An organizational model and border port hinterlands for the China-Europe Railway Express

Facilities connectivity is a priority area for implementing the Belt and Road Initiative (BRI). The “China-Europe Railway Express” (CER Express) mode of transport organization links China with Europe by fast-track cargo rail. A major instance of facilities connectivity related to this project is an important practical and symbolic instance of BRI transport cooperation. The strategic significance of the CER Express and a number of operational issues are outlined, as are the implications of limited market potential for costs and competitiveness. A “hub-and-spoke” organizational model that can generate scale economies and reduce costs is proposed. To examine the establishment of an organizational model of this kind, the economic hinterlands of Alashankou, Erenhot, and Manzhouli are identified under high-, mediumand low-cost scenarios using an analytical methodology that determines distance and economic costs, and a number of transport hubs (that include Harbin, Zhengzhou, and Lanzhou) are identified. The results found that the cost of the routes from 314 Chinese cities to Moscow is the lowest via Manzhouli in the high- and medium-cost scenarios, but the routes change via Erenhot in the low-cost scenario. A number of policy recommendations should follow up.