The Italian state rail operator, FSI, is launching a new service to China via Azerbaijan and Iran RailFreight reports. That follows the launch of nine similar services across Europe in the past 12 months, as outlined in Panjiva research of June 29, which embodies the expanding belt-and-road initiative of the Chinese government.

The decision has likely been driven in part by the rapid growth in Italian exports to China which grew by 7.0% in 2Q vs. a year earlier and by 18.4% in the past 12 months Panjiva analysis of official data shows.

Chart shows Italian exports to China on a monthly (dotted) and quarterly average (solid) basis. Calculations include China General Customs Administration data.   Source: Panjiva

Exports by rail to China from Italy represented just 1.3% of the total in the 12 months to February 28, Panjiva data shows, which was vastly behind sea-freight’s 55.2% share. Yet, railfreight offers a significant advantage in terms of delivery times. The leading product group that was shipped by rail in the past 12 months were passenger cars at 17.7% of the total, or $2.0 billion. The largest exporters – Ferrari’s Maserati and and Fiat’s Alfa Romeo – would likely be attracted by the faster shipment times available.

Chart segments seaborne Italian exports to China by product (HS-4) and destination province for the 12 months to February 28, denominated in dollars.   Source: Panjiva