Chongqing - Changan Minsheng APLL Logistics Co., Ltd. (CML), Chongqing's leading automotive logistics company, has recently entered into a strategic cooperation agreement with China Merchants Energy Shipping Co., Ltd. (CMES) to accelerate the exports of Chinese automobiles.

Changan Minsheng APLL Logistics Co., Ltd. (CML) signed a strategic cooperation agreement with China Merchants Energy Shipping Co., Ltd. (Photo/Liangjiang New Area)

Resource sharing and mutual success in reaching overseas markets

Recent years have witnessed remarkable growth in Chinese auto exports, with figures soaring to over two million units in the first half of this year, marking a significant 75.7% year-on-year increase. 

Changan Automobile, a prominent player in Chongqing, is also set on expanding its global footprint, aiming to penetrate more than 90% of global markets by 2030.

However, the surging Chinese auto export market necessitates robust transportation capacity to ensure continued growth. Current deficiencies in this area risk hindering industrial progress.

"While collaboration with foreign shipping companies is prevalent, their focus on their national auto exports leads to delays, with shipping times often extending to a month," said Luo Zujun, Vice Director of Strategy and Investment Management Center of CML. This inefficiency in transportation has spurred state-owned companies like Chinese Merchants Group and China Cosco Shipping Corporation Limited to scale up their production of ro-ro vessels to address the challenge.

"While price remains a consideration, expediency in reaching overseas markets is the primary concern," Luo added. CMES also needs a long-term partner to ease the capital pressure. This results in instant cooperation between CML and CMES.

Wang Yongxin, General Manager of CMES, emphasized the significance of the partnership between CML and CMES regarding resource sharing and mutual success. The collaboration will encompass various facets, including parts container transport, automotive logistics storage service, the automotive logistics ecosystem, green logistics, joint venture cooperation, and tapping into the foreign capital market.

Chongqing-made cars are delivered to international markets via ro-ro vessels. (Photo/Liangjiang New Area)

Transport corridors give Chongqing-made cars market advantages

CML's efforts have already facilitated Changan Automobile in exporting over 100,000 vehicles since the beginning of this year, with aspirations to surpass 200,000 by year-end.

Meanwhile, developing vital transport corridors, such as the International Land-Sea Trade Corridor (ILSTC) and the Yangtze River Golden Waterway, have given Chongqing-made cars a competitive edge in the global market.

"ILSTC trims transit times by ten to twenty days compared to traditional river-sea transport, enabling more global opportunities," said Zhang Xingyan, General Manager of Overseas Division at Seres, a new energy automaker in Chongqing Liangjiang New Area.

Water transport also plays a role, exemplified by the Chongqing branch of SGMW, which has transported over 650,000 cars to international markets via the Guoyuan Port ro-ro wharf since its operation in 2014.

Liangjiang New Area aims to expedite cross-border passage construction based on ILSTC and Guoyuan Port National Logistics Hub, fostering seamless transport, logistics, and industry integration.