Volvo Ships Cars to Belgium Via Revived “Silk Road”

Volvo becomes the world’s first automaker to export Chinese-built cars to Europe by train using China’s new “Silk Road.”

The first S90 premium sedans, constructed at Volvo’s Daqing plant, arrive this week at a distribution center in Zeebrugge, Belgium.

Cars have been transported to Belgium via the recently opened China-Europe railway link which reduces vehicle transit times to Europe by two-thirds compared with traditional shipping routes.

The train route ties Volvo’s global manufacturing and logistics strategy to the multibillion- euro trade flows between China and Europe dubbed the One Belt, One Road initiative that seeks to resurrect the ancient Silk Road trade route between East and West. It also illustrates how China is turning into a global manufacturing and export hub for high-end consumer products.

Volvo was the first Western automaker to export a premium Chinese-made car to the U.S. in 2015 with the S60 Inscription. In November 2016, Volvo started building high-end versions of its S90 in Daqing and soon will be building all S90 vehicles in the factory for global export.

Beyond shorter waiting times for customers, Volvo says, rail also is a smarter choice in terms of the environmental impact of logistics operations. Given the same distance, carbon-dioxide emissions per ton/km are reduced by a third by choosing rail over sea transport. In this case, the savings will be even higher based on the shorter distance.

Volvos building S90 sedans in Daqing, China, for export to Europe.

Each of the Volvo-dedicated trains traveling between Daqing and Zeebrugge will carry about 225 Volvo cars, which are transported in specially designed containers. One container holds three cars at different angles in order to maximize the use of space available inside. Special fixtures ensure the cars are fastened during transport and do not move.

Initially, trains will depart from Daqing once a week. The plan is to increase this frequency in line with growing volumes.

The first S90 sedans will arrive in Belgium in the same week China’s Prime Minister Li Keqiang visits the country.