CEVA Logistics AG: The New Highway to the West

CEVA Logistics AG / Key word(s): Miscellaneous
CEVA Logistics AG: The New Highway to the West

27.11.2018 / 19:07

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Shanghai, 27 November, 2018 - After more than six months preparation, CEVA
Logistics Greater China has sent the first ever TIR (Transports
Internationaux Routiers) truck from Khorgos, China via Kazakhstan to Europe.
The trial run was on 13 November, 2018 and was successfully operated as a
joint initiative between CEVA Logistics, the IRU (International Road
Transportation Union) and CEVA's partners Alblas and Jet-rail. The truck
arrived in Poland on 24 November, with no disruption or Customs issues after
11 days on the road. The closing TIR at its final destination was after 13
days on 26 November.

The new road service will deliver a cost saving of about 50% compared to air
options. With a lead time door-to-door of between 10 to 15 days, it will be
30-50% faster than rail.

Customs sealed in Khorgos, the first TIR truck from China to Europe started
its 7,000 kilometers journey via Kazakhstan, Russia and Belarus to Poland in
the afternoon of 13 November. It was a historic moment when the truck,
operated by CEVA's partner Alblas International Logistics, left Khorgos to
cross the border into Kazakhstan.

"This is a day to remember. Together with our partners, we have trialed TIR
all the way to Europe today the very first time," said Kelvin Tang, Director
Road & Rail" at CEVA Logistics Greater China.

Undoubtedly contributing to the success of the Belt & Road Initiative in the
near future, the international customs transit system TIR became active for
the People's Republic of China in May 2018.

"Since then we started to investigate the possibility and feasibility of
road transportation from China to Europe in order to find an alternative to
the escalating air freight market," says Torben Bengtsson, Executive Vice
President of CEVA Logistics Greater China. "Thanks to the implementation of
the TIR system this year, and the great support of IRU, the Research
Institute of Highway Ministry of Transport (RIOH), and the Xinjiang
government, we were able to make this trial run happen together with our
partners Jet-rail International Transportation in Shanghai and Alblas
International Logistics in the Netherlands. The trial proves that the TIR
carnet issued in China is accepted in the transit countries en-route to
Europe. The Government, IRU, RIOH and many other parties worked together to
remove barriers and uncertainties.

"As a result we foresee a great future for road transportation from China to
Europe. We have a lot of customers waiting for the start of a regular
service. During the coming weeks we will work on some small details of the
service and then prepare to start regular operations as early as possible in
2019," Torben Bengtsson adds.

Umberto de Pretto, IRU Secretary General, congratulated CEVA Logistics and
its partners on the success of the trial: "This first TIR journey by road
from China to Europe is a win-win-win model for business, trade and
governments and will be a game changer for cross border transportation in
China. It shows that the system is secure and also highly competitive in
terms of cost and time relative to other modes of transport on similar
routes. It will boost trade between China and Europe, which will help China
and the countries along the Belt & Road route to reap the economic and
development rewards of international road transport. It is also a wakeup
call to European hauliers who can seize the opportunity to benefit from
round trip operations."


For additional information please contact:

Investors:
Pierre Benaich
SVP Investor Relations
[e-mail]
[phone]

Media:
Matthias Hochuli
Group Head of Marketing and Communications
[e-mail]
[phone]

Cathy Howe
Pilot Marketing
[e-mail]
Tel: [phone]

CEVA - Making business flow
CEVA Logistics, a global asset-light third-party logistics company, designs
and operates industry leading supply-chain solutions for large and
medium-size national and multinational companies. Its integrated network in
Freight Management and Contract Logistics spans more than 160 countries.
Approximately 56,000 employees are dedicated to delivering effective
solutions across a variety of industry sectors where CEVA applies its
operational expertise to provide best-in-class services. CEVA generated
revenue of $7 billion and adjusted EBITDA of $280 million in 2017. CEVA
Logistics is listed on SIX Swiss Exchange under ticker symbol CEVA. For more
information, please visit www.cevalogistics.com

IRU - the world road transport organization, and TIR
IRU is the world road transport organisation, promoting economic growth,
prosperity and safety through the sustainable mobility of people and goods.
Founded in 1948, IRU has members and activities in more than 100 countries.
TIR is the only global customs transit system for moving goods across
international borders. Supporting trade and development for more than 60
years, TIR has 74 contracting parties and is governed by the United Nations
TIR Convention and managed by IRU. TIR stands for "Transports Internationaux
Routiers".