THE MARITIME SILK ROAD
TON VAN
DEN BOSCH
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Educated in the
Netherlands, Ton is
qualified to practice in
England and Wales and
in the Netherlands. Ton
previously served as
general counsel for an
international FPSO
company and, more
recently, a global
terminal operator.
Ton specialises in
maritime infrastructure
projects, including
ports and terminals as
well as offshore oil &
gas projects
(particularly FSRUs and
FPSOs).
Ton advises at all
stages of the economic
life-cycle, including on
private m&a, corporate
transactions, corporate
finance, project finance
and complex
commercial
agreements.
Ton’s expertise
integrates all aspects of
floating solutions, LNG,
ports and maritime
infrastructure and he
has particular expertise
in frontier and
emerging markets in
Africa and in Asia.
The Belt & Road initiative consist of two main components: the overland
“Silk Road Economic Belt”’ and the “21st Century Maritime Silk Road” (the
“road” somewhat confusingly refers to the shipping lanes). It is the
biggest infrastructure project in history and the aggregate investment is
projected to exceed 1,2 trillion (that is 12 zeros!) US Dollars. Chinese
companies are investing massive sums in the development of new
infrastructure such as roads, ports, terminals and railways as well as in
pipelines and other energy infrastructure.
The objective of China is to stimulate trade and export (the construction
of transportation infrastructure is combined with planned free-trade
agreements with around 65 countries) and to link China with countries
and markets in Asia, Africa and Europe. Furthermore, China seeks to
enhance its energy security and there are strategic and geopolitical goals
as well (such as for example China’s aim to reduce its dependence on the
Strait of Malacca).
It is relevant to remember that the Belt & Road initiative is neither
development aid nor foreign direct investment by the Chinese
government. Instead, it is a strategic framework and it is executed by
state controlled financial institutions and companies such as for example
China Merchants Port Holdings Company, the Shanghai International Port
Group and COSCO.
The Maritime Silk Road is having a dramatic impact on seaborne trade
and on the port business. According to the Financial Times, China has
invested $20bn in ports and terminals in the past 15 months or so, with
acquisitions of interests in terminals in Sri Lanka, Spain, Belgium and Brazil
and investments in projects in for example Djibouti, Oman, Gwadar in
Pakistan and the East Coast Rail Line (ECRL) in Malaysia (linking Kuantan
Port on Malaysia’s East coast to Port Klang on its West coast).
The 21st Century Maritime Silk Road creates a network of ports in Asia,
Africa and the Mediterranean and will redefine trade patterns between
Asia and Europe. The impact on the transportation sector is enormous
and will also be extremely relevant for the legal industry for years to
come.
As a Dutch citizen living in Singapore, I have always been intrigued by
ports and global trade routes. The Netherlands established naval trade
routes that opened the door to our modern-day global economy and
throughout the centuries, it has been one of the world's leading trading
nations. Singapore, with its strategic location on Strait of Malacca has
been an entrepot trading post for centuries and is the world's 2nd busiest
container port (after Shanghai).