UTi Launches Two-Way China-Europe Rail Service to Provide Clients More Cost-Effective Options

UTi Worldwide Inc. (Nasdaq:UTIW), a global supply chain services and solutions provider, has launched regular, guaranteed weekly rail freight service between China and Europe to provide clients more cost-effective transport options in these markets and beyond.

The UTi “Iron Silk Road” rail service’s first link is between Harbin and Hamburg, featuring lower rates than air freight and shorter transit times than ocean freight (15 days, eastbound or westbound). Other major destinations in northern China and northern Europe, including ports, are accessible within a few days without additional on-carriage charges. The service also offers environmental and security benefits compared to air and ocean transport. UTi is offering promotional pricing through 30 September 2015 to encourage current and prospective clients to try the Iron Silk Road rail service. Interested companies should contact their local UTi office or account representative.

The service’s first runs (eastbound, 41 containers; westbound, 46 containers) included automotive equipment, consumer goods and other freight. The Iron Silk Road rail service’s kickoff ceremony was featured on China national television. Harbin is the capital of China’s northeastern Heilongjiang province, which the nation has targeted for economic development. The UTi rail service is part of a joint venture agreement with strategic partner Changjiu Logistics, the leading independent automotive logistics company in China; Harbin Railway Bureau; and Dalian Port Investment Corp. The joint venture company’s name is HAO Logistics Co., Ltd.

“We are excited to provide economical and reliable rail service between China and Europe to our clients,” said Ditlev Blicher, UTi President, Freight Forwarding. “This is only the first link in our Iron Silk Road rail service and only one of the many ways we are serving the logistics requirements of automotive, aerospace and other manufacturers.”

Blicher said that UTi also offers VMI/production logistics for automotive OEMs and Tier 1s, and aftermarket parts and accessories distribution, in China. “The establishment of HAO Logistics helps attract more investment into Heilongjiang province, and we believe it will elevate UTi’s brand awareness and penetration in the northeastern region of China as well,” he said.