Chongqing - On July 19, a shipment of chrome ore from South Africa arrived at the Chongqing Guoyuan Port National Logistics Hub. Transported via the New International Land-Sea Trade Corridor (ILSTC), this shipment highlights the growing efficiency of trade routes connecting Africa and China’s western regions.

Chongqing Port Customs ensures fast customs clearance of imported chrome ore. (Photo/Chongqing Customs)

The ILSTC, now extending to Africa, has played a pivotal role in boosting China-Africa trade. In 2023, trade volume between the two regions reached a record $282.1 billion. The corridor transforms Chongqing into a critical hub for international trade, offering faster and more efficient transport options.

Accelerated journey from South Africa to Chongqing

Chrome ore, essential for producing stainless steel and special alloy steels, is a vital raw material in everyday products. While global reserves exceed 12 billion tons, the largest deposits are in South Africa, which holds 5.5 billion tons, about half of the world’s total. As China’s economy grows, so does its demand for chrome ore, with imports reaching 18.33 million tons in 2023, mostly from South Africa.

Previously, chrome ore shipments from South Africa to Chongqing relied on a time-consuming river-sea combined route involving transport to Shanghai Port and then up the Yangtze River. This process was lengthy, costly, and subject to delays. The ILSTC, however, has reduced transit time by 20 days, providing a more efficient alternative.

Streamlined customs procedures

This shipment also marks the successful implementation of Chongqing’s pilot project for the “Sea-Rail Intermodal Containerized Chrome Ore Inspection and Supervision Optimization Model.” Traditionally, imported chrome ore underwent multiple inspection stages at Chinese ports, leading to delays and higher costs. In response to business demands, Chongqing Customs launched a pilot to streamline this process, allowing direct inspection at the destination port. 

After extensive coordination among various stakeholders, including customs, railways, and ports, the General Administration of Customs approved the pilot project last year. This initiative has significantly reduced transit times and costs, saving companies over 1,700 yuan per standard container. The program has since been expanded to four companies in Chongqing, further enhancing import efficiency.

Policy innovation reduces costs

In addition to streamlining customs procedures, Chongqing Customs has introduced the “ILSTC Rail-Sea Intermodal Freight Deduction Policy.” This policy reduces inland rail transportation costs, offering substantial savings for companies importing chrome ore.

Last October, the second batch of chrome ore imported via this corridor benefited from the policy, with Chongqing Port Customs confirming that 87,400 yuan of rail freight was excluded from the taxable value of the goods. This policy has resulted in significant cost savings, as noted by Zhang Xi, a director for the trade department at the Chongqing Zhuoyue Industrial Development Co., Ltd., who reported a tax reduction of 11,362 yuan for the latest shipment.

This policy is especially beneficial given the low unit value and high transportation costs of bulk commodities like chrome ore. As of March, the policy’s benefits have been extended to other minerals imported from South Africa, including lithium ore.

The ILSTC's success and associated policies strengthen Chongqing’s role as a key gateway for international trade. This corridor is poised to drive further economic growth in Chongqing and western China, fostering deeper economic ties between China and Africa and supporting the region’s development as a significant player in global trade.

(Zhou Ying, a Chongqing Daily reporter, contributed to this report's Chinese version.)