The Xinjiang Production and Construction Corps has actively integrated into the broader logistics planning for Xinjiang in recent years. It has charted a path forward by focusing on robust infrastructure, institutional innovation, and market-driven practices.
By coordinating its efforts with key logistics hubs like the Urumqi International Land Port Area and border crossings such as Khorgos and Alashankou, the Corps is bolstering Xinjiang's role as a cross-border logistics hub. This strategy is establishing a new pivotal point for opening up westward and forging a novel approach to overcoming challenges in cross-border logistics.
Infrastructure Breakthrough: Unblocking Key Cross-Border Arteries
Strategically located in the heart of Eurasia, Xinjiang is at the core of the Silk Road Economic Belt. The region handles over 70% of China-Europe freight train traffic via its western routes, boasting a dense cluster of ports and significant geographical advantages, providing inherent conditions for building a national-level cross-border logistics hub. However, its progress toward becoming a true hub has long been hampered by multiple practical issues, weakening its capacity for agglomeration and radiation.
Recalling earlier challenges, Fan Wen, a general manager of a logistics firm in Shihezi, noted that cross-border shipments from Shihezi to Central Asian ports once involved circuitous road routes, lengthy waits for railway marshalling, and queues at border crossings for cargo transfers. A single shipment could take over a week, incurring high losses and hidden costs. The Corps previously lacked dedicated cross-border corridors and distribution nodes, making it difficult to unlock its full hub potential.
The strategy to break the deadlock began by tackling bottlenecks. The Corps focused on bridging the railway gauge divide, constructing dedicated lines, and expanding the transport network, thereby reshaping the skeleton of cross-border logistics. A multi-point, land-and-sea linked cross-border channel network is now rapidly taking shape.
Shihezi secured the Corps' first TIR (Transports Internationaux Routiers) permit for international road transport, establishing a "door-to-door" cross-border transport network. From March 2025 to the present, it has completed 92 cross-border shipments totaling 1,735 tons, with a cargo value exceeding $17 million. This freight volume represents a 16.52-fold increase compared to the total of the previous four years.
In Kekedala, a dedicated broad-gauge international railway line with a ship bridge was constructed, connecting directly to the broad-gauge yard at the border port. This enables a single cargo transfer within China and direct broad-gauge access to Central Asia, completely overcoming the cross-border transshipment bottleneck caused by the 85-millimeter track gauge difference.
Digital and Intelligent Empowerment: From Disjointed Operations to Efficient Coordination
Following the hardware connectivity, digitalization and intelligent systems have become the core tools for breaking efficiency bottlenecks and reducing management costs. At the International Logistics Center of the Corps' Twelfth Division, a smart management screen displays real-time data on container bookings, yard scheduling, and waybill matching. Data flows seamlessly between the customs supervision zone, warehousing and distribution area, and the dedicated railway line, with drone inspections replacing manual patrols.
It is reported that the implementation of a multimodal transport yard management system has significantly improved customs clearance efficiency. He Jun, a relevant official at the logistics center, stated that post-intelligent upgrades, the entire chain—from yard operations and customs clearance to transport—is now coordinated. The simultaneous adoption of electric locomotives and photovoltaic energy storage systems caters to the long-term needs of cross-border operations.
The park facilitates linkages between Shandong and the Corps, enabling the westward export of domestically produced vehicles and light industrial goods, and the eastward flow of overseas minerals and agricultural products, creating a pattern of two-way circulation.
Li Yaxi, Party Group Secretary and Director of the Twelfth Division's Transport Bureau, emphasized that digital transformation will break down data barriers between departments, enterprises, and regions. This will enable integrated scheduling of cargo sources, transport capacity, warehousing, and customs clearance, thereby converting locational and channel advantages into hub agglomeration advantages.
Industrial Integration: Building Endogenous Momentum for the Hub
The Corps is deeply integrating cross-border logistics with specialized processing, commercial distribution, and industrial chain development. This addresses the underlying issues of "transit without value addition" and "distribution without agglomeration."
Following Shihezi City's inclusion in the first batch of national logistics hubs under the 14th Five-Year Plan, policy dividends have continued to materialize. The Corps' Development and Reform Commission, in collaboration with Shihezi City, has issued a specialized plan focusing on advancing cold chain logistics, multimodal transport, and international channel development.
Major projects like the dedicated Mashi Railway Line and the Wulanwusu Railway-Airport Logistics Park have been successively launched, forming a modern logistics system characterized by "channels + hubs + networks."
Zhang Yanjun, Director of the Shihezi City Development and Reform Commission, explained that the hub provides full-chain logistics services for industries such as new materials and advanced equipment manufacturing by linking with Xinjiang's land port-type and commerce-type hubs. This, in turn, aims to establish a supply chain organization center.
As Xinjiang's second-largest China-Europe freight train assembly center, the Shihezi hub's reach now covers 17 provincial-level regions and 51 cities domestically, along with 46 cities overseas. "Corps-manufactured" products like polyvinyl chloride and industrial silicon are now directly reaching Eurasian markets through this node.
Leveraging its broad-gauge channel, Kekedala City has established processing bases for minerals and agricultural products. Imported raw materials are processed locally to add value, and finished products are shipped to Central Asian markets nearby, forming a closed loop of "import processing + cross-border distribution."
The Twelfth Division is building an international market procurement center and an automobile trade logistics park, aggregating foreign trade formats involving complete vehicles, parts, and daily necessities. Domestically produced new energy vehicles are being exported in batches to Central Asia via the park, becoming a new engine for foreign trade growth.
A responsible official from the Foreign Trade Division of the Corps' Commerce Bureau recently noted that by using the logistics hub as an anchor, the Corps is attracting projects in sectors like corn-based biomanufacturing, light industry and textiles, and equipment manufacturing. It is facilitating the direct delivery of high-quality fruits, vegetables, and specialty livestock products to Eurasian supermarkets via cold chain logistics, supported by dedicated cold chain routes and bonded warehousing. This embeds logistics services into the entire chain of production, storage, and distribution, creating a virtuous cycle where industry drives logistics and logistics, in turn, nurtures industry.