Russia’s rail monopoly RZD says that using Mongolia rather than Kazakhstan for transshipment of China-Europe rail cargo could save shippers 15 to 20 percent of their current costs.

RZD is introducing new rail services between China and Europe via Mongolia as transportation providers angle to capture growing demand for China-Europe rail from small- and medium-sized shippers as some large shippers, such Chinese e-commerce giant JD.com, shift more volumes to the mode. The new routes will mainly link the eastern Chinese provinces, including Shanghai, with Russia, according to a spokesperson for RZD.

RZD has begun routing shipments through Naushki and will soon offer other China-Europe rail services through Mongolia.

The savings would come from the faster transit times and the lower tariffs for rail transshipment in Mongolia compared with Kazakhstan. While passing through Kazakhstan to Russia from China can take 20 to 21 days, going through Mongolia would take only about 14 days, according to RZD.

Shippers will benefit from the faster transit times and the fact that transshipment fees through Mongolia for a container train of 20 to 25 containers are 30 to 50 percent less than the $70,000 charged for such movements through Kazakhstan.

RZD and Russian intermodal provider TransContainer have begun routing trains through Mongolia’s Naushki border crossing and plan to start services moving via other Mongolian border crossings in the coming months.

The Russian rail monopoly is increasing its presence on the China-Europe rail route, and at the beginning of the month began a new service for shippers of electronics in conjunction with Chinese Railways.

To facilitate business between the two rail operators and ease trade, the companies on July 1 will introduce electronic data interchange that will allow preliminary customs declarations for cargo moving through Russia.