ID :
212119
Tue, 10/11/2011 - 07:31
Auther :
Shortlink :
https://www.oananews.org//node/212119
The shortlink copeid
Congestion on China railroad takes toll on S. Korean firms
SEOUL (Yonhap) - Freight handling congestion on the Trans-China Railroad (TCR) has caused losses for South Korean companies trading with Central Asian countries, a local traders association said Tuesday.
The Korea International Trade Association (KITA) said surveys conducted on 29 companies showed 55 percent complaining that delays in the movement of freight have hurt their businesses. Of the total, 18 percent claimed that they have experienced a spike in logistics costs and a loss of buyers and business partners.
The TCR connects China with Europe, with many South Korean companies using the rail line to send products to Central Asia.
KITA said the main problem with the rail system lies in the delays caused at the Chinese-Kazakhstan border. It said lack of locomotives in Kazakhstan to move freight through its territory has caused serious delays, along with measures by Chinese authorities to limit the number of trains going to Kazakhstan on the railway line.
"There have been some moves to increase the number of locomotives, but because China maintains its restrictions on TCR traffic, there is a need for the Seoul government to speak on behalf of South Korean businesses," the trade association said.
The South Korean embassy in Beijing must ask Chinese railway authorities to lift the train traffic restrictions that have been in place since Aug. 10, it said.
The Korea International Trade Association (KITA) said surveys conducted on 29 companies showed 55 percent complaining that delays in the movement of freight have hurt their businesses. Of the total, 18 percent claimed that they have experienced a spike in logistics costs and a loss of buyers and business partners.
The TCR connects China with Europe, with many South Korean companies using the rail line to send products to Central Asia.
KITA said the main problem with the rail system lies in the delays caused at the Chinese-Kazakhstan border. It said lack of locomotives in Kazakhstan to move freight through its territory has caused serious delays, along with measures by Chinese authorities to limit the number of trains going to Kazakhstan on the railway line.
"There have been some moves to increase the number of locomotives, but because China maintains its restrictions on TCR traffic, there is a need for the Seoul government to speak on behalf of South Korean businesses," the trade association said.
The South Korean embassy in Beijing must ask Chinese railway authorities to lift the train traffic restrictions that have been in place since Aug. 10, it said.
