07 Jul Along the Silk Road – Edition 1 – Hamburg, Warsaw and Moscow are At the Center of China’s Logistics Infrastructure

Hamburg, Warsaw and Moscow have all been highlighted as major hubs in the EU as a transportation center. Hamburg is connected to four motorways and is the most important railway junction along the Scandinavia route; Warsaw has a direct A2 motorway connection to Łódź, Poznań and ultimately with Berlin, while Moscow is Russia’s biggest air hub operating with four international airports. The Moscow railway hub is also the biggest in Europe which stretches over 2,700km.

Hamburg

Germany is China’s largest trade, investment and technology partner in Europe as well as the largest EU investor in China. As such, ICBC opened a branch office in Hamburg in June 2015, this move will not only strengthen both ICBC’s economic power, but also their manufacturing and import & export sectors. German auto giants Mercedes Benz and Audi as well as Taiwan’s electronics manufacturer Foxconn have also already announced their intention to use the new Harbin-Hamburg route.

 

zhengzhou-hamburg_container_train_route_m

image by Baltic Transport Journal

Port of Hamburg currently partners with three authorities in Asia, namely – Shanghai International Port, Shenzhen Municipal Port Authority and Yokohama Port Public Corporation. China is the biggest trading partner for the Port of Hamburg, accounting for nearly 3 million TEUs in 2014.

Warsaw

In Warsaw, land route from Suzhou to Warsaw has already been in use since October 2013. Warsaw metropolitan area is one of the largest national transportation junctions; it encompasses 6 national roads, 8 railway tracks of great importance and the main country airport.

One-belt-one-roaed

 

Poland has become a major touch point for China since the One Belt One Road initiative which is a development strategy proposed by the Chinese government that focuses on trade and cooperation primarily between China and the rest of Eurasia.

As China’s largest trade partner in Eastern Europe, around 20 freight trains run between China and Poland each week, carrying the likes of electronics, food and alcohol etc. In 2015, bilateral trade has reached US$17.1 billion.

Moscow

Apart from the four international airports and Europe’s biggest railway which links together 9 railway stations and over 50 fright and sorting stations, there is also the China-Mongolia-Russia Corridor, a development plan that has recently been signed to boost transport links and economic operation between the three countries.

Russia and China continue to work together to form a trade-economic cooperation. Most recently, Moscow and Beijing have agreed to increase bilateral trade to $200 billion by 2020, as Russia and China want to deepen the cooperation between banking institutions among the two nations.

Analysis

With so many rising opportunities presenting itself in the EU, Chinese enterprises are increasingly taking advantage of this unique advantage. In Hamburg alone, along with ICBC, 500 other Chinese companies have set foot in the German hub.

Bilateral trade between China and various European nations are expected to increase with the support of various government development plans. The OBOR strategy alone connects over 60 countries between Asia and Europe along its route, with the expected investment to be valued at $4 trillion.

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