China and South Korea Signed a Memorandum of Understanding on the Trial Operation of China South Korea Multimodal Transportation

Trial Operation for Whole Vehicle Transportation between China and South Korea to be Implemented

On February 24, 2023, the Ministry of Transport of China and the General Administration of Customs of China signed the Memorandum of Understanding on the Trial Operation of China South Korea Multimodal Transportation (Weihai-Incheon) (hereinafter referred to as the MOU) with the Ministry of Land, Infrastructure and Transport of China, and the Korea Customs Service.

The China-Korean land-sea intermodal automobile freight transport is one of the key action plans agreed upon during The 1st China-Japan-Korea Ministerial Conference on Maritime Transport and Logistics held in Seoul, South Korea on September 7, 2006. The cooperation project, as agreed by both parties, is divided into two stages, namely the drop and pull transportation stage and the whole vehicle transportation stage. The transportation authorities of China and South Korea signed the China-Korean Land-sea Intermodal Automobile Freight Transport Agreement and the Implementation Protocol for the first stage in 2010. Since the signing of the Implementation Protocol, both sides have actively and pragmatically engaged in cooperation, accelerated the opening of logistics channels, continuously improved the operational environment, and gradually standardized logistics cooperation. Especially during the COVID-19 pandemic, they have provided important guarantees to ensure the uninterrupted logistics chain between China and South Korea.

To enhance the efficiency of logistics services between China and South Korea and promote the implementation of land-sea intermodal whole vehicle transportation, the two sides signed the MOU. According to the MOU, China and South Korea will organize a six-month land-sea intermodal transportation trial operation based on the agreed matters and conduct multimodal whole vehicle transportation cooperation between Weihai and Incheon. Compared with the drop and pull transportation at the first stage, the whole vehicle transportation enables vehicles to travel directly to the destination. After reaching the maritime port along the prescribed route in one country, they will head for the other country via China-South Korea liners and then the destination on land. By reducing the need for loading and unloading, as well as changing vehicles, the process significantly lowers logistics costs. As a result, it can better meet the logistical transportation needs of goods with high timeliness requirements, which is of great significance in facilitating international transportation between China and South Korea. Officials of the Ministry of Transport of China and the General Administration of Customs of China said that China will guide Shandong province to conduct trial operations of whole vehicle transportation between China and South Korea in an orderly manner under the framework of the MOU. The process will entail evaluating the implementation, optimizing management and service measures, enhancing transportation efficiency, and continuously promoting innovative development in international transportation between China and South Korea.