5 Jun 2023 15:20

Russia begins regular grain shipments to China via Zabaikalsky Grain Terminal

CHITA. June 5 (Interfax) - The Zabaikalsky Grain Terminal, part of the New Land Grain Corridor Group of Companies, has started regular shipments of grain to China, the press service of the Russian Ministry for the Development of the Far East reported.

The first shipment of soybeans was supplied under a contract between the EPT Production and Export Company (also part of the New Land Grain Corridor Group) and the China ChengTong State Corporation.

The report also says that 16 silos for storing grain crops, each with a height of 27 meters and a volume of 5,000 tonnes, have been built at the terminal. A fleet of locomotives and special equipment has been created, principal technological equipment has been installed, including conveyors, automation and a dust suppression system, and a laboratory has been equipped to test grain quality.

The construction of broad and narrow gauge railway tracks (1520 mm and 1435 mm respectively) at the approaches to the terminal has been completed. This will ensure the through passage of trains and eliminate the main obstacle to increasing the export of grain cargo, which was the discrepancy between Russian and Chinese railway standards, the press service said.

"The successful delivery of the first shipment of cargo allows us to be sure we will fulfill our task of increasing the volume of exports of grains, legumes and oilseeds with minimal logistics costs," Karen Ovsepyan, General Director of the Zabaikalsky Grain Terminal LLC, said, as quoted in the release.

Earlier it was reported that Russian President Vladimir Putin had instructed the government to consider the issue of concluding an intergovernmental agreement with China on the "New land grain corridor Russia - China" project. The instruction was given after a meeting on the development of Far Eastern cities, which took place on March 14; the deadline for implementation is October 1, 2023.

The Zabaikalsky Grain Terminal, which was launched on September 6, 2022, is a key element of the New Land Grain Corridor Russia-China project. It is the world's first specialized railway terminal and the largest grain logistics facility in Russia. Total investment in the facility is 9 billion rubles, all from private funds. The terminal resolves the issue of multi-gauge railway lines in Russia and China for the supply of grain. In addition, it provides full grain traceability.

The terminal's capacity is designed for transshipping 8 million tonnes of grain per year.

The New Land Grain Corridor Group also launched a program to build seven modernized linear elevators along the Trans-Siberian Railway with a total storage capacity of 1.4 million tonnes in the Far Eastern, Siberian and Ural Federal Districts, as well as a marine terminal in the Far East and grain hubs in Kazakhstan for the transshipment of Russian grain.