The Vietnamese operator Traravico aims to transport around 1,500 containers a year via rail links with China, following the reduction in transit time on the route between the Chinese province of Hebei and Vietnam from over 20 days to just five to seven days. The company sees rail transport as a gateway to markets in Central Asia and Europe.
International rail freight transport between Vietnam and China is gaining ground against the backdrop of intensifying trade between the two countries, and Vietnamese operators are preparing to expand their services.
Vietnam Railway Transport JSC (Traravico), a subsidiary of the national operator Vietnam Railways Corporation, estimates that its rail services connecting with China could reach around 1,500 containers transported annually.
The company is working with Vietnamese and international partners to develop traffic, following the results achieved on the route linking the Chinese province of Hebei with Vietnam.
From over 20 days to five to seven days
The Hebei–Vietnam rail link has been operational for over a year, and one of the main advantages reported by the operator is the significant reduction in transit time.
Whereas previously goods took over 20 days to reach their destination, transit time has now been reduced to approximately five to seven days.
According to Traravico, the reduction in transit time also helps to lower logistics costs and improve the efficiency of supply chains for importers and exporters in both countries.
The company believes that international rail transport is thus becoming an increasingly important logistics corridor between Vietnam and northern China.
Vietnam has two rail gateways to China
Rail freight transport already plays an important role in Vietnam’s logistics system, particularly for large volumes, containers and long-distance shipments.
The main North–South line connects major industrial centres, ports and logistics hubs, including Song Than, Trang Bom, Dieu Tri, Da Nang, Vinh, Giap Bat and Yen Vien.
Vietnam also has international rail links with China via the border crossings Dong Dang and Lao Cai.
These connections enable Vietnamese goods to reach not only the Chinese market, but also Central Asia and Europe, via Eurasian logistics corridors.
Traravico aims to expand its services to central and southern Vietnam
The operator now intends to diversify its freight portfolio, improve services and optimise train timetables.
Traravico is also considering extending its international rail services to central and southern Vietnam, in order to attract additional freight volumes and offer exporters more direct access to connections with China.
The company is also looking to digitise its operations and, together with its partners, develop an integrated rail logistics chain, which will reduce both transport time and costs.
Against the backdrop of growing trade between Vietnam and China, the operator is thus capitalising on the advantages of rail transport over other logistics solutions: stability, competitive costs, the capacity to transport large volumes and a lower environmental impact.
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