- Hyundai Glovis established a subsidiary for rail freight in Chengdu, in China’s Sichuan province.
- Hyundai Glovis is the first South Korean logistics company to establish a subsidiary specializing in rail transport in China.
- Chengdu Glovis SCM was built to help the parent company diversify rail transport, while ensuring a logistics facility for import and export of finished vehicles in China.
Hyundai Glovis establishes railway transport company Chengdu Glovis SCM
Hyundai Glovis, Hyundai Motor Group’s logistics unit, has established a rail freight business in Chengdu, China’s Sichuan region. Chengdu is known as the major commercial center in this country’s west.
As of 2020, Chengdu is China’s rail transport center with the second-highest number of TCR train departures (about 2,800 times). TCR, in particular, is a railway that connects Chengdu, Xi’an, Chongqing, and other Chinese regions to Regions via CIS nations such as Kazakhstan and Russia. TCR shipments from Chengdu to Europe increased from 82,000 FEU (40 feet) in 2019 to 123,000 FEU in 2020.
Hyundai Glovis, on the other hand, is the first Korean logistics business to create a subsidiary specializing in rail transport in China. This shipping company, Chengdu Glovis SCM, specializes in transporting freight containers by high-speed rail from China to Europe.
Chengdu Glovis SCM was established with the goal of assisting the parent firm in diversifying rail transport while also ensuring a logistics base in China for the import and export of finished cars.
Hyundai Glovis develops a rail transportation business strategy.
Hyundai Glovis has established its rail transport business plan by operating high-speed trains departing from Chengdu. Hyundai Glovis implemented this method because high-speed rail freight trains are faster than sea and less expensive than air.
Furthermore, the company sees commercial prospects from big global customers via Chengdu’s TCR route to Europe, as there are several multinational electronics and semiconductor industries on this route. Furthermore, the company will target Chinese automakers, as Sichuan province has over 400 finished auto components and auto parts companies.