Beibu Gulf： A Transportation Hub Taking Shape

Wu Sheng

In January 2017， Guangxi Beibu Gulf Economic Zone formulated a series of development plans， including an important hub for the ASEAN international passage， a new pillar of the opening-up and development of southwestern and south-central China， and a gateway for the integration of the Belt and Road. Currently， the South Passage is the key in the construction of the regional transportation hub in the Guangxi Beibu Gulf Economic Zone.

In building the South Passage， it is essential to stimulate the existing infrastructure potential in western China， integrate Chinas domestic and international markets， and in particular， give full play to Guangxis unique advantages of its land and sea links with the ASEAN.

At the beginning of 2018， a train left Qinzhou for Malaszewicze in Poland， and a cargo ship set sail from Indonesia to Chongqing via Singapore. The events signify a positive sign in building the South Passage， a bright future of the normal operation of the two freight routes， as well as the tremendous opportunities for the integration of Belt and Road in the Guangxi Beibu Gulf Economic Zone.

From Qinzhou to Poland： New freight train route linking Beibu Gulf with Europe

On January 17， 2018， with the sirens wailing， a train loaded with electrical products and sheet metal headed for Malaszewicze in Poland at Qinzhou Port East Railway Station. This is the first freight train route linking Guangxi Zhuang autonomous region with the Europe.

Departing from Qinzhou， leaving China through Alashankou in Xinjiang and bound for Malaszewicze， the trip， with a total length of some 11，000 kilometers， will take 18 to 20 days， which has a clear advantage in terms of time and stability as it is 12 days shorter in comparison with marine transportation. It provides a more convenient access for ASEAN and Southern Chinese goods destined for Central Asia， Russia and Eastern Europe.

The launch of the Qinzhou-Malaszewicze freight train route opens up a new international channel of land and sea trade that connects ASEAN countries with Central Asia and Europe via Guangxi， southwestern and south-central China. It represents Guangxis full and faithful performance of its “three roles” entrusted by the Central Committee of the Communist Party of China （CPC）. As the 19th National Congress of the CPC took the Belt and Road Initiative as a priority， it also helps make a new ground in opening China further through links running eastward and westward， across land and over sea.

Being an important port city in the Beibu Gulf Economic Zone as well as the land-sea hub of the Belt and Roads South Passage， Qinzhou will further improve its support facilities and facilitation of custom clearance procedures by seizing the opportunity of the Qinzhou-Malaszewicze freight train route. It will cement cooperation with the countries and regions along the 21st Century Silk Road Economic Belt and integrate their resources to expand the supply channel. Besides， it will also make every effort to normalize the operation of the route and strive to build an efficient， convenient and cost-effective international trade channel with a satisfactory market prospect and competitiveness， so as to foster new drivers of economic growth.

Indonesia-Singapore-Chongqing： New route added in the South Passage

According to Lianhe Zaobao， in January 2018， the first batch of goods was shipped out northward from Singapore through the South Passage under the China-Singapore （Chongqing） Demonstration Initiative on Strategic Connectivity. It is also an indication that more international trade supply from Singapore ports are expected to be included in the South Passage， and helps bring more foreign trade supply at the same time.

The newly-opened passage is in the charge of China-Singapore Connectivity （Chongqing） Logistics Development Co.， Ltd. — a “light asset” company responsible for strategic planning under the China-Singapore （Chongqing） Demonstration Initiative on Strategic Connectivity. Last week， a cargo ship carrying industrial products departed from the Riau Islands in Indonesia， transited in Singapore Port before proceeding to Qinzhou Port， and went northward to Chongqing by rail.

Before the opening of the passage， these industrial products had to be shipped in bulk instead of by container from Indonesia to Chinas coastal cities， and were sent to buyers in western China through domestic trade， which apparently took a longer time.

In an interview with Lianhe Zaobao， Chen Sizong， Chief Executive of China-Singapore Connectivity （Chongqing） Logistics Development Co.， Ltd.， said that the new passage would be put into normal operation from March 2018， and it was aimed at those companies which intended to transport industrial products from Southeast Asia to western China.

He pointed out that despite the south-to-north supplies of goods along the passage， they only constituted part of domestic trade along the railways between Guangxi and Chongqing. In this regard， he thought that Singapore could give expression to its port network strengths to fill the shortage of foreign trade supply. Singapore could also help promote the construction of the South Passage by mobilizing more foreign trade supplies into it.

China-Singapore Connectivity （Chongqing） Logistics Development Co.， Ltd. is comprised of a consortium of four Singapore companies together with a consortium of six Chongqing companies. The Singapore companies include PSA International， Pacific International Lines， YCH Group and Kerry Logistics.

Integration of the “Belt” and the “Road” in Beibu Gulf Economic Zone

On January 12， 2018， in order to accelerate the construction of the South Passage， Guangxi officially released the Program of Guangxis Acceleration of the Construction of China-Singapore Connectivity South Passage （2018-2020） （hereinafter referred to as the Program）. The Program notes that Guangxi will work more closely with Chongqing， Gansu and Guizhou and put in place a cross-regional cooperation mechanism， so as to speed up the formation of a modern multimodal transportation network that connects the Belt and Road countries based on Guangxis coastal and border location.

The Program states that in building the South Passage， it is essential to stimulate the existing infrastructure potential in western China， integrate Chinas domestic and international markets， and in particular， give full play to Guangxis unique advantages of its land and sea links with the ASEAN. In this way， a passage that connects northwestern and southwestern China domestically and Southeast Asia， Central Asia and Europe internationally can be created， thus to better integrate the “Belt” and the “Road”.

Guangxi Beibu Gulf Economic Zone has both land and sea access to the ASEAN countries， which makes it an important hub and link between China and the ASEAN in carrying out economic and trade cooperation， promoting the Belt and Road Initiative and building a China-ASEAN community of shared destiny.

2018 is the 10th year of the implementation of Guangxi Beibu Gulf Economic Zone Development Plan approved by the State Council of China. In the past 10 years， Beibu Gulf Economic Zone has made remarkable progress in the construction of a regional transportation hub.

With the launch of Qinzhou-Malaszewicze freight train route and the new route in the South Passage， along with their normal operation in the near future， the transportation network in Beibu Gulf Economic Zone will be significantly improved. It will play a more important role in integrating the “Belt” and the “Road” and promoting regional economic integration.