LogForum 2020, 16 (2), 193-207

> Scientific Journal of Logistics < http://doi.org/10.17270/J.LOG.2020.403

http://www.logforum.net p-ISSN 1895-2038 e-ISSN 1734-459X

ORIGINAL PAPER

THE NEW SILK ROAD: OPPORTUNITIES FOR GLOBAL SUPPLY

CHAINS AND CHALLENGES FOR FURTHER DEVELOPMENT

Norbert Wagener1, Bernard Aritua2, Tong Zhu2

1) Poznan School of Logistics, Poznań, Poland, 2) The World Bank Group, China

ABSTRACT. Background: Efforts to revive the New Silk Route from Europe to Asia have been on-going since the
late 1970s. However, the launch of the Belt and Road Initiative (BRI) of the PR China in 2013 has given new impetus to
Europe-Asia connectivity. Between 2014 and 2018 the number of block trains between China and Europe (including
Russia) increased from 298 to 4,982 per year. Will this trend continue? Which bottlenecks and challenges appear? What
are opportunities for respective countries, policy makers, shippers and logistics operators? The paper contributes to the
scientific question of further and sustainable segmentation of intermodal transport markets in the context of global supply
chains.
Methods: Based on a literature review and interviews with logistics operators and shippers the authors analyze the
present design and operational parameters of the intermodal land bridge traffic system, major challenges and bottlenecks
and propose measure how to enable further growth and to improve the sustainability of this traffic.
Results: Main issues of the further development of the New Silk Road Europe China are technological innovations,
digitalization of supply chains, optimizing of intermodal transport and gateway concepts, corridor management and new
trading patterns with e-commerce.
Conclusions: Although this intermodal land bridge connection will likely continue to be a niche market, it offers
considerable transit time and cost savings for specific types of freight where air freight is too expensive and maritime
logistics is too slow. At higher freight costs compared with the sea freight and lower fares than air cargo this is especially
interesting for high value cargo and the Northern provinces of China; also for opportunities in Central Asia, and the
Caucasus. The new transport route promotes not only investments into production sites for export at locations in the
Northern provinces but also opens new opportunities for European exports of industrial goods and FMCG for the
growing middle class in China. The total logistics costs from the viewpoint of a shipper can be more competitive via land
bridge than via sea. Both production and distribution networks of large companies (e.g. BASF, HP, BMW) and small and
medium sized companies (here especially through e-commerce) can benefit from a further integration of markets and
globalization of supply chains.

Key words: New Silk Road, Belt and Road Initiative, Global Supply Chains, Intermodal Transport, Digitalization,
Corridor Management.

A part of this study was presented as oral presentation at the „8th International Logistics Scientific
Conference WSL FORUM 2019” in Poznan (Poland), 18th-19th of November 2019.

Kazakhstan, Kyrgystan, Turkmenistan,

INTRODUCTION Tajikistan, Uzbekistan, Iran, the Caucasus and
Turkey. Over time the routes and names
“Silk Route” is a term describing a network changed. Nowadays the “New Silk Route”
of land based trade routes, formerly with (also “Iron Silk Route”) covers this historical
caravans between China and Europe initiated Southern route but also a Central route via
during the Chinese Han Dynasty (207 BC to Kazakhstan and Russia as well as Northern
220 AD). These trade routes cross China, routes via Mongolia and Russia (Fig. 1).

Copyright: Wyższa Szkoła Logistyki, Poznań, Polska

Citation: Wagener N., Aritua B., Zhu T., 2020. The New Silk Road: Opportunities for Global Supply Chains and Challenges
for Further Development. LogForum 16 (2), 193-207, http://doi.org/10.17270/J.LOG.2020.403
Received: 06.11.2019, Accepted: 13.01.2020, on-line: 30.03.2020.
,
Wagener N., Aritua B., Zhu T., 2020. The New Silk Road: Opportunities for Global Supply Chains and
Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

A major backbone is the Trans-Siberian efficient block trains, fixed schedules and very
Railway whose construction started in 1891 competitive transit times. The growing foreign
under the Russian Tsar Nikolaus III and trade between China and Europe, the
connects Moscow with Vladivostock at the industrialization of North China and the
Pacific. With 9,289 km it is the longest railway increased reliability of intermodal rail
in the world. At the eve of containerization in connections were the main drivers of this
the 1970s of the 20th century this route gained development.
importance for rail container transport from
Europe (mainly Germany, Switzerland and Especially the introduction of time table
Finland) to Russia and China. Since the related train schedules and reliability of service
beginning one can recognize steady were the very preconditions to integrate this
improvements of operation from inefficient route into supply chains of intercontinental
waggon loads, on demand traffic and production and distribution networks.
unpredictable transit times towards more

Source: Beifert, et al., 2018

Fig. 1. Eurasian Corridors

trains between China and Europe (including

from / to Russia and Central Asia) increased
from 80 to 6,363 per year. As of June 2019,
DEVELOPMENT OF THE CHINA – a cumulative number of 17,000 China-Europe
EUROPE LANDBRIDGE TRAFFIC block train trips was completed reaching 53
cities in 16 countries via east, middle, and west
The “New Silk Route” has experienced gateways respectively Manzhouli, Erenhot, and
a dynamic rise since the start of the BRI of the Khorgos [Belt and Road Portal, 2019].
PR China in 2013. Physical connectivity and
trade are prioritized by BRI along with other 78% of all block trains from / to China
aspects including policy, finance, and culture. relate to Europe. The Chinese government's
From 2013 to 2018, the total value of goods forecast that around 5,000 block trains will
trade between China and BRI countries travel to Europe in 2020 has already been
exceeded US$6 trillion. As a consequence, reached in 2018. With an average capacity of
logistics has been impelled. Especially, 90 TEU / train, this equates to some 450,000
between 2013 and 2018 the number of block

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Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

TEU in both directions. The unbalance of the

traffic could be reduced continuously.

Source: Belt and Road Portal, see https://www.yidaiyilu.gov.cn/ydylcylznzd/cjc/102467.htm

Fig. 2. Number of block trains between China and Europe (including Russia)

Source: Chinese Railways, https://card.weibo.com/article/m/show/id/2309404326026917355445

Fig. 3. Number of block trains (Eastbound / Westbound) between China and Europe (excluding Russia)

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Wagener N., Aritua B., Zhu T., 2020. The New Silk Road: Opportunities for Global Supply Chains and
Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

INTEGRATION OF THE NEW SILK With this specific time / costs ratio the rail
ROUTE INTO GLOBAL SUPPLY services between China and Western Europe
CHAINS serve a special market segment for more time
but less costs sensitive commodities than in sea
The “New Silk Route” opens new freight, especially to/from Northern China and
opportunities for global supply chains as well inland destinations in Western Europe.
as for the regional development in the northern
provinces of China but also for developing According to a recent study it is estimated,
regions in transit countries along the corridors. if cargo sent by ocean vessel had a value
Multinational companies and exporters benefit higher than € 85,000 per TEU, it would be
from the new rail based corridors more cost-effective to shippers to send it by
complementing the established sea and air rail. This study comes to the conclusion, that of
services between China and Europe. Picture 4 the two-way sea freight of forecasted 40
shows that the time / costs – ratio of rail million TEU (including empty containers) in
shipments lays between air and sea transport, 2040, around 2.5 million TEU could transfer to
i.e. half of the time of sea freight for one third rail [Steer Davies Gleave, 2018].
of the costs of air freight.

Source: Beifert, et al., 2018

Fig. 4. Estimation of the standard TEU container shipment from China (e.g. Chongqing) to Western Europe (e.g.
Duisburg, Germany)

0,4% 1,5%
Trade
26,5% 71,6%
Value

1,6% 0,1%0,3%
Trade
98,0%
Volume

0% 20% 40% 60% 80% 100%

Air Road Rail Sea

Source: World Bank Internal Analysis

Fig. 5. Composition of China-Europe Freight by Value and Volume by Transport Mode (2016)

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Wagener N., Aritua B., Zhu T., 2020. The New Silk Road: Opportunities for Global Supply Chains and
Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

For the foreseeable future, the majority of of private cars and components as well as of
freight by volume will continue to use engineering products (engine parts, pumps,
maritime routes. However, for the niche electrical components etc.). These
markets, the land bridge offers an interesting manufactured products constituted 50% of
alternative. As of 2016, about 98% of Europe- total freight by volume. Other notable products
China freight is moved by maritime transport include chemical products and timber by
with aviation and railways accounting for 1.6% products (paper and pulp). The reverse cargo
and 0.3% respectively. Air freight dominates from China to Europe is made up of
high value goods. Although constituting 1.6% machinery, equipment, and industrial products
of total freight volume, air cargo makes up which make up about 55%. Others include raw
some 27% of value of freight. The opportunity minerals and chemical materials, construction
exists for freight between € 6,000 to € 15,000 materials, clothing, textiles, and footwear. All
per ton to use the rail-based land bridge. The these major freight categories are niche freight
challenge is making this alternative types suitable for containerization that would
mainstream. normally not go by air freight due to the costs
of transit but which moving by ship would take
For transit rail freight between Europe and longer than most shippers would prefer.
China, further analysis shows that most of
freight coming from Europe to China consists

EU to China China to EU
50% 56% Machines, Equipment, Industrial Products

18% 13% Metals and Metal Products

10% 7% Finished Chemical Products

6% 8% Mineral and Chemical Raw Materials

8% 2% Cellulose, Paper, Printed Products
0% 6% Glass, Ceramics, Construction Materials
0% 5% Clothing, Footwear, Textile Products
3% 0 Timber, Cork and Timber/Cork Products
2% 1% Finished Food Products
0% 2% Textile Fiber, Fabrics, Raw Hide

2% 0% Others
1% 0 Food and Agricultural Raw Materials

-60% -40% -20% 0% 20% 40% 60% 80%

Source: World Bank Internal Analysis

Fig. 6. Commodity Structure of EU Railway-Carried Exports to/Imports from China (2016)

In the current situation, containers remain Therefore, any discussion of infrastructure and
the preferred method of delivery of freight logistics needs for transit freight between
between Europe and China. The use of Europe and China must take place, primarily,
containers guarantees preservation of cargo, in the context of intermodal freight solutions.
standard dimensions, reduced packaging costs,
accelerated cargo handling, and can facilitate In a globalized economy production sites of
unified shipping documents and forwarding. large multinational companies or collaboration

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Wagener N., Aritua B., Zhu T., 2020. The New Silk Road: Opportunities for Global Supply Chains and
Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

networks move over time as a result of seeking The plants produced 400,000 vehicles in 2017.
optimum profitability. Also consumption The new plant will produce fully electric,
behaviors change with increasing welfare. As partly electric, and conventional vehicles on
a result, international trading patterns may the same line [Industrial Equipment News,
change gradually or even totally in the future. 2018].
Therefore, predicting future patterns in freight
transport is very difficult . Logistics strategists The first BMW container train was
in multinational companies seek to plan their launched in 2011 as a private company train.
supply chains as cost efficient and as flexible About 8,000 different car components are
and agile as possible. International transport carried over the 11,000 km route from Leipzig
operators and logistics service providers are in and Regensburg to China, for assembling in
need to offer alternatives and permanent the joint venture company BMW Brilliance in
adjustments of their services. In this respect the Shenyang. Now the train needs 17 days only
“New Silk Route” should not be seen as (20 days door-to-door) and runs daily on the
a point to point corridor between Europe and relation Leipzig – Shenyang. Compared with
Asia only but as a comprehensive transport airfreight the rail transport saves 150,000 tons
network connecting numerous locations in CO2 per annum. The train is operated by DB
more than 40 countries in Asia and Europe Schenker and is open for third clients also.
which allows a high degree of flexibility in (Railways, 2016) German car manufacturers
changing supply chains and distribution to send about 63,000 cars CKD (completely
markets. knocked down) annually for further
assembling in China in order to avoid high
Example: BMW supply chain Leipzig import duties. [Handelsblatt, 2019] With the
(Germany) - Shenyang (China) new factory in Shenyang for electric cars the
import of components may be expected to rise
An example for changing trade patterns and thus reducing the imbalance of the trade. These
corresponding adjustments of supply chains is dedicated company trains between production
the development of BMW in China. The sites serve as “warehouses on wheels” within
country is BMW's largest single sales market, Just-In Time international supply chains.
with 560,000 vehicles sold there in 2017. 100% reliability is a very precondition for
BMW plans to invest 3.5 billion € in China, in production planning systems and sales
particular in new and existing plant facilities in programs.
Shenyang, increasing production capacity to
650,000 vehicles a year from the early 2020s.

Source: Belorussian Railways, 2019

Fig. 7. Route of the BMW company train between Leipzig and Shenyang via Brest and Zabaikalsk

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Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

lack of systematic top-level design and

regional coordination has led to inefficiency in
OBSTACLES AND CHALLENGES
terms of railway capacity utilization and
resource allocation.
The lack of interoperability of railways in
terms of legal, operational and technical terms
Different technical systems of railways
is a major historical obstacle for traffic along
the routes. But there are also capacity,
economic and financing constraints which Different gauges, electricity systems, train
need to be tackled. lengths, signaling and rule books are the main
technical obstacles. For example on the route
from Duisburg (Germany) to Lanzhou (China)
Lack of systematic design and coordination
depending on the routing 77% to 95% is
double track and 68% to 95% is electrified.
There are over 60 cities operating
westbound block trains to Europe. All these
routes are managed by local governments. The

Table 1. Technical parameters of different routes between Duisburg and Lanzhou

Sections of the route Distance, Double track, Electrified, km*

km km
TransSib – Kazakh route
Duisburg – Moscow 2,363 2,363 2,363 with 3kV DC and 25kV AC 50Hz
Moscow – Dostyk 4,353 3,514 3,514 with 3kV DC and 25kV AC 50Hz
Dostyk – Lanzhou 2,402,3 1,676 295 with 25kV AC 50Hz
Total Duisburg Lanzhou 9,118,3 7,553 6,172
TransSib – Mongolian route
Duisburg – Moscow 2,363 2,363 2,363 with 3kV DC and 25kV AC 50Hz
Moscow – Zamyn Uud 7,021 5,654 5,649 with 3kV DC and 25kV AC 50Hz
Zamyn Uud – Lanzhou 2,645 1,781 1,857 with 25kV AC 50Hz
Total Duisburg Lanzhou 12,029 9,798 9,869
TransSib – Manchurian route
Duisburg – Moscow 2,363 2,363 2,363 with 3kV and 25kV50Hz
Moscow – Zabaykalsk 6,660 6,442,4 6,442,4 with 3kV and 25kV50Hz
Zabaykalsk – Lanzhou 4,033 3,579 3,042 electrified with 25kV50Hz
Total Duisburg – Lanzhou 13,056 12,384,4 10,201,2
Source: European Commission DG TREN, 2012

Source: UNESCAP

Fig. 8. Illustration of Existing Rail Routes Connecting Western China to Europe

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Wagener N., Aritua B., Zhu T., 2020. The New Silk Road: Opportunities for Global Supply Chains and
Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

For example, the Russian railway lines on transshipment facilities. The response by
the TSR are electrified and double tracked with operators has been to look for alternative end-
several of the remaining sections in process of points in Europe, such as Lithuania, Finland
electrification. The main constraint is in and Kaliningrad until capacity at the main
Mongolia were the lines are single tracked and crossings is increased.
in poor condition.
Train length restrictions
In general, however, since transit trains
travel on scheduled services, the railways in The length of trains composed by various
Russia and Kazakhstan are more than able to railway companies depends on a number of
accommodate the containerized services at factors: length of station tracks, train weight,
current volumes. Container transit through locomotive power, route profile, technical
Belarus runs through an electrified double- capabilities of route legs (crossing
track section. Moreover, some $2.5 billion points/stations, side tracks, passing tracks and
were invested in 2011–2017 in projects way stations, whether automatic block systems
designed to enhance the Belarusian Railways’ are employed, intermediate light signals),
capacity, including a $700 million investment station track plans and profiles, shunting work
in the development of Belt and Road routes. conditions at individual stations, technical and
To deal with the congestion on the European technological capabilities of intermediate and
railway network, some shippers have set up line stations, marshalling yards, etc. The length
distribution centers to complete the final leg by of the train determines the load - in this case,
truck. This is likely a short-term solution. In the number of containers loaded onto container
the long run, on-going investments in Polish platforms. Typically, most trains from China
railways and the rest of the EU rail network bound for Europe are 801m long. This is not
will alleviate the capacity constraints on the a problem until the trains get to Poland which
networks. However, it is likely that in the according to applicable norms and regulations
medium term this will affect the level of cannot accommodate trains exceeding 600 m.
service and cap the potential growth in Therefore, as part of the transshipment the
throughput [Bernard Aritua, 2019]. train-lengths must be reduced while the
remaining containers wait at the marshalling
Quality and capacity of crossing point between yard for the next train [Aritua, 2019].
Brest in Belarus and Małaszewicze in Poland
Railway Track Gauge changes
Most trains on the Northern routes access
Europe through the Belarus-Poland link. The The difference in railway track gauges
importance of Belarus has been magnified by between former USSR countries (1,520 mm),
the breakdown of political relations between the PRC (1,435 mm), and Western Europe
Russia and Ukraine – which would otherwise (1,435 mm) requires the transshipment of
serve as a secondary entry point to Europe. cargoes or exchange of bogies at border
Before the transit freight between Europe and crossing stations. Three main options exist to
China increased dramatically in 2016 an increase interoperability: (a) transshipment
average of 5 trains per day crossed the border from rolling stock running on 1,435/1,520 mm
from Belarus to Poland at the Belarus- gauge to rolling stock running on 1,520/1,435
Małaszewicze crossing. By the end of 2017 the mm gauge; (b) use of variable gauge rolling
number of trains exceeded 10 per day. This has stock, enabling seamless transition from one
proved to be more than the crossing can gauge to another; (c) bogie exchange at an
efficiently handle. Due to change in railway interchange station. At present, the least cost
gauge, all freight needs to be transshipped and option is transshipment but this relies on the
because the railway infrastructure, locomotive capacity of siding tracks and gantries [Aritua,
fleet, and rolling stock have not been upgraded 2019]. A China-Europe block train goes
for a long time, this crossing is an impediment through two transshipments on average before
to free flow traffic. As traffic has increased, reaching a final destination, adding 50% of
this has placed considerable strain on the operational cost [Jiaoe, 2018].

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Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

Source: Jiaoe, 2018

Fig. 9. Rail Track Gauges in BRI Countries

Hungary, and Slovakia use the Agreement on

Administrative & legal obstacles International Goods Transport by Rail
(SMGS). The use of the CIM/SMGS common
There are some challenges related to border consignment note gives a strong competitive
and customs formalities, however, feedback edge to railway shipments through Eurasian
from forwarders and logistics companies report space. However, more work needs to be done
that these do not currently represent a serious to standardize normative documents and
barrier for transit rail freight and trade. Most technical regulations used in Eurasian
countries in the region have started pursuing countries (rules for shipping various types of
a coherent policy designed to standardize rules cargoes, rolling stock operating parameters,
and documents to minimize the time required environmental standards, etc.). For Eurasian
to complete formalities. These efforts are railway services, implementation of the
codified in agreements within the Eurasian CIM/SMGS common consignment note in
Economic Union and Trans-Asian railway electronic form is assessed to be the biggest
agreements. potential source of bottleneck alleviation that
would reduce delays and economic losses.
Insufficient standardization of shipping [UNESCAP, 2017] Legal and regulatory
documents and technical regulations remains systems are being harmonized for the transit
the main administrative and legal obstacle to freight through the Eurasian Economic Union,
the increase of freight along the whole route. yet additional coordination between the
Railway freight traffic is regulated in EU Eurasian Economic Union and China would be
countries by the Convention concerning advantageous.
International Carriage by Rail (COTIF). CIS
countries, the Baltic States, Albania, Iran, the
PRC, the DPRK, Vietnam, Mongolia,

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Wagener N., Aritua B., Zhu T., 2020. The New Silk Road: Opportunities for Global Supply Chains and
Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

Economic & financing challenges / bundling hubs connected by train connections

further on. More cargo could be attracted, train
In order to promote regional development and frequency could be increased, more stations
to meet freight volume targets Chinese could be connected and finally costs could be
province governments subsidize block train reduced.
costs. Subsidies range from under 50 % to
about 75 % of the unsubsidized costs [World Małaszewicze (Poland) is a well- suited
Bank Group, 2019]. The Chinese government location for such a gateway function since
is going to reduce these subsidies continuously there is a change of track width between 1,520
which challenges transport operators and their mm / 1,435 mm. Also the different maximum
customers to find new solutions to make block train lengths of up to 955 m in Belarus and of
trains more economical. The growing traffic 600 m in Poland require the marshalling of
and the need for more efficient operation waggons and consolidation of new segmented
require big infrastructure investment and rail resp. consolidated trains to Europe resp. to
rehabilitation projects which go beyond the Belarus. Under the provision of adequate
financial possibilities of investors or infrastructure capacities a future gateway
governments, especially of smaller countries. concept in Małaszewicze could serve as a high
Also megaprojects bear high risks which need performance mega hub connecting high
to be controlled. capacity and high frequency block trains from
Asia with lower capacity and high frequency
Table 2. China-Europe Block Train Subsidy by province trains further on to several different locations
in China (2018)
in Europe and respectively vice versa. Such
City Subsidy to China-Europe Block Train a mega hub could serve several incoming and
Harbin, Xi’an, US$3000 per Forty-foot Equivalent Unit outgoing trains by direct transshipment of
Hefei (FEU) containers between trains without marshalling
Chengdu,
Chongqing, US$7,300-7,500 per FEU of waggons.
Guangzhou
Suzhou Corporate income tax refund
Chongqing Land resource and corporate income tax
Also industry related gateway concepts are
refund feasible. BASF is planning such a gateway for
Ministry of Finance of China set a subsidy of US$0.8 per Asian traffic in Schwarzheide in the Eastern
FEU per km as the national guideline
Source: China Ports and Harbours Association, 2019, China
part of Germany.
Business Journal, 2019
Trains from Western, Northern and
Southern Europe will be directed to
OPPORTUNITIES FOR THE FUTURE Schwarzheide where containers are
transshipped to trains serving different
How could the traffic become more locations in Eastern Europe and Asia. This
efficient and profitable in order to compensate enables a higher efficiency and frequency of
subsidies? services.

Gateway concepts and high performance Significant impulses for Schwarzheide as

terminals a gateway are provided by developments in the
Chinese market. At present, rail transport of
Gateway concepts for container trains dangerous goods on container trains in China
would reduce costs further (like airline hubs) is not yet possible, as regulations prevent this.
through bundling of cargo flows on the main According to industry insiders, the opening for
route. Also the last mile transport per road the transport of dangerous goods is expected.
could be reduced. Nowadays trains go to In addition, BASF continues to invest in China
Hamburg and Duisburg and then the on- and expand the network of production sites. In
carriage into the opposite direction backwards Guandong, the BASF Group is planning
to Berlin etc. is on road. More Eastern a production site with an estimated investment
gateways (e.g. in Małaszewicze (PL) or in of approximately $ 10 billion. Completion is
Schwarzheide (D) could serve as consolidation scheduled for 2030 [Hofmann, 2018].

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Wagener N., Aritua B., Zhu T., 2020. The New Silk Road: Opportunities for Global Supply Chains and
Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

Source: BASF, cited in Wagener, et al., 2019

Fig. 10. Intermodal terminal Schwarzheide (Germany) as a future gateway to Eastern Europe / Asia in the BASF
production network

of express cargo in Germany, also for SME

Corridor management export.

Especially on the Trans-Caspian route the Increasing capacity of containers

service is too expensive and not reliable.
A better co-operation of countries and railways Nowadays maritime ISO containers prevail,
and a corridor management would be of but in land transport the 45’ pallet wide high
benefit. On the 1520 mm countries (Russia, cube container could offer a larger capacity.
Kazakhstan, White Russia) the company “The 40’ standard container can carry 22 pallets
United Transport and Logistics Company – (1 layer), 45’ pallet wide can carry 26 Euro
Eurasian Rail Alliance” (JSC UTLC ERA) as pallets (80 x 120 cm). This would increase the
a joint venture of the Kazakh, the Russian and capacity by almost 20%.
the White Russian railways operates as a joint
operator of block trains running through their Expanding the markets for landbridge
territories. Also in the European Union rail container traffic
freight corridors are defined and managed
jointly by the European rail infrastructure More volume on the landbridge routes
providers. could be generated through nodes on the routes
connected by antenna routes which serve as
Reduction of empty returns from Europe feeder connections to middle size
through more balanced trade agglomerations, like a “fishbone”. Also to
open the rail market for dangerous goods on
In 2018 the Eastbound trade was 1/3 less Chinese side would boost the demand
than the Westbound trade, this results in higher considerably. This higher traffic volume would
rail freight per container and costs for result in lower costs through economy of scale.
returning empty containers. A solution is to
attract more FMC (Fast Moving Consumer Digitalization and Blockchain
Goods) Eastbound through e-commerce
platforms and consolidation / containerization

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Wagener N., Aritua B., Zhu T., 2020. The New Silk Road: Opportunities for Global Supply Chains and
Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

Information technology has already POLICY AND FINANCIAL

improved the operation on the landbridge IMPLICATIONS AND
routes considerably. Containers can be RECOMMENDATIONS
equipped with sensors and real time
information via GIS can be provided to the 1. It is important for countries along the new
shippers on the actual GPS position of the Silk Road to harmonize trade and
container, temperature, intrusion and shocks. investment policies which are often
Operators integrate information from railways restrictive, and trade agreements between
on platforms for their clients. Beyond this corridor economies tend to be shallow and
blockchain technology is an opportunity for the fragmented. Gaps in infrastructure
near future to enable full data interoperability, compound gaps in policy, and cross-
i.e. full paperless information between all regional integration is mostly missing.
parties involved, instant financing and fully Border delays can be over 40 times higher
door-to-door-tracked container movement in in low-performing countries than in the
a trusted and secure manner. New technologies best performing countries.
such as blockchain have the potential to take 2. Integrated and synchronized development
over supply chain management and disrupt of infrastructure – particularly for
traditional ways of working. A Proof of countries in Central Asia will derive more
Concept (PoC) for Samsung seafreight benefit than if countries build railways or
between Korea and Rotterdam demonstrated roads in isolation. Cross-border
that a comprehensive supply chain cooperation can further enhance the value
management system with paperless integration of a country’s investments - by adopting
of physical, administrative and financial flows harmonized standards for infrastructure.
is now feasible [TransFollow, 2019]. 3. The value of individual railway projects
depends on the realization of others.
Global supply chain involves participants Project selection and appraisal and the
such as manufactures, forwarders, shippers, inclusion of BRI projects in national
customs agents, and insurers. Blockchain development strategies are essential to
technology has been proofed as a transparent avoid stranded infrastructure. Cooperation
and immutable shared record book to track among participating countries can also
containers. Each participant in a global supply ensure that projects are not redundant and
chain is able to monitor the status of goods that they maximize value from a regional
movement with corresponding permissions. perspective.
Information is shared across the consensus 4. Some policy reforms to facilitate trade
network with high level of security and and improve corridor performance require
durability. No party can modify, delete or country-specific actions and cooperation.
append any record unilaterally. Blockchain Supply-chain bottlenecks in a single
with its featured smart contract framework country could block the potential benefit
provides solutions to improve logistics of the entire corridor in unlocking new
efficiency through the following key features: trade opportunities. Deepening trade
− Greater transparency of the logistics agreements among corridor economies
process. could reduce the current fragmentation
− Less paper work and clear responsibility. and establish the rules and mechanisms
A pre-defined smart insurance contract is for trade and other policy reforms.
stored on a blockchain and is executed 5. Some Financing Issues– several risks and
automatically as part of a transaction. challenges have to be managed to ensure
− Trust and credibility grow as all the benefits are also passed onto transit
transactions are immutably recorded. countries. This includes coordinating
− Costs are reduced by eliminating infrastructure investments on critical links
intermediators. that cross borders, managing social,
− Optimize business processes by analysing environmental, and corruption related
information chains recorded by blockchain. risks; and managing public debts. A range
of policy and financing instruments will
be needed to derisk and to deliver key

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Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

infrastructure while addressing soft issues Prospects and Barriers, Laxenburg

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of the route in Asia and Europe, complemented Österreichs Bahn die europäische Konkur-
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wie-oesterreichs-bahn-die-europaeische-
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Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

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NOWY JEDWABNY SZLAK: MOŻLIWOŚCI GLOBALNEGO

ŁAŃCUCHA DOSTAW I WYZWANIA DLA DALSZEGO ROZWOJU
STRESZCZENIE. Wstęp: Próby stworzenia Nowego Jedwabnego Szlaku z Europy do Azji są podejmowane
praktycznie bez przerwy od lat 70-tych XX wieku. Jednak dopiero utworzenie inicjatywy Belt and Road Initiative (BRI)
przez Chiny w 2013 zdynamizowały stworzenie połączenia między Europą a Azją. W okresie 2014 do 2018 ilość
transportów szynowych pomiędzy Chinami a Europą (włączając Rosję) wzrosła z 298 do 4982 rocznie. Czy trend ten
będzie utrzymany? Jakie są ograniczenia i wyzwania? Jakie są możliwości dla współudziałowców (krajów), twórców
polityki, przewoźników i operatorów logistycznych? Praca ta jest naukowym pytaniem dotyczącym dalszej segmentacji
transportu intermodalnego w kontekście globalnych łańcuchów dostaw.
Metody: W oparciu o przegląd literatury naukowej oraz wywiadów przeprowadzonych z operatorami logistycznymi
i przewoźnikami, przeanalizowano projektowe i operacyjne parametry system intermodalnych transportów, główne
wyzwania i ograniczenia oraz zaproponowano środki umożliwiające przyszłościowy wzrost i zrównoważony rozwój tego
typu transportu.
Wyniki: Głównymi czynnikami umożliwiającymi dalszy rozwój Nowego Jedwabnego Szlaku Europa Chiny są nowacje
technologicznego, cyfryzacja łańcuchów dostaw, optymalizacja transportu intermodalnego i koncepcji bram, zarządzanie
korytarzami oraz nowe metody handlu oparte o e-handel.

Wnioski: Jakkolwiek intermodalne połączenia lądowe pozostaną na razie zapewne rynkiem niszowym, to oferują one
istotną oszczędność czasu tranzytu oraz ponoszonych kosztów w przypadku specyficznych typów ładunków, dla których
fracht lotniczy jest zbyt drogi a morski zbyt wolny. Szczególnie północne prowincje Chin są zainteresowane tym typem
transportu o aczkolwiek wyższych kosztach w stosunku do transportu morskiego ale niższych niż w przypadku transportu
lotniczego. Jest to również wielka możliwość dla Centralnej Azji i Kaukazu. Nowe szlaki transportowe promują
inwestycje nie tylko w obszary produkcyjne eksportowe dla lokalizacji w północnych prowincjach ale także otwierają
nowe możliwości dla eksporterów europejskich dóbr przemysłowych oraz FMCG skierowanych do konsumentów
z rosnącej klasy średniej w Chinach. Całkowite koszty logistyczne z punktu widzenia wysyłającego mogą być bardziej
konkurencyjne w przypadku trasy lądowej aniżeli trasy morskiej. Duże korporacje zarówno produkcyjne jak
i dystrybucyjne (np. BASF, HP, BMW) jak również firmy małej i średniej wielkości (szczególnie korzystające
z możliwości e-handlu) mogą wiele zyskać na dalszej integracji rynków oraz globalizacji łańcuchów dostaw.

Słowa kluczowe: Nowy Szlak Jedwabny, Belt and Road Initiative, globalne łańcuchy dostaw, transport intermodalny,
cyfryzacja, zarządzanie korytarzem

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Wagener N., Aritua B., Zhu T., 2020. The New Silk Road: Opportunities for Global Supply Chains and
Challenges for Further Development. LogForum 16 (2), 193-207. http://doi.org/10.17270/J.LOG.2020.403

Norbert Wagener
Poznan School of Logistics, Poznan, Poland
e-mail: norbert.wagener@wsl.com.pl

Bernard Aritua
Senior Infrastructure & Logistics Specialist – Central Asia, China and Mongolia
The World Bank Group, China
e-mail: baritua@worldbank.org

Tong Zhu
Transport Analyst
The World Bank Group, Bejing China
e-mail: tzhu1@worldbank.org

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