Siberia-China Railway to Support Domestic SMEs' European Exports... Pantos and KOTRA Agreement

[Asia Economy Reporter Choi Dae-yeol] LX Pantos signed a business agreement with the Korea International Trade Association on the 8th to promote a support project for multimodal transport for small and medium-sized enterprises (SMEs) to Europe. This initiative aims to alleviate the difficulties faced by domestic SMEs in exporting to Europe due to COVID-19 and Russia's invasion of Ukraine.

Rail freight transport across the continent has recently been recognized as a way to ease logistics challenges. The cargo is first transported by sea to Russia or China, then transshipped onto freight trains locally to move by rail to Eastern Europe. The Trans-Siberian Railway (TSR) is utilized in Russia, and the Trans-China Railway (TCR) in China. Compared to maritime transport, rail transport offers shorter transit times and higher punctuality between Asia and Eastern Europe.

Under this agreement, LX Pantos and the Korea International Trade Association will secure weekly space of around 30 TEU (1 TEU equals one 20-foot container) exclusively for SMEs until the end of this year. Freight rates will also be discounted by approximately 10-15% compared to existing rates.

Using a digital logistics platform, the participation and convenience of SMEs in the support project will be enhanced. By utilizing ‘Pantos Now,’ developed by LX Pantos, users can check reservations and real-time location tracking. Lee Ha-hyung, head of LX Pantos’ rail business division, stated, "We will do our best to provide practical assistance to our SMEs struggling to secure shipping space."

This content was produced with the assistance of AI translation services.