Henrik Christensen, co-founder and Chairman of Silk Route Rail Ltd.is Guest CILT Speaker at the 3rd China International Logistics Development Conference in Suining City

1. The Railway Challenges on
the New Silk Road
by
Silk Route Rail Ltd.,
Hong Kong
Suining 31st October 2016
by CILT International
www.ciltinternational.org

2. Our aim for today is to update on
• China’s vision for 5000 trains by 2020
• Silk Route Rail’s vision as a private NTOCC
• Current Railway services from and to China
• Some of the the obstacles
• Automatic gauge changing solution using
Triple X wagons
• Innovations in reefer / temperature containers
and wagons
• Difficulties in raising founding for private projects
• Viable railway service WITHOUT subsidies
• New services from China to Ireland
www.ciltinternational.org2

3. 3
5,000 China-Europe cargo trains expected by 2020
BEIJING, Oct 18 (FAM) - China’s top economic planning body National
Development and Reform Commission said there will be a safe, convenient and
efficient system of China-Europe direct cargo trains by 2020 with an estimated
5,000 cargo trains running between the two continents.
As a key component of the Belt and Road initiative, direct cargo trains will
connect a growing number of cities in China and Europe. Demand for rail cargo
service between China and Europe has exploded in recent years because it
offers an alternative to slower and riskier sea freight and much costlier air
cargo.
The development plan shows that the cargo train service system will consist of
three routes -- an east route, a central route and a west route. The routes will
not only connect China with Europe, but also with East Asia and Southeast Asia.

4. 4
Silk Route Rail’s vision for the train services
Our vision as shown on the next map is;
a. The service must be private and 100% neutral – state owned companies do not
always understand this.
b. There must be investments into innovations in wagons and temperature
controlled containers
c. The critical use of hubs such as Khorgos on the China / Kazakhstan border
managed and run by DP World. Also cargo from South East Asia to central Asia.
d. Block trains from virtually every province in China
e. Block trains from China to combine Central Asia, Middle East and Russia
containers
f. The service is viable WITHOUT subsidies

5. KHORGOS
CHINA AND SOUTH EAST
ASIA DESTINATIONS:
Chongqing
Chengdu
Wuhan
Lianyungang
Xian
Zhengzhou
Shanghai
Kunming
Xiamen
Guangzhou
Wuwei
Bangkok
Singapore
Vietnam
EUROPEAN
DESTINATIONS:
Hamburg
Duisburg
Lodz
Warsaw
Prague
Antwerp
Rotterdam
Paris
London
Vienna
Milan
GULF & CENTRAL ASIA
DESTINATIONS:
Bandar Abbas
Middle East
Central Asia
SOUTH & CASPIAN
DESTINATIONS:
Turkey
Georgia
Azerbaijan
Armenia
Note: Current destinations served by Yuxinov, YHV and other platform companies in China 7
AAA – Currently served destinations
AAA - Planned destinations
Silk Route Rail Service Points – Southern route
Include fastest inland spokes between Asia, Europe, Middle East
≡ return to content

6. 6
Current services from China
No.
China Departure
Station/Destination
Oversea Destination/Departure Station
1
Chongqing
Duisburg（Germany）, etc
2 Cherkessk（Russia）, etc
3
Zhengzhou
Hamburg （Germany）, etc
4 Hamburg （Germany）, etc
5 Chengdu Lodz （Poland）, etc
6 Wuhan Pardubice（Czech Republic）, etc
7
Wuhan
Hamburg （Germany）, etc
8 Tomsk（Russia）, etc
9
Suzhou
Warsaw（Poland）, etc
10 Brest （The Republic of Belarus）, etc
11 Yiwu Madrid （Spain）, etc
12 Shenyang Hamburg （Germany）, etc
13 Changsha Hamburg （Germany）, etc
14 Lanzhou Hamburg （Germany）, etc
15 Beijing-tianjin Ulan bator （Mongolia）, etc
16 Lianyungang Almaty （Kazakhstan）, etc
17 Yingkou Baikal（Russia）, etc
18 Qingdao Almaty （Kazakhstan）, etc
19 Wulumuqi Almaty （Kazakhstan）, etc
20 Xi'an Almaty （Kazakhstan）, etc
21 Hefei Almaty （Kazakhstan）, etc
22 Jinan Almaty （Kazakhstan）, etc
23 Dongguan Almaty （Kazakhstan）, etc

7. Challenges
7
There are many challenges that need to be resolved before the railway services on
all 3 routes becomes efficient, effective and commercially viable such as;
1. Subsidies
2. Competition between the platform companies
3. Lack of investments into resolving the critical temperature controlled solution
for rail.
4. Overpriced diesel electric containers
5. Use of Triple X automatic wheel / gauge changing wagons with electric supply to
power the reefer containers.
6. Long delays at the border

8. Triple X automatic wheel changing wagons with power
• Allows railway wagons to travel all the way
without having to change wagons due to
different railway gauges in China and Russia.
Different gauges at China / Kazakhstan border
and Belorusia and Poland.
• Current delays at the border is a delaying block
trains for up to one week
• Triple X wagons also used Kinetic energy to
power the reefer containers.

9. 9
Triple X - Automatic wheel change wagons
Capacity: 9 TEUs (20`Container)
3 x 45ft + 3 x 20ft Container
Payload 129 tons – Speed upto 160 kms
Electric Train Line for connection to reefer containers and temperature
controlled cargo for rail service
by Soho Technology, Switzerland

10. www.ciltinternational.org10
Triple X Wagons with kinetic energy to power reefer containers
rCE powerpack Conversion of the kinetic energy of the wheel battery into electrical energy and storage in batteries Due to the energy storage in
modern batteries, the cooling chain is also maintained when the train is stationary for an extended period of time. This reduces CO2 emissions
and leads to less noise emissions against the diesel-electric transports (Reefer)

11. SRR is working on innovative solutions
11
Electric cabling wagon – 8 axe flat carGensets for rail packs & intermodal
Variable-gauge wheelsets & auto axles
• Reliable power for up to 10 containers
under continuous operation and high
ambient conditions
• Capable of supplying power for containers
anywhere
• Special filtration for blowing snow in the
mountains to sand in the deserts
• Built for temperature extremes
• 4-axe high speed container car for
reefers and heavy weight
• Ready for central electricity supply
• Load capacity 71.5 tons
• Designed speed 120km/h
• Can carry one 40’ container or up to 2 x
30’ containers
3 x 40ft
• 8-axe high speed container car for
reefers and heavy weight
• Load capacity 129 tons
• Designed speed 120/160 km/h
• Can carry up to 3 x 40’-45’ + 2 x 20’
containers
Electric cabling wagon – 4 axe flat car
• Allows railway vehicles in a train to travel
across a break of gauge caused by two
railway networks with differing track
gauges
• Quickest option – allows to avoid
transferring freight or replacing individual
wheels and axles
≡ return to content

12. 12
Reefer / Temperature controlled containers
The first solution for these type of containers was the 45’ diesel electric container
but many problems due to extreme temperature in the winter months in
Kazakhstan and Russia and difficulties getting clean diesel fuel.
The very high cost of these 45’ diesel electric containers in comparison to a normal
electric reefer container.
The noise from these diesel electric containers and cities in Germany have
forbidden these wagons with diesel electric containers to stop in their cities.
Lack of electric cabled railway wagons and permission in China to build and use
such wagons. Triple X wagons have electric cable already installed in those wagons
as well as kinetic energy and battery backup to power the reefer containers.
Lack of investments into new battery and wheel generator wagons that eliminate
the need of diesel generators to power electric containers on block trains.

13. SRR Container Options
Quality- containers that matter to enable industry needs
13
‘40 Reefer
Electric
‘45 Reefer
Diesel-Electric
Insulated 40’
container
20‘ and 40’
Dry regular
container
Description Description
• 40’ reefer with diesel/electric powered genset
• Active solution - allows to set temperature in a range
between -25°C and +25°C for the whole trip
• Inside dimensions: length: 11,840mm; width: 2,286 mm;
height: 2,120 mm
• Capacity: 20 iso pallets (1,000 x 1,200mm)
• 40’ container, specially insulated floor, walls & ceiling
• Passive solution – smoothens temperature changes, helps
to avoid outside temperature extremes
• Inside dimensions: length: 11,858mm; width: 2,094 mm;
height: 2,518 mm
• Capacity: 18 iso pallets (1,000 x 1,200mm)
• 20’ and 40’ dry freight container
• Standard Inside dimensions of ‘40: length: 12,022mm;
width: 2,352 mm; height: 2,395 mm
• Capacity: 21 iso pallets (1,000 x 1,200mm)
• 45’ reefer with diesel/electric powered genset
• Active solution - allows to set temperature in a range
between -35°C and +40°C for the whole trip
• Inside dimensions: length: 13,275mm; width: 2,438 mm;
height: 2,575 mm
• Capacity: 26 iso pallets (1,000 x 1,200mm)
Note: Each special container type subject to availability – please confirm with SRR team ≡ return to content

14. Processed food (eg chocolate, oil)
•+1+7C, +10+15C for most types of
processed & packed food
•Critical temperature control to avoid
solidification/melting
•Controlled humidity for dry fruits
Fresh & Frozen food & flowers
•0C-1C, -1-4C, + 2C-8C, -18C-23C,
temperature-controlled storage
•Solutions for fresh seafood, deli, best
types of beef and lamb, exotic fresh cut
flowers , fruits & vegetables etc.
Pharmaceuticals
Tailor solutions for diff. pharmaceuticals
•Deep frozen (-20°C or lower)
•Refrigerated (2-8°C)
•Protection from freezing (2-25°C)
•Controlled room temperature (15-25°C)
Premium Wine & Champaign
•Permanent strict cold-chain
management of 11°C to 17°C in
special containers
Electronics, Machine parts
•+10+20C for most of industrial goods
•Controlled humidity <60% to avoid active
corrosion of metal parts
•Monitored vibration for vibration
sensitive cargo
Special chemicals (dry and liquid)
•Tailor-made solutions for DG classes 1-9
available on request
•Handling procedures in compliance with
local safety standards
•Additional security measures
SRR Reefer Product Solutions
Quality- Active solutions for most demanding cargo help to deal with unsuitable ambient
environment that will soon be available
14
Proper cold chain processes and
warehouse handling
Special supply chain processes
helps to avoid unsuitable
ambient environment
Multiple temperature and
battery checks during shipment
Online tracking
Multiple on-line checks of
temperature / humidity / CO2 /
light / vibration / motion / tilt etc.
Thermostat-controlled air-
conditioning/heating system
powered by diesel/electric gen
Thermostat-controlled air-
conditioning/heating system
powered by diesel/electric gen
Prioritized handling, Speedy
ground logistics enabling prompt
customs clearance at delivery.
Specially trained and experienced
staff look after your cargo and
storage condition
Specially trained and experienced
staff look after your cargo and
storage condition
Mandatory dry ice and battery
management
Best in class mandatory
container management and
power generator service
≡ return to content

15. No subsidies needed
• It is in our opinion possible to run a profitable and sustainable block
train railway service without subsidies.
• The railway service is not meant for low value commodities such as
plastic toys.
• Internal competition in China is creating low unsustainable freight
rates.
• The railway service is not meant as an alternative to ocean freight but
it meant as an affordable alternative to airfreight. Rail is only expected
to carry less than 1% of the ocean freight but up to 10% of airfreight.
• It requires professional private neutral involvement to operate a
pendulum service with balanced westbound and eastbound cargo.
www.ciltinternational.org15

16. Services from and to Ireland
We are working on new services to and from
Ireland for pharmaceuticals and dairy products.
16

17. CONTACT DETAILS:
Silk Route Rail Limited
Hong Kong
Contact:
Email: Henrik.Christensen@silkrouterail.com Tel: + 852 9228 0234
Web: www.silkrouterail.com
Linkedin: https://www.linkedin.com/groups/8360956
Thank you
17
≡ return to content