Kathmandu. China has built rail-operated trade corridors across the mountainous west. It has reshaped the transport map between Asia and Europe. At its center is Chongqing. It is a large inland metropolis that serves as a quick alternative to seafaring.
The effort aims to overcome the strategic barriers of the Suez Canal and the Strait of Malacca by 2023. The trains will transport goods from Southeast Asia to Europe in less than two weeks. This will reduce the shipping time by 20 days compared to sea shipping.
This Chinese initiative is both economic and geopolitical. Considering the sensitivity of global supply chains, a key component is the ASEAN Express. It is a freight train service launched in 2023. It connects Hanoi to Chongqing in 5 days. From there, the goods will arrive in Germany, Poland and Europe via land corridors in less than two weeks. In this way, it is considered an initiative like the Suez Canal. However, it has nothing to do with the sea.
Attempt to avoid risk
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According to a report in the South China Morning Post, the route ignores customs delays and other problems that are increasingly common in ports around the world. Rail transport emissions are significantly lower than airfares. In addition, this system reduces the risk of piracy or maritime disruption. China accounts for 25 percent of all Chinese vehicle exports.
The initiative is part of a broader effort by Beijing to reduce reliance on shipping routes, especially for those at risk of geopolitical tensions. The Strait of Malacca, the Suez Canal, and the Strait of Hormuz are centers of global trade. But the presence of the US and allied navies poses strategic risks.
Work started in 2013
The transformation builds on infrastructure developed under China’s Belt and Road Initiative, launched in 2013. Recent efforts have focused on strategic autonomy, diversification of transit corridors, and de-risking supply chains. However, it depends on Russia. The majority of China’s existing train fares in Europe pass through Russian territory.
In many cases, the train is faster than the sea routes. However, it is still not cost-competitive across all corridors. The early Belt and Road rail lines operated under government grants to compete with low sea prices. As these subsidies dwindle, operators are facing difficulties due to customs bottlenecks and tariffs.
China’s move emphasises the ‘Rail First’ model. Which reduces the congestion of the port. This is in line with China’s broader dual circulation strategy. It seeks to strengthen domestic supply chains while maintaining global integration. In the long term, Chinese officials are looking for the possibility of a polar Silk Road through the Arctic Ocean as ice levels fall.
