Jusletter

Rail freight traffic between the European Union and their Eastern neighbours, Russia and China received an enormous potential, which still has to be used. Until today East-West and West-East carriage by rail must cross an invisible legal barrier due to the existence of two different legal regimes: Europe applies the COTIF/CIM Uniform Rules, while Russia, China and other Central Asian countries apply the SMGS Convention. The existence of these legal hurdles leads to interruption of the transport contract, entailing delays, additional costs and administrative burdens for the development of the New Silk Railroad. With the further development of China’s One Belt-One Road initiative, the interest in ready-to-use well-functioning legal solutions will be even stronger.