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FAW and Dongfeng ink strategic partnerships with China Railway to deepen cooperation

BEIJING – FAW Group Corp. and Dongfeng Motor Corp. signed separate strategic cooperation agreement with China Railway Corp. in Beijing on July 20 and July 21 respectively in order to further deepen their cooperation.

In September 2016, five ministries of the state jointly governed the oversize and overloading of road transportation, which had a huge impact on the logistical transportation of vehicles. And from July 1, 2018, the illegal transport vehicles will be completely prohibited from running on the roads. By then, road capacity will be more intense and costs will continue to rise. Under this background, FAW and Dongfeng both turned to China Railway Corp. for deeper cooperation.

China Railway Corp. has basically completed the construction and reserve of commercial vehicle logistics base, transportation network and transportation facility, which laid the foundation and conditions for the transportation of commercial vehicles. China Railway Corp. will provide more qualified service products to meet the needs of automobile logistics through supply-side structural reform.

FAW will continue to promote the increase of railway traffic volume and extend railway transportation scale. The deepening of cooperation between FAW and China Railway Corp. can accelerate the transformation of transport model and optimization of industry business chain, thus reducing logistics cost, improving railway logistics service level and realizing mutual benefit.

Dongfeng will establish a high-level coordination mechanism and build a new model of logistics service with China Railway Corp.

“Now the regress of railway transportation is actually a new strategic development opportunity, which can make automakers adjust transportation models for vehicle delivery. Dongfeng will have centralized planning for railway transportation. We hope that Dongfeng and China Railway Corp. can deepen cooperation in dedicated rail lines and car leasing,” said Zhu Yanfeng, chairman and Party secretary of Dongfeng.

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