UTLC and Rail Cargo Group join forces on New Silk Road
Rail freight logistics company Rail Cargo Group (RCG), the rail freight division of the Österreichische Bundesbahnen (OBB) and JSC United Transport and Logistics Company (UTLC) have signed a Memorandum of Understanding (MoU) to improve rail freight connections and increase intermodal transport on the Eurasian rail freight route.
“By signing the Memorandum of Understanding with RCG, we are expanding the UTLC family network. As a result, rail links will be further networked and new products will be implemented for customers,” said Aleksei Grom, CEO of the joint company comprising of national railway companies SC Russian Railways, the National Union Belarusian Railway and Kazakhstan Temir Zholy.
UTLC was formed with the aim to increase the attractiveness of the Eurasian transit corridor for carriers in China, South Asia and Europe. As an operator, the company is responsible for regular container trains between China and Europe.
“UTLC and the Rail Cargo Group are strengthening rail logistics on the Eurasian Corridor. With this cooperation, we are taking a significant step towards continuing our internationalisation strategy as far as to Asia,” explains Thomas Kargl, CEO of Austrian-based company.
RCG has been keen to develop its presence on the rail freight links connecting Europe and Asia. Earlier this year it signed an agreement with the Russian Transcontainer to increase intermodal transport on this route. It currently offers a two-weekly service going back and forth, which it wants to expand to ten services per week in 2020. By that time, it wants to lift two million TEU in containers on the New Silk Road.