Evolution of the China Railway Express in the context of policy support, trade trends, and infrastructure supply

Benard, Manuel; Yu, Runze; Pu, Wenjing Working Paper Evolution of the China Railway Express in the context of policy support, trade trends, and infrastructure supply ADBI Working Paper, No. 1434 Provided in Cooperation with: Asian Development Bank Institute (ADBI), Tokyo Suggested Citation: Benard, Manuel; Yu, Runze; Pu, Wenjing (2024) : Evolution of the China Railway Express in the context of policy support, trade trends, and infrastructure supply, ADBI Working Paper, No. 1434, Asian Development Bank Institute (ADBI), Tokyo, https://doi.org/10.56506/ARYP4840 This Version is available at: https://hdl.handle.net/10419/296826 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/3.0/igo/ ADBI Working Paper Series EVOLUTION OF THE CHINA RAILWAY EXPRESS IN THE CONTEXT OF POLICY SUPPORT, TRADE TRENDS, AND INFRASTRUCTURE SUPPLY Manuel Benard, Runze Yu, and Wenjing Pu No. 1434 March 2024 Asian Development Bank Institute The Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI’s working papers reflect initial ideas on a topic and are posted online for discussion. Some working papers may develop into other forms of publication. The Asian Development Bank refers to “China” as the People’s Republic of China. Suggested citation: Benard, M., R. Yu, and W. Pu. 2024. Evolution of the China Railway Express in the Context of Policy Support, Trade Trends, and Infrastructure Supply. ADBI Working Paper 1434. Tokyo: Asian Development Bank Institute. Available: https://doi.org/10.56506/ARYP4840 Please contact the authors for information about this paper. Email: manuel.bena[email protected], [email protected], [email protected] Manuel Benard, Runze Yu, and Wenjing Pu are senior investment operations specialists – transport at the Asian Infrastructure Investment Bank, Beijing, People’s Republic of China. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms. Discussion papers are subject to formal revision and correction before they are finalized and considered published. Asian Development Bank Institute Kasumigaseki Building, 8th Floor 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, Japan Tel: +81-3-3593-5500 Fax: +81-3-3593-5571 URL: www.adbi.org E-mail: [email protected] © 2024 Asian Development Bank Institute ADBI Working Paper 1434 M. Benard et al. Abstract This paper delves into the developmental trajectory and future prospects of China Railway (CR) Express, a containerized railway freight service between the People’s Republic of China (the PRC) and Europe, and examines the associated infrastructure investment needs for enhancing Eurasian freight transport. Since its establishment in 2011, CR Express has demonstrated remarkable growth, resilient even in the face of challenges such as the COVID19 pandemic and the onset of the Russian invasion of Ukraine. The substantial expansion of CR Express over the past decade can be partially attributed to generous subsidies and favorable policies. While it is anticipated that government subsidies will gradually be phased out, the ongoing role of favorable policies will remain pivotal in shaping the trajectory of CR Express’s future growth. Despite the dynamic evolution of the global trade landscape, the robust and steadily growing trade relationship between the PRC and Europe provides a solid foundation for CR Express to sustain its growth momentum. CR Express is also poised to capitalize on the growing demand for high-value products, including electronics, auto parts, high-end apparel, machinery, and premium furniture, as well as time-sensitive goods such as fresh produce, everyday clothing, and seasonal toys. However, the growth potential of CR Express faces impediments in the form of infrastructure limitations and operational challenges. Bottlenecks at ports, railways, and logistics hubs, coupled with issues like insufficient standardization, technical constraints, and service-related challenges, exert a negative impact on the overall efficiency and attractiveness of CR Express. In response to these constraints, concerted efforts are underway encompassing infrastructure construction and modernization initiatives, as well as the digitalization of logistics services. Investment opportunities emerge in the form of infrastructure construction and upgrades, along with the adoption of proven new technologies and digital solutions to enhance the efficiency and competitiveness of railway services. Keywords: China Railway Express, PRC–Europe trade, Eurasian freight transport, ports, railways, logistics JEL Classification: L92, F1, P45, R41, O24 ADBI Working Paper 1434 M. Benard et al. Contents 1. INTRODUCTION TO CR EXPRESS AND ITS RAPID GROWTH ............................... 1 1.1 CR Express’s Political Significance, Economic Impact, and Environmental Benefits ............................................................................. 1 1.2 Multilateral Cooperation ................................................................................... 2 1.3 Rapid Growth ................................................................................................... 4 2. POLICY SUPPORT FOR CR EXPRESS DEVELOPMENT POTENTIAL .................... 5 2.1 Inside the PRC ................................................................................................. 5 2.2 Outside the PRC .............................................................................................. 6 3. DEMAND ANALYSIS FOR CR EXPRESS DEVELOPMENT POTENTIAL ................. 6 3.1 Evolving Global Trade Landscape ................................................................... 6 3.2 PRC–EU Trade Overview ................................................................................ 7 3.3 PRC–EU Trade by Transport Mode ................................................................. 8 3.4 CR Express’s Target Freight Categories ........................................................ 10 3.5 CR Express as the Preferred Choice ............................................................. 11 3.6 Other Geographic Markets of CR Express ..................................................... 12 4. SUPPLY OF INFRASTRUCTURE FOR CR EXPRESS DEVELOPMENT POTENTIAL ................................................................................... 13 4.1 Infrastructure .................................................................................................. 13 4.2 Operations ...................................................................................................... 14 4.3 Investment Opportunities ............................................................................... 15 REFERENCES ...................................................................................................................... 17 ADBI Working Paper 1434 M. Benard et al. 1 1. INTRODUCTION TO CR EXPRESS AND ITS RAPID GROWTH 1.1 CR Express’s Political Significance, Economic Impact, and Environmental Benefits Since its establishment in 2011, China Railway (CR) Express has rapidly evolved into a dynamic cross-border containerized railway freight service linking the People’s Republic of China (hereafter referred to as “the PRC”) with Central Asia and Europe. This logistics service spans a substantial portion of the Eurasian continent, establishing itself as a globally acknowledged public logistics product. CR Express revitalized the historical Eurasia intercontinental railways and enhanced cross-border connectivity, demonstrating significant political, economic, and environmental benefits. Politically, the inception of CR Express was spearheaded by China Railway, the nation’s leading passenger and freight railroad corporation. This initiative holds significant stature as a flagship project within the PRC’s Belt and Road Initiative (BRI). CR Express serves as a pivotal platform aligned with the PRC’s strategic goal of expediting the accessibility of its inland cities. The overarching objectives include the promotion of trade facilitation, fostering cooperation, embracing openness and inclusivity, encouraging mutual learning, and fostering mutual benefit. Notably, this endeavor mirrors the PRC’s escalating commitment to engaging in international governance. Given the collaborative nature of CR Express operations across multiple countries, its development emerges as an invaluable opportunity for the PRC to play a constructive role in optimizing the global supply chain. The COVID-19 pandemic further underscored the vital role played by CR Express in stabilizing international supply chains. In particular, during a period when air and maritime transport faced substantial disruptions, CR Express proved instrumental in ensuring the timely delivery of critical protective supplies (National Development and Reform Commission (NDRC), China Railway Express Development Report 2021). Economically, CR Express is a catalyst for advancing mutual economic interests by fostering enhanced infrastructure connectivity—a precursor to prosperity. It not only deepens the business collaborations between the PRC and Europe but also plays a pivotal role in uplifting the vast inland areas of Eurasia through heightened trade opportunities. Acting as a strategic driver, CR Express accelerates hinterland development and facilitates industrial agglomeration. The economic landscape in the PRC is undergoing a transformative shift, marked by the relocation of production from coastal to central and western provinces. This shift demands an efficient intercontinental transportation mode to overcome inland bottlenecks, a role CR Express adeptly fulfills. Furthermore, CR Express directly supports the PRC’s economic evolution, aiding the transition from low value-added manufacturing to the production of higher-value goods. These goods require a delivery mode that is faster and more reliable than maritime but more cost-effective than air transportation. The railway mode, exemplified by CR Express, emerges as the preferred solution, offering reduced lead times and heightened supply chain efficiency. ADBI Working Paper 1434 M. Benard et al. 2 Beyond its transformative economic role, CR Express introduces new investment opportunities, including collaborative container-sharing initiatives and investments in logistics properties. In essence, CR Express transcends mere transportation, becoming a dynamic force shaping economic dynamics and fostering promising avenues for investment. Environmentally, rail stands out as a sustainable modal choice for moving freight between the PRC and Europe, as it emits the lowest carbon emissions when compared to maritime, air, and road transportation. This is well aligned with the green development goals advocated by both the European Union (EU) and the PRC. Additionally, CR Express’s future operations will likely involve more cold-chain logistics and digitalization, which are key driving forces for technological innovations and environmental benefits, further solidifying the railway’s role in fostering a greener future. 1.2 Multilateral Cooperation The rapid growth of CR Express has spurred collaboration among various players along the PRC–EU freight rail value chain. Within this collaborative framework, platform companies, which in the PRC are typically state-owned enterprises supported by municipal governments, assume a pivotal role (Figure 1). Figure 1: Type of Players in the PRC–EU Freight Rail Value Chain Source: AIIB analysis. Platform companies are expanding their value chain, transitioning from stop-to-stop services to comprehensive door-to-door solutions. They differentiate themselves by offering high-quality value-added services, including less than container load (LCL), cold chain, and efficient customs clearance to capture a larger market share. Emphasizing customer experience enhancement, they leverage digitalization to improve operational efficiency and establish a global network for proactive customer interaction and issue resolution. For railway companies and station operating companies, alliances are cultivated to foster multilateral cooperation and standardization. For instance, in October 2017, a joint working group on CR Express was established by the national railway companies of the PRC, Belarus, Germany, Kazakhstan, Mongolia, Poland, and the Russian Federation. Logistics companies and forwarders forge deeper collaborations with platform companies, establishing mutually beneficial relationships as both customers and service providers. They also invest in CR Express-related infrastructure, such as stations and locomotives, to facilitate business expansion. Global-leading companies like DHL, DB Schenker, and Maersk actively take part in the campaign as CR Express is widely recognized. ADBI Working Paper 1434 M. Benard et al. 3 The PRC considers CR Express strategically important. Most platform companies in the PRC are state-owned and supported by government subsidies, reflecting the semimarketized nature of CR Express. Nevertheless, national-level policies are geared toward steering the development of CR Express towards a higher degree of marketization. The relationships among the PRC’s government, China Railway, and platform companies are illustrated in Figure 2. Figure 2: Relationships among Government, China Railway, and Platform Companies * China Railway’s subcompany China Railway International Multimode Transportation Co. Ltd. (CRIMT) oversees the CR Express business. Source: AIIB analysis. National government like the NDRC and the Ministry of Transportation provides policy support and high-level guidance. Provincial governments, municipal governments, and economic development zones are the major sources of subsidies. Platform companies may be state-owned enterprises or rail operators acting on behalf of China Railway. For instance, while certain entities like the Xi’an International Hub solely provide standard stop-to-stop transportation, others such as Zhengzhou International Hub and Chongqing International Hub offer additional value-added services like door-to-door delivery and customs declaration. China Railway,1 as a state-owned enterprise, provides crucial infrastructure, traction, and wagons, and determines tariff policies. It plays a pivotal role in planning the number of freight trips in each city, processing applications from platform companies to formulate annual and monthly CR Express operational plans. Additionally, it collaborates with foreign national railway companies to synchronize operational plans. The subsidy structure and total subsidy amounts vary across different cities, with platform companies typically adopting competition-oriented pricing strategies to maintain competitiveness. Consequently, those with substantial government subsidies enjoy notable pricing advantages, thereby influencing their competitive positioning in the market. 1 The China Railway’s sub-company China Railway International Multimode Transportation Co. (CRIMT) is in charge of the CR Express business. ADBI Working Paper 1434 M. Benard et al. 4 1.3 Rapid Growth Since its inception in 2011, the CR Express market has undergone remarkable growth and is anticipated to maintain a consistent upward trajectory in the long term. As the phased reduction of subsidies is underway, CR Express is transitioning toward a more market-oriented operational model. This evolution is expected to introduce some volatility in the short term, characterized by a gradual decline in the growth rate. Nevertheless, the long-term outlook remains optimistic, driven by the persistent demand for specific products and an increasing customer acceptance. By the end of September 2023, CR Express had executed an impressive total of 78,000 trips between the PRC and Europe, transporting 7.4 million twenty-foot equivalent units (TEUs) of goods, and establishing connections with 217 cities in 25 European countries (NDRC 10 October 2023). The number of train trips soared from 17 in 2011 to 16,562 in 2022, marking a notable compound annual growth rate (CAGR) of 86%. Correspondingly, the freight volume surged from 1,000 TEUs in 2011 to 1,614,000 TEUs in 2022, reflecting a compelling CAGR of 96% (Figure 3). Figure 3: Number of Trips and Freight Volume of PRC–Europe Railway Express Freight Trains (2011–2022) TEU = Twenty-foot equivalent unit. Source: The State Council Information Office of the People’s Republic of China: The Belt and Road Initiative: A Key Pillar of the Global Community of Shared Future, October 2023 (http://www.scio.gov.cn/gxzt/dtzt/49518/ 32678/index.html [accessed 11 October 2023]). Several factors have contributed significantly to the remarkable growth of CR Express. First, favorable policy support laid the groundwork for its expansion, with government subsidies playing a crucial role in fostering a conducive market environment. Additional support, including substantial infrastructure investments and streamlined customs clearance procedures, has further propelled its rapid development. While subsidies are on a downward trend, ongoing policy support is expected to remain pivotal, diversifying to adapt to the evolving needs of CR Express. ADBI Working Paper 1434 M. Benard et al. 11 Figure 8: Target Categories for CR Express (from the PRC to EU)a EU = European Union. a High-end furniture and machineries are considered high-value cargo. Source: AIIB analysis. Fueled by a consumption upgrade, there is a surging demand from Chinese consumers for products associated with cold chain logistics, cross-border e-commerce, and other midto high-end products. Additionally, pharmaceutical products are also emerging with strong growth potential, suitable for CR Express transport. Overall, the target goods for CR Express are expected to be more diversified with more midto high-end goods, providing a strong demand base for CR Express growth. 3.5 CR Express as the Preferred Choice Based on feedback from CR Express’s customers, it’s evident that CR Express is rapidly evolving into a critical transportation channel in the Eurasian freight transport system. Even though prices are anticipated to rise in the future due to the reduction of subsidies, the demand for CR Express is unlikely to wane as long as it maintains its reputation for delivering consistently high levels of services. Our interviews with CR Express’s primary customers have highlighted the following advantages and promising prospects: Forwarders’ views on CR Express advantages: • High reliability: Despite peak season congestion in transit and loading zones, most CR Express trains adhere to their schedules reliably, remaining largely unaffected by adverse weather conditions. • Short lead time: CR Express significantly reduces lead times compared to maritime transport. ADBI Working Paper 1434 M. Benard et al. 12 • Cost efficiency: In comparison to air transport, CR Express offers a far more economical option. With subsidies in place, it can even outcompete maritime transport. This makes it an ideal choice for products less sensitive to shipping costs but in need of swift delivery. • Environmentally friendly: As a result of low-carbon environmental requirements and the economic development along its routes, some portions of CR Express are operated by European companies, such as Deutsche Bahn. With the growing acceptance of CR Express, the proportion operated by European companies is increasing. Forwarders’ expectations for the future: • Global railway leadership: While the PRC may not be as competitive in the maritime transport market, its railway system ranks as a global leader with a promising future. • Emerging supply chain channel: Eurasian rail freight transport has evolved into a vital supply chain channel. Despite its relatively smaller size currently, it is increasingly becoming a significant consideration for forwarders in their route planning. • Role of policy and market demand: Policies continue to drive the growth of CR Express, but market demand is also on the rise. Rigid demand is gradually taking shape, especially for products like machinery, electronic items, clothing, and other high-value goods. • New demand drivers: The rise of cross-border e-commerce and the need for coldchain logistics are expected to generate new demand for CR Express in the future. • Growing participation: CR Express is attracting a growing number of participants, and they are actively exploring the opportunities it presents. In summary, CR Express is on the path to becoming a key player in the global logistics landscape, driven by its impressive reliability and efficiency, as well as the evolving needs and expectations of the market and its participants. 3.6 Other Geographic Markets of CR Express Beyond the EU, the PRC also trades with ASEAN, the Russian Federation, and Central Asia. Rail transport, a key mode of transportation in the PRC’s trade with Central Asia and the Russian Federation over the last few decades, is expected to maintain a relatively stable share in these regions. However, when it comes to trade between the PRC and ASEAN, the demand for rail transport remains limited. For Central Asia, rail transport was in operation long before the emergence of CR Express and has played a pivotal role in facilitating trade with the PRC over the last few decades. Although Central Asia represents a relatively modest portion of the PRC’s total foreign trade, the trade between the PRC and Central Asia presents an upward trend with large fluctuations, and steady growth could be expected given relatively stable political climates and rapid economic growth. CR Express is well positioned to provide more services for this region. ADBI Working Paper 1434 M. Benard et al. 13 ASEAN overtook the EU as the PRC’s top trade partner in 2020 and has maintained its top position since then. However, the demand for CR Express in the PRC–ASEAN trade remains limited, as it does not offer significant advantages over sea transport. As a result, substantial growth in the short term is challenging for the PRC–ASEAN route. Future strategic directions may involve exploring multimodal transportation options to connect ASEAN with the PRC and the EU. The degree of policy support will also be a key factor in the development of the PRC–ASEAN route. 4. SUPPLY OF INFRASTRUCTURE FOR CR EXPRESS DEVELOPMENT POTENTIAL 4.1 Infrastructure The rapid expansion of CR Express has been met with infrastructure limitations and operational challenges, leading to delays and concerns about future growth. However, with comprehensive infrastructure upgrade plans and the development of standardization and digitalization, we anticipate a substantial increase in CR Express’s capacity, potentially exceeding four times the current volume over the next 10 to 20 years. Several critical infrastructure constraints have become apparent along the CR Express routes, which, when targeted for improvement, can significantly enhance capacity without necessitating substantial investments: a. Port of Belarus–Małaszewicze (Belarusian–Polish border): This bottleneck is one of the most significant, affecting nearly all CR Express routes. The Polish side processes fewer than 14 trains daily, causing peak-time delays of 5 to 10 days. While logistics providers are exploring alternative ports, these are still in their nascent stages. In 2019, the total utilization rate of all ports entering the EU stood at 24%. The introduction of additional ports could notably increase CR Express capacity. b. Overloaded railways and insufficient rolling stock supply in Central Asia and the Russian Federation: In 2020, a shortage of rolling stock in Kazakhstan and the Russian Federation resulted in block train congestions and cancellations in locations like Alatau, Horgos, and Manchuria. The Trans-Siberian Railway is close to its operational limits, with a cap of 2.5 to 3 million TEUs per year, and extreme weather conditions further complicate the situation. c. Capacity limitations in Chinese logistics hubs: Key logistics hubs in the PRC are grappling with capacity restrictions. These limitations include Xi’an (3,000 trains per year), Zhengzhou (1,800 trains per year), Chengdu (1 million TEUs per year, including domestic railways), and Wuhan (500 trains per year). To unlock the potential for CR Express to quadruple its capacity by 2040, a collaborative effort involving relevant countries, industry associations, and service providers is essential. The fourfold capacity increase is a conservative estimate, as it primarily pertains to upgrading existing, well-established routes. If new routes be developed, more capacity could be added. Examples of major improvement projects include: ADBI Working Paper 1434 M. Benard et al. 14 a. Małaszewicze Station Improvement: • Poland State Railways, a dominant railway operator, plans to expand the station, increasing daily passages from 14 to 55 by 2028. Storage capacity will rise from 2.5 million to 15+ million TEUs by 2026. • The exploration of alternative ports, such as Kaliningrad, is considered a viable option. However, their immaturity and potential sensitivity to political factors need to be taken into account. a. Railway Upgrades in Central Asia: • Kazakhstan is implementing extensive national infrastructure projects that will enable a tenfold increase in transit transport capacity by 2050. b. Exploration of the New Middle Corridor Route: • A portion of the Middle Corridor remains in its early stages of development. The BTK railway (Baku–Tbilisi–Kars), completed in 2017, presents a recent addition. The exploration of new corridors will be especially sensitive to subsidy reductions due to their high operational risks. 4.2 Operations On the operations slide, insufficient standardization, technical limitations, and managerial issues also pose challenges. a. Insufficient standardization. Different countries along the routes are required to use local customs codes, and adapting to different systems is both timeand cost-consuming. In addition, the billing of lading still lacks standardization, making it hard to develop property right and derivative functions such as proof for shipment insurance or logistics financing. Efforts for improvement include: 1) The customs clearance process has been reduced to 4 hours, 2 hours, and 1 hour respectively in the EU, the Russian Federation, and the PRC. 2) The CIM/SMGS (CIM – Uniform Rules Concerning the Contract of International Carriage of Goods by Rail; SMGS – The Agreement on International Goods Transport by Rail) consignment has been widely used in CR Express since 2017, showing the potential to remove regulatory discrepancies. 3) Some platform companies are piloting trials of logistics financing. b. Technical limitations. The target clients of CR Express, especially those in the EU, pay a lot of attention to supply chain stability and visibility. However, due to the complexity of multimode transportation, the processes still lack real-time visibility. The digitalization of rail operations is insufficient compared to other transportation modes. Online payment systems for rail are yet to be fully developed. Efforts for improvement include: The Global Positioning System (GPS) and temperature-control devices are used by some operators but not on a large scale. Meanwhile, today’s solutions focus mainly on locations, still lacking real-time information on shipment status (e.g., customs clearance, gauge conversion). c. Service issues. The service level lagged behind developed economies. Many markets alongside the routes had suboptimal logistics services, scoring particularly low in customs clearance procedures, according to the World Bank. ADBI Working Paper 1434 M. Benard et al. 15 Many believe that the congestion in Małaszewicze is caused not only by infrastructure limitations but also service issues. Efforts for improvement include: The logistics service providers are striving to improve their services. Some providers have dedicated overseas teams to deal with possible unexpected conditions. 4.3 Investment Opportunities Given the infrastructure limitations and operations challenges, there are many investment opportunities to construct, modernize, and upgrade rail infrastructure, and to adopt or develop new technologies and digital solutions. On the rail infrastructure side, investment opportunities include: a. Port • Port capacity enlargement: o Duisburg: involved in 30% of the PRC–EU trade, Duisburg Port faces space limitations, processing up to 50 trains per week (of which 35–40 are with the PRC). Expansion to 100 PRC-bound trains per week is planned. • Smart ports: o System update and best practices include optical character recognition (OCR), automated guided vehicles (AGVs), real-time navigation, etc. b. Railway • Railway capacity enlargement: o Trans-Siberian Railway: almost overloaded with a limit of 2.5 to 3 million TEUs per year. Modernization project would be in progress until 2035. o Middle Corridor: BTK Railway’s capacity is expected to grow, yet the expansion plan has been stymied by the political climate, and by public resistance in countries alongside. • Modernization: o Railway speed up: some rail lines in Europe have been in operation for a long time and possess low efficiency. Railway speed falls to only 18 km/h entering the EU. o Greenification: replace diesel with electricity powered by renewable energy, such as wind (e.g., the Netherlands) and solar (e.g., Italy, UK). On the technology side, there are also investment opportunities for digitalization, including online systems, intelligent decision-making, and information sharing. a. Online systems: • Automation: order processing has not been fully automated. Online payment is still in its early stage of development. • Real-time visibility: GPS and temperature-control devices have not been used on a large scale. Today’s solutions focus mainly on locations, lacking real-time information on shipment status (e.g., customs clearance, gauge conversion). ADBI Working Paper 1434 M. Benard et al. 16 b. Data analytics: • Predictive maintenance: using sensors to collect real-time data and identifying repair needs are in the early stage. There is also a need to centralize various measurements to make the maintenance processes more efficient. • Intelligent decision-making based on big data and AI application (e.g., smart networks and line planning, business forecasting, site selection planning, scheduling, route optimization). c. Information sharing: • One window for data delivery: establish an interconnected ecosystem and uniformly recognized data network involving all the participants (rail operators, freight forwarders, ports and terminals, customs authorities, etc.) to promote information sharing, reduce duplicated paperwork, increase bill of lading standardization, and increase efficiency. 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