Estonian company signs contract to bring railway route from China to Muuga

A subsidiary of Estonian logistics company GTS Express entered into a cooperation contract with a Chinese company in the framework of which initially two trains from Xian per week should begin arriving in Muuga beginning in June.

On April 19, GTS Rail, a subsidiary of GTSExpress, signed a cooperation contract in the Chinese city of Xian with Xian International Inland Port Multimodal Transportation Co. Ltd. for the promotion of railway transport. According to the company, the agreement should help increase trade with Estonia as well as with the EU as a whole.

The agreement is part of bringing the Chinese government-backed Belt and Road Initiative to Estonia. With this contract, the Chinese side agreed to expand subsidies to the Estonian route as well. Four such routes have previously been established from Xian to Europe — to Hungary, Germany, Poland and Finland.

According to current plans, the first train is expected to arrive in Muuga in June, and the plan is to initially send two trains per week, to increase later. "The new trade route is of critical significance, as it is twice or up to three times as fast as the seaway," the company said. "This will give Estonian and EU goods to China and goods from there to here a new, fast and effective transport opportunity as well as revive Estonia as a historic transit country."

GTS Express CEO and GTS Rail board member Marko Lastik expressed pleasure that longtime efforts and presence in China have led to a result which will promote the Estonian economy and trading not only between two countries, but between the entire EU and China. "Entering into this contract will definitely offer greater trade opportunities, promote exports and imports as well as offer more work to local companies, at the same time ensuring stable prices and transit times year round," he said.

"The objective of the signed railway unit goes beyond Estonia, but previously untapped opportunities will now expand to include Estonian e-trade companies and the logistics sector as well," said Ministry of Economic Affairs and Communications Deputy Secretary General for Economic Development Viljar Lubi. "In order to realize this potential in the future, the Estonian state must contribute even more to its e-government solutions, which can further cut down the length of the journey of goods in this field in close cooperation with the Estonian Tax and Customs Board and others. We wish GTS Express success in opening a new and significant route. This proves that Estonia can be a serious partner to the state and businesses of China, and is a steady point at the crossroads of primary trade routes in the future."

The agreement was signed during the visit of a business delegation led by Lubi to China. The visit was organized by Enterprise Estonia in cooperation with the Ministry of Economic Affairs and Communications and the Estonian Embassy in Beijing. The visit focused on discussing a plan of action for the next six months in connection with the e-trade and ICT cooperation agreements concluded with China last November.

Editor:Aili Vahtla

Source:BNS

err.ee
RAIL TRANSIT ENTERPRISEESTONIA TRADE MINISTRYOFECONOMICAFFAIRSANDCOMMUNICATIONS CARGO CHINA
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Politics
Chairman of the Estonian Chamber of Commerce and Industry and one of the owners of construction group Nordecon, Toomas Luman, finds that a prime ministerial candidate should first and foremost be able to answer the question of what will become of the demographic crisis in Estonia. The businessman sees controlled introduction of foreign labor as the solution. A digital construction cluster was created in Estonia a few years back to bring innovation to the s...
Society
Last year saw 27,125 registered offenses, up 0.5 percent from the year before. Violent crime was up by 12 percent to 8,249 offenses. PHOTO: Dominic Lipinski / PA Wire / Press Association Images / Scanpix Growth was biggest for domestic violence – the police launched criminal proceedings in 3,607 cases that constitutes an increase of more than one-third – annual growth of 37 percent from 2,632 cases in 2017. At the same time, reports of domestic violence we...
Society
TALLINN - Ahead of the withdrawal of the United Kingdom from the European Union, tens of thousands of British citizens have chosen the citizenship of some other country, but only one Brit has recently chosen an Estonian citizenship. Spokespeople for the Ministry of the Interior told BNS that only one British citizen submitted an application for Estonian citizenship last year and the applicant was also granted the citizenship. Before that, no Brits had soug...
Society
TALLINN - Experts from Finland, Denmark, Norway and the Netherlands highlighted the importance of decentralization and granting local governments greater decision-making powers at a conference titled "Strong local government -- strong state?" in Tallinn on Wednesday.  All Nordic countries have chosen a model granting local governments significant decision-making powers, thus the central government does not prescribe how local governments are to fulfill the...
Society
The language learning application Drops by game developer Planb Labs, established in Estonia by Hungarian founders, was named Google Play's best app of 2018. With the number of downloads surpassing 10 million, Drops was named Google's app of the year as the revenue of Planb Labs, a company registered in Estonia, increased fivefold, CNBC said. The developer's revenue grew from €335,000 in 2017 to €1.7 million in 2018. The company's shareholders include Hung...
Society
TALLINN - The Estonian Health Board has banned the distribution of chlorine dioxide, also marketed as the Miracle Mineral Supplement (MMS), the A-component of an unused product, meaning the sodium chlorite solution, must be taken to a hazardous waste collection facility. Ester Opik, head of the Health Board's North regional department, said that the banning of the distribution of the product was caused by the fact that MMS, distributed as a cosmetics produ...
Society
Nature cannot abide a vacancy, as the saying goes. If just one year ago, Estonia was battling the sale of MMS and the practice of giving it to children, a new “miracle cure” called Advanced TRS has appeared on the market now. Even though the make-up of the substance is different, the promise to cure autism and cleanse the body of heavy metals, which kind of extreme detox is accompanied by severe side-effects, sounds all too familiar. TRS is recommended to...
Society
Allied NATO battalions will soon mark two years serving in the Baltics. They have worked better than expected but would need prepositioned heavy weaponry and a functional contingency plan in case of a crisis, a report by the International Center for Defense and Security (ICDS) finds. “We do not know how Russia would have acted had we not welcomed allies in Estonia, Latvia, Lithuania and Poland in 2017. I’m afraid they would have tested our resolve,” one of...
Society
The time of filing income tax returns is nearly upon us. The new income tax system, in effect since last year, will obligate many women who went on maternity leave toward the end of the year to make additional income tax payments, while those who give birth in the middle or at the beginning of the year have no such obligation. What this means is that some women will owe the state simply for giving birth “at the wrong time”. Laura Roop, who went on maternit...