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SAMSUNG to Build New Silk Road

In the beginning of November  Samsung Group representatives held a meeting with the government of Dalian district (former Dalny) in the city of Dalian and signed an agreement to make Dalian a starting point for a new transport route connecting the rapidly developing region of North East Asia with European customers and partners. The route is to cross the territory of Russia. 

The project provides for transit of cargos from North East China and South Korea  through the port of Dalian, Chinese Eastern Railway and Trans-Siberian Railway.  This includes both ready-made products for end users and components/materials to be used by production facilities operating the Russia and the EU.   

For instance, Samsung Electronics plant located in Vorsino industrial park, Kaluga Region, manufactures TV sets and home appliances supplied both to Russian customers and abroad (Ukraine, Belarus, Middle Asia and Trans-Caucasian countries, Kazakhstan and Mongolia). Components from China and South Korea are widely used at the plant. Currently components from Asia are delivered by sea transport, which takes more than 50 days.  The delivery period will be shortened by more than two times when the project is implemented.

Samsung has invested more than US$ 250 million in projects implemented in Kaluga Region. Its modern production facility was built in 2007 and currently it employs over 1,500 residents of the region. In the course of the meeting in Dalian the parties expressed their interest in promoting cooperation with Kaluga Region within the framework of New Silk Road project implementation.  As Kaluga Region has a beneficial position from the logistical point of view and its transport and warehousing infrastructure is being rapidly developed, it may play a significant role in the project implementation in the Russian Federation. 

Samsung plans to hold negotiations with the Ministry of Transport of the Russian Federation, Kaluga Region Government, and Russian Railways OAO to review the project from economic and political  points of view. The Russian institutions will be informed that China shows a high degree of interest in New Silk Road project implementation in the nearest future.

Source: Samsung  Electronics  Rus  Kaluga.