Wednesday, April 6, 2016

Iran, China and the Silk Road Train

The Yiwu-Tehran train is a significant part of Beijing’s plans for regional integration.

By Sudha Ramachandran

The Diplomat - March 30, 2016

The freight train from China that pulled into Tehran a little over a month ago created history by becoming the first train to revive the ancient Silk Route between China and Iran.
Ferrying 32 containers of cargo, it left Yiwu in China’s eastern Zhejiang province on January 2, snaking its way through Kazakhstan and Turkmenistan before entering Iran. It took the train 14 days to cover the roughly 10,399 km long journey to Tehran.
Part of the overland component of China’s One Belt, One Road (OBOR) initiative, the Yiwu-Tehran rail link slashes travel time between China’s east coast and Iran. Its arrival “in less than 14 days is unprecedented,” the head of the Iran Railways company Mohsen Pourseyyed Aqai said. Ferrying cargo via the sea from Shanghai, which lies 300 km north of Yiwu, to the Iranian port of Bandar Abbas takes 45 days in comparison.
The China-Iran “Silk Road train” will run once a month. Its frequency will increase as trade picks up. China’s economic co-operation with Iran, which deepened through the sanctions period – bilateral trade grew from $4 billion in 2003 to $53 billion in 2013 – is expected to soar in the coming years as Beijing and Tehran are eyeing stronger trade ties. In January, during the visit of Chinese President Xi Jinping to Iran, the two sides agreed to increase trade to $600 billion over the coming decade.

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