Shipping Cars to Central Asia and Beyond

1 Used cars are shipped to other countries. We hold this truth to be self-evident. We all know this happens on a daily basis, but what are the cars being exported, where are they going, and what is the process like? The good people at West Coast Shipping near the Port of Oakland opened their doors and let me take a fascinating peek inside their busy operation. If you are a fan of cars, geopolitics, or freight logistics, then you are in for a treat. Make the jump to see what I saw and learned. First, a little background. West Coast Shipping was founded by a family from Kyrgyzstan, a landlocked, mountainous ex-Soviet republic ringed by China, Kazakhstan, Uzbekistan, and Tajikistan. The founders saw a niche in shipping American-based used cars to Central Asia. Currently, the hottest car in Kyrgyzstan is an American Lexus GX470. At first, the locals were satisfied with the domestically sold Toyota Prado. But once they experienced the Lexus version– with upgraded amenities, more luxurious ride, and the cachet of owning an “American” car– there was no turning back. Used GXs are gobbled up here and immediately shipped to Kyrgyzstan. Only 1 in 50 cars shipped to Kyrgyzstan is a sedan. The rest are SUVs. Three vehicles can fit in a 40 foot container. Four can fit in a 45 foot container. You don’t need a Harvard MBA to figure out which makes more money. However, there is a challenge. The containers leave Oakland and land at one of three ports in China, where they are loaded onto train platforms for the long trek to the Kazakh border. The challenge is that there are far fewer train cars that can hold the 45 footers. West Coast Shipping has an agent in China who has access to the longer train cars. The Kazakh border is also interesting. As a result of the Sino-Soviet split, the train gauges of the two countries are different and have to be tediously changed at the border. This New York Times multimedia piece is worth a look. Established shipping companies are waved through without delay. But if the Kazakh customs agent isn’t familiar with a new shipping company and its livery, there might be problems with the paperwork. We’ll leave it at that. My tour of the warehouse revealed hundreds of newer luxury cars and SUVs, classic cars, and a few exotica. But this captured my attention the most. It’s a mundane Mazda 626. It is very popular in Kazakhstan and parts are impossible to come by. So this beater is being shipped around the world just for parts. 2 Once the containers are emptied in Kyrgyzstan, the containers themselves are sold. The small nation does not really export anything so they are of no use for shipping. They are used for storage and as small kiosks at bazaars. If you are ever in the capital, Bishkek, you may very well see a West Coast Shipping-liveried container from California. The containers can be sold for more in China, but the cost of shipping an empty container to China is prohibitive. 3 And now for the tour of the warehouse. Customers run the gamut. An immigrant may have purchased a car and wants to ship it to mom in Mongolia. In order to export a car, a title is all one needs. Businessmen buy cars at auctions and send them to developing countries. At first, cars with salvage titles were popular. The thinking was that money could be made since labor to repair the cars is cheaper over there. But with parts hard to find (especially for luxury cars) and with the consumer over there getting more savvy (they use Carfax over there now just like us), exporters are steering away from salvage titled cars. 4 And there are other kinds of customers. Collectors and restorers buy classics in California and ship them to Europe. Rotterdam is a big access point. Dozens and dozens of VW microbuses are being swept up by Brits. Funny trivia: It is a given that if a car ends up in port in Lithuania, parts (batteries, emblems, windshield wipers) will disappear. Such losses from thieves is simply a cost of doing business. 5 There is also the regular car enthusiast who wants a new vehicle that is unavailable at home. A Kiwi just bought this new Corvette. A man in Kenya bought himself a new Ducati for his birthday and is having it shipped. Collectors also use West Coast Shipping to transport their prized possessions to concourses and historic races. The facilities are particularly busy the week before and after Pebble Beach. I’ve been invited back in August. I can’t wait. I also saw a gaggle of wooden boxes being sealed up, like in the final scene in Raiders of the Lost Ark. Brand new motorcycles were disassembled and headed for the Pacific Rim to bypass a 300% tariff. Loopholes. 6 This red VW appears to be the only one not headed for the UK. It has been modified by a specialty shop in California and will be a bicycle store delivery truck in Japan. There’s something very special about it. Perhaps our commenters who are also regulars on the Samba and VWVortex can educate us on its specialness. 7 There are people here in America buying up every single VW bus listed on Craigslist. It’s breathtaking. 8 Another nugget of geopolitical information I picked up: Used American cars can be found even in Turkmenistan. For a while, cars would be offloaded in Dubai, put on 18-wheelers, and driven to Turkmenistan via Iran. But because of U.S. sanctions, just transiting through Iran became verboten. Kyrgyzstan is about to see its first Can-Am Maverick (MSRP of around $20,000). 10 I ended the tour watching a few brawny and creative guys loading a 45 footer. Behind this GX are two more vehicles. A newer black Mercedes ML was going to be the final vehicle loaded into this container. It’s really like an intricate and expensive jigsaw puzzle. There are just millimeters of clearance and any damage after the long journey is unacceptable. The men were in the process of removing the ML’s hood. The SUV was not going to fit in the container with the hood on. 11 A big thanks to Alex and Steve at West Coast Shipping for their time and hospitality! Images source: Copyright 2014 Hooniverse/Jim Yu

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