China has just launched the complete new cargo transport route “Yixin’ou” connecting Yiwu, China’s eastern wholesale capital nicknamed China Commodity City, straight to Madrid via Central Asia. The first train trip arrived last Tuesday with the 82 container train travelling 13,000 km over 21 days.

Yiwu to Madrid

The Yixin’ou rail road will take 21 days and will link Eastern China to Madrid passing through eight countries in total: China, Kazakhstan, Russia, Belarus, Poland, Germany, France and Spain

The longest China-European train line to date, this new cargo route is the ideal new Silk Road for China but also for European companies wanting to trade in China. EU-China trade is valued at over $1 billion per day and the new rail road is expected to give trade a further economic boost.

Longer than the Trans Siberian rail-road which is 9,289 km long, the new cargo line is impressive and a huge asset to inter-continental trade. It passes through eight different countries from China, Kazakhstan, Russia, Belarus, Poland, Germany, France and finally its terminus, Spain.

However, cargo must currently be transferred to different train wagons three times during the trip,  due to incompatible train gauges (Russia and Spain use broad gauge tracks), raising transport costs. The train line has reduced dependence on slow sea and costly air transport, improving transport efficiencies and reducing carbon emissions, but is still costlier than maritime transport.

Despite this, test runs of the route earlier this year up to Central Asia brought in $39 million in trade for Yiwu.

Having met Rajoy on September 26th, Chinese president XI Jinping is keen to continue forging a close relationship with Spain, with 2015 marking 10 years of Chinese-Spanish strategic partnership, he encouraged Spain to participate in the train line. Spain plans to export agricultural goods to China using the train line.

If you need help with your trade and logistical needs, please feel free to contact Spainwide on the number above or by using the contact form.