One Belt, One Road...but how to choose the best route?
Assessing some of the decision-making tools available to policy makers when optimising new trade routes
With the launch of the “one belt, one road” initiative in 2013, China announced the ambitious goal of transforming regional political and economic landscapes over the coming decades by building a ‘Silk Road Economic Belt’ and a ‘21st Century Maritime Silk Road’.
Massive investments into these infrastructure networks have already taken place.
For the land-based routes, 11 Chinese cities have so far opened direct railway container services to European cities, and most of these are enjoying subsidies from the local governments. For the oceangoing routes, in recent years Hong Kong-based Cosco Pacific has continued to invest heavily in the Port of Piraeus (Greece), transforming it into an important hub port in southern Europe, covering the hinterland of middle and East Europe.
At the same time, China has cooperated with central and eastern European (CEE) countries to construct railways linking Budapest and Belgrade, the capitals of Hungary and Serbia, respectively. Upon their completion in 2018, the travel time by train between southern Europe and central Europe will be significantly reduced. With the development of these railway networks and the rise of the Port of Piraeus, the competitiveness of the new trading routes between Asia and central Europe has been dramatically improved.
It is paramount for policy makers and logistics practitioners to assess the potential of emerging trade routes so as to make optimal route choices
Against this background, it is paramount for government policy makers and logistics practitioners to assess the performance and potential of these emerging trade routes so as to make optimal route choices. But how to do it?