Japan and Russia to Transport Cargo via the Trans-Siberian Railway, Possible Extension to Europe

Japan and Russia plan to establish a cargo transport route between the two countries via the Trans-Siberian Railway, aiming to strengthen their economic cooperation by developing a “third distribution channel,” following maritime and air routes.

The realization of this project is also driven by the desire to build a reliable connection between the two countries and thus open the way to resolving territorial disputes.

According to the Japanese daily Yomiuri Shimbun, Japanese companies will begin trial use of the Trans-Siberian Railway around the 4th Eastern Economic Forum, which will take place from September 11 to 13, and will be attended by Japanese Prime Minister Shizo Abe.

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So far, discussions have been held regarding the participation of between five and ten Japanese distribution companies in the test project for cargo transport along this route, during which costs and transport times, administrative procedures related to customs, import and export, as well as elements that may affect the cargo such as vibrations during transport and temperature differences will be studied.

According to the Japanese Ministry of Agriculture, Infrastructure, Transport and Tourism, it takes between 53 and 62 days to transport cargo by sea from Japan to Moscow. On the other hand, it is expected that the time required for transporting cargo by rail would be reduced to 20 to 27 days. Additionally, costs would be reduced by 40 percent.

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Companies interested in the railway cargo transport project hope that improved efficiency will lead to increased exports of auto parts and other industrial products. Furthermore, it is technically possible to transport crude oil and natural gas by rail.

There is also the idea of extending the route into Europe via Moscow, which, if realized, could be a key route to stimulate trade between Japan and Europe.

In May, Tokyo organized the fourth business forum related to the development of the Trans-Siberian Railway, which brought together officials from various government agencies and leaders of major trade, logistics, and railway companies from Russia, Japan, China, Kazakhstan, and Mongolia.

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The Eastern Economic Forum will be held in the Russian city of Vladivostok, during which more than 50 business events will take place, including panel discussions, business dialogues, and round tables. This year’s forum is titled “The Far East: Expanding the Boundaries of the Possible.”