The plan envisages that rail freight transport among the signatory nations will meet and possibly exceed the volume recorded during the first decade of the 21st century, although the companies do not specify within which timeframe this should happen.

“The cooperation covers two key directions: the transport of goods between China and Europe via existing rail corridors, as well as the transport of goods arriving in or departing from European ports, between terminals on the European continent, supplemented by road transport”, writes Srbija Kargo. Much Chinese freight enters the Greek port of Piraeus, from where it travels to the European hinterland through North Macedonia and Serbia.

“Transport organised in this way brings numerous advantages – faster delivery, shorter transit times, greater cost-effectiveness, reliability in accordance with the timetable, more efficient logistics processes and lower environmental impact”, Srbija Kargo continues.

Key goals of cooperation

Rail freight operations on the cross-Balkan route should improve through the “integration of rail transport relations”, the simplification of logistics chains, common digital solutions, and enhanced cross-border cooperation, the involved companies state.

Moreover, the MoU identifies various areas for future cooperation. These include the development of intermodal transport (semi-trailers, containers), interoperability, knowledge transfers, simplified customs procedures and a digital data exchange. It also mentions coordinated rail infrastructure development, joint marketing efforts, and personnel training as potential areas for collaboration.

Once operational, the BuBe will provide an important modern rail freight artery in two of the main hubs in Eastern Europe. Moreover, it should facilitate traffic to and from the Greek port of Piraeus, a key point for China as it is owned by Cosco. The relevance of this infrastructure for China is also reflected in its inclusion in the Belt and Road Initiative.