Fifth Signatory on the Horizon for UN Rail Freight Agreement

INTERNATIONAL: Recently, China, Germany, the Netherlands, and Togo have come together to endorse the United Nations Convention on the Contract for the International Carriage of Goods by Rail.This initiative is designed to level the playing field for rail transport when moving freight between Europe and Asia.

This Convention was officially adopted in November 2023 by the UN economic Commission for Europe’s Working Party on Rail Transport. It’s now open for all UN member states to join. Once five countries give their nod of approval, it will take effect six months later; many nations are already showing interest.

The UNECE pointed out that rail has long faced challenges compared to othre freight transport methods between China and Europe due to its regulation under two different international frameworks: OTIF CIM from Western Europe and OSJD SGMS from Eastern Europe and Asia.

This new UN Convention aims to create a unified legal framework that connects these two systems where neither fully covers the entire route. Importantly, it will work alongside existing regulations that will still apply within their designated regions.

The UNECE also highlighted that implementing this Convention could considerably boost climate initiatives in freight transport.Rail is known for being much more environmentally friendly—producing greenhouse gas emissions about 5.7 times lower than road transport per tonne-km.