BMW plans to utilize more railway services to transfer goods to China, BMW’s logistics and transportation planner Nobert Dierks said. The company has been using China Railway Express (CRE) since 2011 as an alternative way to carry their goods to their plants in China, including production materials, engine parts and after-sales components. BMW opted for CRE as it is time-saving when compared to maritime transportation, and it is cost-saving when compared to airlift.
“We used to carry our components to nearby harbors and transfer them via sea route, but we had some punctuality issues. And that’s why we chose CRE as an alternative. It is always in time,” Nobert Dierks said. The delivery time via CRE, from BMW’s German plants to China’s industrial district in the northeast region, was about 30 days in 2011, but it only takes around 17 days in 2017.
BMW will use the services more in the future, not only for cost-efficient reasons but also for environment protection. The company estimates that CRE has helped reduce its carbon emissions by around 15,000 tons in 2016.
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