THE NEW SILK ROAD
to be around one million TEUs by 2020 .
As initiatives go , “ Belt and Road ” is ambitious . China ’ s plan to open up a new avenue for global trade across over 60 countries will require funding estimated between $ 4-8 trillion ; however , some experts estimate that it could also generate over $ 2.5 trillion of annual trade value by 2025 , once fully activated .
In an era where protectionism is being hailed by some , Chinese president Xi stood out by speaking up for globalization at the recent World Economic Forum in Davos . The construction of railways , roads , ports , airports and other infrastructure in countries along the ’ new Silk Road ’ does indeed have the potential to foster trade and bring development to some of the least developed parts of the world . It will create new markets for Chinese exports and jobs for a part of the country ’ s workforce , but will also open up new avenues for trade to go East . From a logistics and trade perspective , we welcome the initiative . However , in order for it to develop to its full potential , much needs to be done to ease complexity at borders . Governments and business are called upon to work hand in hand , with authorities focusing on simplifying the crossborder customs , regulatory and infrastructure conditions . Should governments in particular succeed in creating common frameworks and put the implementation of the WTO Trade Facilitation Agreement from 2013 on the top of their agenda , “ Belt and Road ” might indeed eventually become a boon for global trade .
15