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Luxembourg and China sign MoU for Direct Rail Link

Published Friday January 08 2016

This week a Ministerial visit is taking place to China involving Luxembourg's Minister

of Sustainable Development and Infrastructure, Francois Bausch, and the Secretary of State for Sustainable Development and Infrastructure, Camille Gira, who are in both Beijing and Zhengzhou, capital of central Henan Province.

In Zhengzhou on Wednesday, a meeting took place with the Governor of Henan Province,

Xie Fuzhan, followed by the signing of a Memorandum of Understanding between CFL multimodal (MM) and "Zhengzhou International Hub Development and Construction Co., Ltd. "(ZIH). The purpose of this MoU is the study

of a rail connection for freight between Zhengzhou and the multimodal platform at Bettembourg in Luxembourg.

This study will define the responsibilities of both parties and the frequency of

trains. The two sides will develop a business plan involving the definition of potential volumes of goods transported to and from Bettembourg. It is planned to establish this business plan and projection of services to be

offered by the end of May 2016. The exploration potential of customers could be realised during the second half of 2016 and a final cooperation agreement is likely to be signed in autumn 2016. The first trains could be operational

in 2017.

The aim of the operation is to establish, in collaboration with air freight, a "dual hub strategy" in the railway sector between the Grand Duchy of

Luxembourg and Henan. The advantage of rail transport is its intermediate position between air transport that is more expensive, and shipping which takes too long for certain types of goods.

At this stage of the project CFL believes that it can transport many types of goods,

including consumer goods and automotive equipment. The interest of CFL MultiModal is therefore to strengthen its European multimodal hub position ensuring European freight distribution.