China’s Xuanyuan Group Industrial Development company plans to build a massive logistics hub in the Amur Region in Russia’s Far East, as freight turnover between the two countries has more than doubled over the past year, the RT reported on Sept. 15. Last week the Xuanyuan Group announced another big deal in Amur, at the annual Eastern Economic Forum in Vladivostok.
This latest deal is to build a hub located between the city of Tongjiang in China’s Heilongjiang province and its neighboring town in Russia, Nizhneleninskoye, which is designed to facilitate Russia-China cargo transfers.
According to the Xuanyuan Group, the $600-700 million project envisages the construction of a terminal for storage and transportation of hazardous and nonhazardous goods, such as liquefied natural gas (LNG), liquefied petroleum gas (LPG), aviation fuel, helium, and others.
Xuanyuan CEO Hailong Xue said, “The location of this hub is very important as it will be right between our borders. There is a narrow stretch between our frontiers which makes cargo transfer rather problematic. But, with our project, we estimate that freight transportation will reach 10 million tons annually.” He expects cargo traffic between Russia and China to increase fourfold in the next few years.
