NX Vietnam launches consolidation service using Vietnam's North-South Railway
-- Efficient and sustainable low-emissions logistics service for small-lot shipments --
Nippon Express (Vietnam) Co., Ltd. (President: Takushi Mogi, hereafter "NX Vietnam"), a group company of NIPPON EXPRESS HOLDINGS, INC. (President: Satoshi Horikiri), is enhancing its rail freight services on Vietnam's North-South Railway between Hanoi and Ho Chi Minh City by starting a consolidation service.
(Rail transport route)
(Containerized rail freight)
Background to service development
As logistics needs become more diversified and sophisticated in line with the rapid growth of the Vietnamese economy, demand is on the rise for a north-south logistics network to serve as an key route between manufacturing bases and consumption centers. In response, NX Vietnam launched a rail transport service in June 2024 connecting Hanoi and Ho Chi Minh City (approximately 1,700km apart) in about 48 hours(*1). This service has been well received by many customers as a high-quality service that helps reduce the environmental impact of logistics.
NX Vietnam has now launched an LCL (Less than Container Load) service to supplement its existing FCL (Full Container Load) service, utilizing its own warehouses as incoming/outgoing container freight stations (CFSs). Loading and unloading of containers will be performed in-house to ensure high-quality service.
This approach enables efficient and sustainable transport of smaller quantities of cargo that do not fill a single container, and provides more customers with flexible and cost-effective logistics solutions.
Overview of rail container consolidation (LCL) service
| Route | Between Hanoi CFS and Ho Chi Minh City CFS |
|---|---|
| Transport frequency | Twice a week (from Hanoi on Wednesday and Friday; from Ho Chi Minh City on Tuesday and Saturday) |
| Transport time | About 58 hours (between Quang Minh Logistic Center's CFS and Song Than Logistic Center's CFS) |
| CO2 emissions | Approximately one-fifth that of truck transport (*2) |
CFS locations
| Hanoi | Quang Minh Logistics Center (Quang Minh Industrial Park, Me Linh Dist, Hanoi City) |
|---|---|
| Ho Chi Minh City | Song Than Logistics Center (Song Than 2 Industrial Park, Di An Ward, Di An City, Binh Duong Province) |
Service features
| Small-lot cargo handling | Small quantities of cargo constituting less than one container load can be transported |
|---|---|
| High-quality service | In-house handling and warehousing of containerized cargo ensures high-quality service |
| Stable lead times | Less susceptible to road congestion, making supply chains more stable |
| Reduced environmental impact | Environmentally friendly transport service with reduced CO2 emissions |
| Cost efficiency | Lower costs for small-lot cargo shipments than other modes of transport |
| Range of transportable items | Heavy cargo can also be transported |
| Door-to-door delivery | Reliable in-house service from pickup to final delivery |
The NX Group will continue providing high-quality logistics services to meet the needs of its customers while working to cut CO2 emissions with the aim of achieving sustainable societies.
Related release
■ NX Vietnam launches north-south rail transport service in Vietnam
https://www.nipponexpress-holdings.com/en/press/2024/05-Jul-24-1.html
(*1) Transport time between Hanoi's Yen Vien Station and Ho Chi Minh City's Song Than Station; door-to-door transport will require additional transport time for pickup and delivery.
(*2) CO2 emissions for transport between Hanoi and Ho Chi Minh City are calculated using the NX-GREEN Calculator (a CO2 calculation tool).
https://www.nipponexpress.com/service/transportation/solutions/it/nx-green.html