China’s Xuanyuan Group Industrial Development has announced plans to construct a significant logistics hub in the Amur Region, located in the Far East of Russia. This announcement comes as freight turnover between the two countries has more than doubled in the past year. Hailong Xue, the CEO of Xuanyuan Group, shared this information in an interview with RT during the Eastern Economic Forum in Vladivostok.
The project, which is just one of many deals made by the Chinese industrial group with Russian investors at the forum, aims to provide equal opportunities for both Russian and Chinese companies to participate. Positioned between the city of Tongjiang in China’s Heilongjiang province and the town of Nizhneleninskoye, the logistics hub will enhance cargo transfers between Russia and China. Hailong emphasized the importance of the hub’s location in facilitating trade between the two countries, stating that cargo transfer is currently problematic due to the narrow stretch between their borders. However, with the construction of this logistics hub, Hailong estimates that freight transportation will reach an annual volume of 10 million tons. Additionally, he anticipates a fourfold increase in cargo traffic between Russia and China in the coming years.
In terms of specifics, the project envisions the construction of a storage and transportation terminal for hazardous and nonhazardous goods. These goods include liquefied natural gas (LNG), liquefied petroleum gas (LPG), aviation fuel, helium, and other technological products. The estimated cost of the project ranges from $600 to $700 million, and the cargo terminal is expected to launch in 2027.
Xuanyuan Group’s CEO expressed his enthusiasm for the project, emphasizing the positive impact it will have on the economic relations between Russia and China. This logistics hub will not only improve efficiency in cargo transfers but also create numerous employment opportunities for both Russian and Chinese workers. Furthermore, Hailong highlighted the potential for collaboration and cooperation between businesses from both countries, which will contribute to further economic growth.
The development of this logistics hub reflects the ongoing efforts to strengthen the economic ties between Russia and China. The rapid increase in freight turnover over the past year demonstrates the growing importance of trade between the two nations. Additionally, this project aligns with the broader goals of the Eastern Economic Forum in promoting investment and cooperation in the Far East region of Russia. It provides an avenue for mutually beneficial economic development and enhances the strategic partnership between Russia and China.
Overall, the construction of this logistics hub in the Far East is a significant step towards fostering stronger trade relations between Russia and China. As freight traffic continues to increase, this project will facilitate smoother cargo transfers and boost economic growth for both nations. With the launch of the cargo terminal in 2027, the logistical capabilities between Russia and China will be greatly improved, offering new opportunities for businesses and contributing to the overall prosperity of the region.
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