Hyundai Glovis opens firm in Chengdu for logistics to Europe

Hyundai Glovis Co., a logistics unit of Hyundai Motor Group, has founded an affiliate in Chengdu, the largest trade city in western China, for railroad transport between China and Europe. It has become the first Korean company to set up a rail freight logistics firm in China.

The Korean firm said on Dec. 29 that it has established Chengdu Glovis SCM to target the expanding market of logistics trade between China and Europe. Hyundai Glovis also plans to operate express freight trains with China’s state-run Chengdu International Railway Port Investment & Development Co. and increase logistics bases in China’s inland areas for exports of finished cars.

As sea transport fare has rapidly increased in the pandemic, demand for railroad transport has increased. Hyundai Glovis said train freight from Chengdu to Europe has increased from 82,000 forty-foot equivalent units (FEU) in 2019 to 123,000 FEU in 2020.

The Korean firm also said Chengdu is a railway transportation hub, which has the second-highest number of Trans China Railway (TCR) departures in China. TCR is a railway connecting China and Europe, departing China’s major cities such as Chengdu, Xian and Chongqing to Europe, via Kazakhstan and Russia.

Write to Byung-Uk Do at dodo@hankyung.com
Jihyun Kim edited this article.