One of the world’s longest railways — a “modern-day silk road” — covers about 11,000km en route from the Chinese megacity of Chongqing to Duisburg, a key commercial hub in western Germany.
On Saturday, as part of his landmark visit to Germany, Chinese President Xi Jinping (習近平) visited the last stop on the “Yuxinou” (渝新歐) rail line, an industrial feat that promises to revolutionize transport between Europe and Asia.
Duisburg is a steelmaking town of about half a million on the confluence of the Rhine and Ruhr rivers that boasts the world’s biggest inland port and is one of Germany’s most important transport and commercial hubs.
Photo: AFP
Despite the vast distances between them, it takes just 16 days for trains to travel to Duisburg from Chongqing, a sprawling metropolitan symbol of rising China with a population of more than 30 million.
Xi, accompanied by a large Chinese delegation and German Federal Minister of Economics and Energy and Vice Chancellor Sigmar Gabriel, ceremoniously welcomed a freight train crammed with laptops and electronics after it completed its journey through Central Asia, Russia, Belarus and Poland.
Set up in 2011 by a group of rail companies, the Yuxinou is just 2,000km short of the world’s longest rail line that links Germany to Shanghai. It has shaved more than 20 days off the sea route.
The route is particularly useful for Chongqing — home to vast car parts and IT factories — since it lies 1,500km from China’s main seaports.
“The value of this rail link, known in China as the ‘new silk road,’ is more than just symbolic,” German Port of Duisburg spokesman Julian Boecker told reporters.
“It has found itself a position in the market and now operates up to three weekly services,” he said.
Yet one of the biggest challenges will be to boost traffic in both directions to make it more profitable. It is not uncommon for the Yuxinou trains, which can transport as many as 50 containers, to be full when they arrive in Duisburg, but empty when they return to China.
“At the moment, the amount of goods traveling from China to Europe is much larger than the other way round. That’s a problem,” market research group SCI Verkehr director Maria Leenen said.
It was sea transport that gradually supplanted the historic Silk Road trade route linking Asia with Europe centuries ago.
Sea transport still accounts for more than 95 percent of goods trading between the two regions, said Burkhard Lemper of the logistics consultants ISL.
Rail’s share of the market remains tiny, and for now, the Yuxinou link only complements existing transport systems.
Yet “rail is twice as fast as sea transport and twice as cheap as air freight,” said Erich Staake, head of the company that operates the Port of Duisburg.
For Leenen, “both sides benefit” from the link.
“Europe can meet a sudden surge in demand in industry or trade, say in textiles, while China can reach its markets more rapidly,” she said.
The link provides a welcome transport connection and gateway for Chinese provinces situated deep inside the country.
“It’s still early days yet for this mode of transport, but it could have a promising future if the conditions are right, notably in terms of safety and security, punctuality and a stable political situation,” Leenen said.
Other electronics companies, such as Foxconn (富士康) of Taiwan which supplies Apple Inc, or computer giant Acer (宏碁), as well as car parts suppliers and machine-tool makers, all have factories in Chongqing.
The Port of Duisburg hopes that the importance of the rail link will increase after Xi’s visit.
“We’re in negotiations with companies, such as automakers, on a possible expansion of the service,” Boecker said.
“There are people who aren’t aware that it even exists,” he said. “We hope to increase customers in both directions.”
China is Germany’s top trade partner in Asia, while Germany is China’s leading European partner. Bilateral trade exceeded US$161.5 billion last year.
Apple Inc has closed in on an agreement with OpenAI to use the start-up’s technology on the iPhone, part of a broader push to bring artificial intelligence (AI) features to its devices, people familiar with the matter said. The two sides have been finalizing terms for a pact to use ChatGPT features in Apple’s iOS 18, the next iPhone operating system, said the people, who asked not to be identified because the situation is private. Apple also has held talks with Alphabet Inc’s Google about licensing its Gemini chatbot. Those discussions have not led to an agreement, but are ongoing. An OpenAI
INSATIABLE: Almost all AI innovators are working with the chipmaker to address the rapidly growing AI-related demand for energy-efficient computing power, the CEO said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported about 60 percent annual growth in revenue for last month, benefiting from rapidly growing demand for artificial intelligence (AI) and high-performance computing applications. Revenue last month expanded to NT$236.02 billion (US$7.28 billion), compared with NT$147.9 billion in April last year, the second-highest level in company history, TSMC said in a statement. On a monthly basis, revenue surged 20.9 percent, from NT$195.21 billion in March. As AI-related applications continue to show strong growth, TSMC expects revenue to expand about 27.6 percent year-on-year during the current quarter to between US$19.6 billion and US$20.4 billion. That would
‘FULL SUPPORT’: Kumamoto Governor Takashi Kimura said he hopes more companies would settle in the prefecture to create an area similar to Taiwan’s Hsinchu Science Park The newly elected governor of Japan’s Kumamoto Prefecture said he is ready to ensure wide-ranging support to woo Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to build its third Japanese chip factory there. Concerns of groundwater shortages when TSMC’s two plants begin operations in the prefecture’s Kikuyo have spurred discussions about the possibility of tapping unused dam water, Kumamoto Governor Takashi Kimura said in an interview on Saturday. While Kimura said talks about a third plant have yet to occur, Bloomberg had reported TSMC is already considering its third Japanese fab — also in Kumamoto — which would make more advanced chips. “We are
ASML Holding NV’s new advanced chip machines have a daunting price tag, said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), one of the Dutch company’s biggest clients. “The cost is very high,” TSMC senior vice president Kevin Zhang (張曉強) said at a technology symposium in Amsterdam on Tuesday, referring to ASML’s latest system known as high-NA extreme ultraviolet (EUV). “I like the high-NA EUV’s capability, but I don’t like the sticker price,” Zhang said. ASML’s new chip machine can imprint semiconductors with lines that are just 8 nanometers thick — 1.7 times smaller than the previous generation. The machines cost 350 million euros (US$378 million)