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GLOBALTRUCK opens new cargo route from Asia to Europe

Public Joint Stock Company “GLOBALTRUCK MANAGEMENT” (MOEX: GTRK, Bloomberg: GTRK:RM, hereinafter  Globaltruck), one of the largest FTL-trucking companies in Russia and the leader in the Ural and Siberian markets, today announces the start of international rally and test cargo run between Russia and China on route from Dalian to Novosibirsk. The project is coordinated by Rosavtotrans (Agency of Automobile Transport of the Ministry of Transport of the Russian Federation).  

The cargo run of two Globaltruck refrigerators and three Chinese operators’ trucks officially starts on May 18 from Dalian (China) and arrives at the unloading destination in Novosibirsk (Russia) on May 28. The official closing ceremony of the rally will be held on May 29.  

With this test cargo run Globaltruck will deliver a load of fruits and vegetables to Russia. For the first time the cargo will be picked up in the city of Dalian, located 1,800 km from the Russian-Chinese border. Before the official start of the rally, Globaltruck refrigerators delivered a load of Russian ice cream to China, thus demonstrating the key advantage of road transport – door-to-door transportation – and ample capacity of modern refrigerators, including transportation of products with different temperature regimes and telematic control. 

This rally is a result of a series of negotiations between the Russian and the Chinese transportation ministries. In March 2018, participants of the working meeting on international road transport between the Russian Federation and the PRC initialled the draft of the new Agreement on international road transport between the Government of the Russian Federation and the Government of the People's Republic of China. The agreement is expected to become a real breakthrough in automotive cargo transport between the two countries as it will allow deliveries between any cities in Russia and China within the agreed limits of cargo volumes instead of the current regime of issuing single permits for each delivery route. 

Under the current regulations trucking operators actually can only deliver export-import goods to the border area, where the goods are reloaded on the trucks of the recipient country. The document, which is expected to be signed in 2018, will allow direct deliveries from any city in Russia to any city in China, which will significantly increase the speed of services, which is crucial for perishable and frozen goods.  

In future, direct international road transportation will become a competitive edge for Russian exporters and importers interested in expanding their presence in China. The new agreement will increase Russia’s transport system competitiveness in the global market. 

According to the Russian Federal Customs Service data, the cargo turnover between Russia and China in 2017 increased by 31.55% compared to 2016 and amounted to 86.9 billion US dollars. The share of China in the Russian foreign trade in 2017 was 14.9% against 14.1% in 2016, which makes China Russia’s leading trade partner. Against this background, the commercial road transport segment has a significant growth potential.  

Aleksandr Eliseev, Globaltruck Co-Founder and CEO, said: 

"We are very pleased that Globaltruck is taking part in such an important project, marking the beginning of a new stage in the development of freight transport between Russia and China. 

As the largest FTL-trucking company in the Urals and Siberia, we commend the qualitative changes in bilateral and transit road transport between Russia and China. The freight transport market in this area has a great potential for growth. If the new intergovernmental agreement is signed, de jure there will be an opportunity to perform transportations deep into the territories of two countries, which will open new horizons for the development of our business."