistics Performance Index report, Poland is currently ranked 17th in Europe.

Malaszewicze Logistics Park development

The Polish government plans to adopt a program for the construction of the Malaszewicze Logistics Park.

The investment is expected to improve operational efficiency by enabling the handling of longer and heavier trains.

Current infrastructure parameters:

• Maximum train length: 750 meters.
• Axle load: 22.5 tons.

After reconstruction:

• Train length will increase to 1,050 meters.
• Axle load will increase to 25 tons.

In addition, plans include:

• Reconstruction of the track layout.
• Modernization of the overhead contact line.
• Upgrades to traffic control systems.

The planned works are expected to begin in early 2023 and finish in mid-2026.

As a result, Poland may strengthen its position as one of the most important logistics gateways between Europe and Asia.

Real Logistics Poland and the development of New Silk Road services

Real Logistics Poland also experienced the impact of the changing transport market.

Growing demand for rail freight services

Being an expert in New Silk Road rail transport helped the company not only navigate the difficult period of COVID-19 but also achieve strong financial results.

At the same time, demand increased for complementary services, including:

• Road transportation.
• Warehousing.
• Customs agency services.

This growth enabled the company to further improve its service offering and better support a wide range of business partners.

Popular rail LCL services

Our regular rail LCL services:

• Chengdu – Warsaw
• Lodz – Chengdu

became increasingly popular because they offered an effective alternative to sea freight.

Many companies used rail transport for the first time and subsequently continued to choose this solution for their supply chains.

Future of New Silk Road rail transport

The strong performance of rail transport during the pandemic confirmed its growing importance in international logistics.

Moreover, increasing infrastructure investments and growing market demand continue to support the sector’s expansion.

As a result, we expect the continued rapid development of New Silk Road rail transport, not only through Malaszewicze but also through Slawkow in the coming years.

The experience gained during COVID-19 clearly demonstrated that rail freight can provide a reliable, flexible, and efficient transport solution connecting Europe and China.