Germany and China Launch Bilateral Quantum Logistics Optimization Initiative
August 31, 2018
Bilateral Quantum Ambitions with a Logistics Focus
On August 31, 2018, the German Federal Ministry of Education and Research (BMBF) and the Chinese Ministry of Science and Technology (MOST) jointly announced a cooperative R&D effort to advance the use of quantum computing for industrial logistics optimization, particularly within port systems and multimodal supply chains.
The partnership, signed during the Sino-German Dialogue on Innovation in Berlin, seeks to blend China’s leadership in infrastructure modernization with Germany’s expertise in quantum algorithm engineering. Both governments identified logistics flow optimization—specifically scheduling, routing, and traffic prediction—as the near-term target for demonstrable impact.
Project Scope: Applying Quantum Algorithms to Port Logistics
The collaboration launched under the “Quantum Applications in Smart Logistics” banner includes:
Quantum annealing and gate-model algorithm research to address scheduling challenges in high-volume intermodal hubs like Port of Hamburg and Port of Ningbo-Zhoushan.
Optimization models for berth allocation, yard stacking, and rail-truck-port coordination.
Creation of a joint testbed environment, with Germany providing quantum programming teams and China hosting live logistics data from its port networks.
Early prototypes are to be tested within 24 months, leveraging Chinese logistics environments with real-world throughput challenges.
Key Institutions Involved
The bilateral initiative includes several prominent institutions:
• In Germany:
Fraunhofer Institute for Industrial Mathematics (ITWM): Providing simulation environments and real-time scheduling heuristics.
DFKI (German Research Center for Artificial Intelligence): Integrating quantum-enhanced reinforcement learning for dockside robotic coordination.
University of Cologne’s Institute for Theoretical Physics: Developing hybrid quantum-classical algorithms for constraint-based optimization.
• In China:
Tsinghua University, Department of Automation: Modeling container flow data into QUBO format suitable for quantum annealing systems.
Alibaba DAMO Academy (Hangzhou): Providing access to their proprietary logistics datasets for pilot testing quantum route optimization.
Port of Ningbo-Zhoushan Authority: Offering operational test zones for algorithm deployment and performance measurement.
This mix of state-funded research labs and commercial logistics operators provides the dual benefit of academic depth and real-time impact.
Quantum Tools in Use: From QAOA to Quantum Annealing
Both nations pledged access to quantum resources, though with different architectures:
Germany’s D-Wave 2000Q system (hosted at Jülich Supercomputing Centre) will be used for annealing-based optimization of dock scheduling.
China’s work with Rigetti Forest SDK and early-stage superconducting systems will contribute gate-model experiments on real-time truck routing.
Joint efforts will also explore variational quantum eigensolvers (VQE) and QAOA (Quantum Approximate Optimization Algorithm) for prioritizing high-throughput cargo lanes.
Crucially, each algorithm type will be evaluated against legacy classical scheduling models to quantify gains in solution quality, time-to-solution, and adaptability to real-time constraints.
The Stakes: Ports as Optimization Pressure Points
Port logistics remains one of the highest-impact application zones for optimization algorithms:
Delays in berth allocation or crane scheduling cascade across entire global trade lanes.
Misaligned trucking and rail routing leads to warehouse overflows, idle labor, and CO₂ waste.
Congestion or underutilized slots can cost millions daily.
Quantum computing offers a promising edge by simultaneously evaluating large combinatorial scenarios—potentially discovering better allocation strategies than classical solvers limited by serial processing power.
As China continues to build out its Belt and Road Initiative (BRI) and Germany refines its smart manufacturing (Industrie 4.0) strategy, the confluence of quantum and logistics becomes both geopolitically and commercially strategic.
The Politics of Quantum Collaboration
This 2018 partnership came at a time of both deep cooperation and rising tension between Western nations and China. While security concerns existed, both governments agreed that pre-competitive research into shared global challenges—like emissions from port congestion or traffic bottlenecks in Europe’s rail corridors—could benefit from joint innovation.
German officials noted that the collaboration avoids sensitive sectors like defense or encryption, focusing instead on civilian use-cases with clear dual-market potential.
Interestingly, despite the broader U.S.-China tech friction rising in 2018, this EU-China agreement moved forward with support from the European Quantum Flagship, which acknowledged its relevance to international benchmarks in logistics performance.
Beyond the Lab: From Research to Commercial Deployment
While the initial joint quantum work remains academic, both nations view eventual commercial adoption as a core outcome.
German logistics software providers like Inform GmbH and Transporeon have expressed interest in incorporating quantum-accelerated backends once stability and performance thresholds are met.
On the Chinese side, Cainiao Logistics (Alibaba’s fulfillment network) may eventually deploy the quantum optimization modules in its route management platform, ET Logistics Brain.
By focusing first on port optimization and truck-barge scheduling, the collaboration seeks early wins that can then cascade across upstream and downstream segments of global trade networks.
Environmental Dimensions: Quantum for Greener Ports
Port congestion and inefficient scheduling are significant sources of unnecessary emissions. According to a 2018 EU report, up to 15% of dockside engine fuel is wasted during idle waiting or inefficient load sequencing.
By applying quantum algorithms to predict and optimize truck arrivals, barge timing, and crane throughput, Germany and China aim to:
Reduce idle emissions
Smooth peak congestion curves
Maximize low-emission transport modes (rail, barge) over high-emission trucking
This brings a sustainability angle to what might otherwise be a purely economic efficiency effort—further aligning the collaboration with global climate goals.
Early Milestones and Next Steps
The joint announcement on August 31, 2018, included a commitment to:
Deliver proof-of-concept optimization models by Q3 2019
Create a public research dataset from anonymized container port logistics flows
Propose a joint quantum logistics track at the 2019 Hannover Messe and China Hi-Tech Fair
This marks one of the first publicly-declared international efforts to explore quantum computing as a logistics solution—not just a scientific curiosity or defense asset.
Conclusion: A Blueprint for Quantum-Ready Trade
With global supply chains growing in complexity and vulnerability, the ability to optimize flow, scheduling, and coordination at the edge becomes mission-critical. Germany and China’s August 2018 quantum initiative offers a compelling model: grounded in logistics realism, backed by state funding, and oriented toward tangible commercial deployment.
As quantum hardware matures, these early algorithmic experiments in ports and terminals may well be the proving ground where the promise of quantum meets the urgency of global trade.