Russian logistics company FESCO has signed agreements with five Chinese logistics companies. The agreements, by and large, concern rail freight.
FESCO has entered into agreements with five Chinese logistics companies. The Russian company signed an agreement with Weisa International Logistics Group, in which the two companies agree to work together for rail freight optimisation on the Russian-Chinese border.
With HAO International Logistics, FESCO plans to develop container transportation via rail between Russia and the Chinese city of Harbin and its surroundings. Together, the companies will seek to broaden the base of freight shippers between the two countries.
The agreements with Qingdao East Venture Logistics, Neptune Logistics and Kunrong International Trade aim at establishing additional business contacts in Russia and China, starting additional trade routes between various cities in both countries, and lastly, finding additional trade volumes to be exchanged.
Reorientation of trade
The agreements, signed at Russia’s transport exposition TransRussia 2024, come amid an effort by Russia to reorient its trade flows eastward. Western sanctions have forced the country to find replacements for lost trade with the West. Russian efforts to trade more with China have put significant strain on its railway infrastructure in the Far East region.
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