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Xinjiang coal gets a sea outlet as first rail-sea train reaches Tangshan port

A new rail-sea corridor has started moving Xinjiang coal to China's coastal markets, cutting transport time from 28 days to about 10 and giving the inland region its first direct link to the east coast.

A first dedicated coal train from Xinjiang has arrived at Tangshan port in Hebei province, marking the official launch of a rail-sea corridor that gives the inland region its first direct outlet to China's coastal markets. The service, reported by the Chinese outlet Huxiu, combines rail transport through Shanxi with a sea leg from Jingtang port, cutting the round-trip shipping time from 28 days to about 10 days.

Xinjiang has long been China's most resource-rich but least connected coal region. While most other major coal-producing areas already had mature rail-sea links, Xinjiang relied almost entirely on rail, and its distance from the eastern seaboard pushed delivered costs so high that its coal was competitive only in the northwest and parts of central China, not on the coast.

The new corridor changes that. Coal now moves by rail from Xinjiang through Shanxi, where it is assembled into 10,000-tonne trains, then transferred to Jingtang port and shipped to the Yangtze delta and southern coastal provinces. The route is designed to run regularly, not as a one-off, with port and rail operators discussing how to make the flow permanent and to run iron ore and alumina back west on the return leg.

Why Xinjiang coal matters

Xinjiang is now China's fastest-growing coal-producing region. Output reached 553 million tonnes in 2025, double the 2020 level, and its share of national production rose from 6.93% to 11.44%. The region shipped 144 million tonnes to other provinces in 2025, an average annual increase of 33.7%, reaching 19 provincial-level regions. In the first half of this year it produced 259.5 million tonnes and sent 49.65 million tonnes by rail to other provinces, up 8.5% year on year.

Two billion-tonne production bases have been built at Zhundong and Hami, with average single-mine capacity above 5.5 million tonnes a year and 70% of output coming from open-pit mines. The region's predicted coal resources are estimated at 2.19 trillion tonnes, about 40% of the national total, according to research firm Shenwan Hongyuan.

The growth is policy-driven. China's 15th five-year coal plan, published by the National Development and Reform Commission and the National Energy Administration, names Xinjiang as one of five strategic supply bases and calls for faster construction of outbound rail capacity. The plan also sets a goal for coal consumption to peak by 2030 and requires new mines in most regions to be at least 1.2 million tonnes a year of capacity.

Cost still the bottleneck

Transport cost remains the main constraint on Xinjiang coal. The main Lanzhou-Xinjiang rail line, which carries more than 80% of the region's outbound coal, is running at saturation, and the two secondary lines have little spare capacity, according to Wang Chao, an engineer at China Energy's western railway company, writing in a study on Xinjiang's coal export prospects.

Wang compared delivered costs to Caofeidian port in Hebei: coal from Hami in Xinjiang travels 2,401 km and costs 401 yuan (about $56) per tonne in rail freight, while coal from Shuozhou in Shanxi, Ordos in Inner Mongolia and Yulin in Shaanxi travels 532 km, 984 km and 1,157 km respectively and costs 89 yuan, 164 yuan and 193 yuan per tonne. That cost gap is why Xinjiang coal has struggled to reach the coast, even though its pithead costs are the lowest in the country.

The new sea corridor is an attempt to close that gap. By 2030, Xinjiang is expected to add about 150 million tonnes of annual output, making it the core growth region for Chinese coal, while production in Shanxi, Shaanxi, Inner Mongolia, Ningxia and Gansu stays roughly flat, Wang said. The rail-sea route gives that extra output a way to reach the consumers who actually buy it.