BNSF railway company is expected to establish an office in Shanghai to become the first US rail firm to set up in the country.

The Shanghai office, to be opened soon, represents the growing importance of Chinese exports to BNSF, the second-largest rail freight company in the US.

"China is a key driver in BNSF's international business and we will continue to expand our network and services to accommodate that growth," said Steve Branscum, vice-president of BNSF, at a conference yesterday.

BNSF's business from China has been growing by more than 13 per cent annually since 2000.

China now accounts for 60 per cent of BNSF's international intermodal business, which adds up to 3 million containers.
BNSF, the world's largest intermodal rail carrier, moves 5 million containers and trailers each year.

Intermodal freight is transported using more than one means of conveyance.

A great proportion of its 24,000 clients, including Wal-Mart and Ikea, are shifting an increasing proportion of their manufacturing process to China.

"The Shanghai office will allow us to expand our presence in Asia, strengthen existing partnerships with key stakeholders in international trade and explore growth opportunities in Asian countries," said Branscum.

BNSF will use its Shanghai office to stay in closer contact with its customers, providing network information to Chinese ocean carriers, such as the China Shipping Group and COSCO.

The rail firm also has an office in Tokyo, currently its only one in Asia.

The company might invest in China's railway infrastructure or even establish joint ventures with local companies in the future, but will focus on expanding its domestic network in the US at present, said Branscum.

The company is poised to invest US$2.4 billion to expand its network at home this year, compared with US$2.2 billion spent last year.

With its 52,000 kilometres of rail, the company now serves all major US ports on the west coast and on the Gulf of Mexico.
According to Branscum, the US company will continue to expand its relationship with the Chinese Government, which is planning to spend US$155 billion over the next 10 years to upgrade its rail network.

BNSF signed a five-year memorandum of understanding relating to co-operation on rail transport with China's Ministry of Railways.

Under the agreement, both sides pledged to exchange information on best practices in railway management, operations, logistics and technology.

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