Kazakhstan – Singapore global logistics solution, the Chongqing “Land-Sea” Corridor
The covid pandemic and the unfortunate war in Ukraine has placed constraints on global supply chains, leveraging technology to facilitate trade and investments along the CCI New International Land-Sea Trade Corridor (CCI-ILSTC), which connects Southeast Asia and Western China, is the objective of the Kazakhstan Singapore land sea corridor.
57 years ago, the young nation of Singapore was poorer than many African countries, yet the city sate has learned to adopt and embrace global trends.
Given the global logistics bottle necks and its impact on global inflation, Singapore working in close cooperation with Kazakhstan is taking measures to create the most optimal trade routes, among which the main one is the joint project with China – the Chongqing “Land-Sea” Corridor. Also known as The China-Singapore (Chongqing) Connectivity Initiative (CCI) coupled with a strategic focus on Kazakhstan.
Several western observers opined that China’s belt & road, was a road to nowhere and unfortunately too often just a debt trap. the Chongqing “Land-Sea” Corridor, on the other hand might be an important solution to a real logistics challenge.
According to Singapore’s MAS, the Kazakhstan – Singapore Chongqing “Land-Sea” Corridor. Has helped to catalyze US$3 billion in multi-currency financing deals amounting to over US$17 billion in cross-border deals since the CCI’s inception in 2015.
Land-Sea International Trade and Logistics Corridor has expanded its coverage to 315 ports in 107 countries and regions of the world.
Chongqing is a giant metropolis located in the southwest of China and, thanks to its strategic location, successfully connects 107 countries. It is an established transport artery connecting the densely populated markets of the Southeast Asian countries with the Eurasian continent.
According to Xinhua, since the opening in 2017, the number of TEUs transported from Chongqing via the New Land-Sea International Trade Corridor has risen from less than 3,000 to 112,000 in 2021, while the value of transported goods has risen over the same period from 580 million yuan to 18.7 billion yuan.
Considering the need to further develop the Chongqing “Land-Sea” Corridor, especially integrating with the EU markets, dealing with very high inflation, Singapore's global port company “PSA International” is considering a project of its entry into Kazakhstan in order to connect the business regions of Southeast Asia and Europe through Central Asia and China.
Now the timing of the project is good as global inflation needs better global logistics China’s belt and road might have been a problem looking for a solution, the Kazakhstan – Singapore global logistics solution is a real value add solution to the global logistics challenge.
Singapore’s PSA is a leading global port group with an international network of more than 50 coastal, rail and inland terminals in 19 countries. The world's largest ports in the cities of Singapore and Antwerp, Belgium are managed by PSA.
In particular, the “PSA International” project of a strategic nature provides for the creation of multimodal hubs in Kazakhstan, as well as the operational management of the sea and dry ports of Khorgos and Aktau.
Kazakhstan’s partner of “PSA International” in this Chongqing “Land-Sea” Corridor project is National company “Kazakh Railways” (KTZ),
"Soft infrastructure", primarily through the creation of a digital transcontinental corridor is expected to be a key feature of the Kazakhstan – Singapore global logistics solution.
The greater use of electronic trade documents along the CCI-ILSTC would make verification checks easier, reduce the incidence of fraud and human error, and ultimately lower costs ang global inflationary pressures. Kazakhstan, Singapore and Chongqing could work together to mobilize green financing and investments in a safe, sound, and orderly manner.
It is important to note that Chongqing is the most important node of the trade and logistics corridor between Western China and the ASEAN countries. At the same time, PSA International, investing in the development of this key route Singapore - Guangxi - Chongqing - Xinjiang - Europe, which accounts for the bulk of international cargo deliveries, receives appropriate subsidies from the PRC government as part of the development of the Belt and Road Initiative.
” Chongqing “Land-Sea” Corridor project is expected to have a high strategic potential for participating countries, especially during the current geopolitical tensions, trade restrictions and disruption to key supply chains also caused by the negative impact of the pandemic.
Collaboration in areas such as financial services, healthcare and logistics could be an offspring of the Kazakhstan Singapore Land-Sea” Corridor project., leading to a wide array of business opportunities.