In 2022, China and Russia opened their new cross-border rail bridge between Tongjiang and Nizhneleninskoye. Rail traffic then grew rapidly, but the bridge could now also attract new economic activity altogether. A Chinese company is considering an investment of hundreds of millions of dollars in industry and logistics on the border.
The Chinese company in question is Gugaoll, writes the acting governor of the Russian Jewish Autonomous Oblast (in Russia’s Far East) on Telegram. It remains unclear what this company is and what its business entails. In total, the investments would amount to the equivalent of around 360 million euros.
Two thirds of the investment would go to a rail hub in the Nizhneleninskoye bridge zone. Gugaoll intends to spend the remainder on an agricultural-industrial park in the area of 50 hectares. “The projects include coal logistics, animal husbandry, corn processing, oil production, starch and other agricultural crops”, the governor adds.
Bridge boosts business
“These negotiations became a big step in our partnership with China, and in the near future we will go ahead with the practical realisation of the projects. Each one of them is an investment in the future of the Jewish Autonomous Oblast and a rise in the quality of life of people in the region.”
Despite its young age, the Tongjiang – Nizhneleninskoye rail bridge has played an important role in the growth of China – Russia freight traffic. For example, rail freight between China and Russia via the Far East rose by 22% in the first ten months of 2023, driven in part by the opening of the bridge in 2022. It handled 2,5 million tonnes of goods, including 1,9 million tonnes of coal and over 10,000 tonnes of containerised freight, which made up roughly 21% of the total cross-border volume at the time.