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New Silk Road Drives Transcontinental Economy

已有 146 次阅读2016-1-27 10:31 |个人分类:Frank's Writings

New Silk Road Drives Transcontinental Economy

 --- Silk Road - the Watershed for Human Civilization and Barbaric Bivilization

                 Frank Li  Jan. 12 2014  in Waterloo Canada

    The Silk Road that firstly starts from Xi'an city, Shanxi Province China, during the Han Dynasty (206BC–220AD) with mainly trading the Silk that Made in China, which connects Asian continent to the West to have greatly contributed to the progress of the civilization for the covering areas. 

    The Silk Road plays a role as a watershed in the evolution of civilized - Civilization that originated in China by the way of peace and hard work with that of the evolution of uncivilized - Barbarism that originated in West by the way of killings and looting.

    Long historically, until now, China trades with Silk and other daily goods that Made in China.

    In 1841, American criticizes China's human rights as that of China's government did not allow civilized Westerners to free trade Opium into China.

    Above comment is from follow video that interviews with William Brown, an American, now is the Professor of Economics and Management School of Xiamen University China.  

    Video that interviews with William Brown: 

     http://edu.163.com/13/0716/10/93T89V4100294IJA.html

     Website introduces about William Brown and his families:

    http://www.amoymagic.com/Drbill/DrBillBio.htm

    We have sound reason to ask that, is there difference in the standard of civilization, or that some races have never civilized.

    In the times that barbaric civilization still takes looting as behooving way with modern Financial Means, I happily found that there are so many rational people are eagerly seeking alternative way by retaking Ancient Civilization - the Silk Road.

    Recent years, China, international Organizations and relating countries make efforts together to updateit with new hope to drive progress, prosperity and peace, especially for those landlocked countries in the modern way with a new name - New Silk Road.
 
   container_train
    Camels traversing the old Silk Road   The old Silk Road reinvents as Railways

    This article is inspired by following reports.

    2013-11-28, the report <China's freight train to Central Asia makes maiden voyage> said that, A freight train on the newly-opened Chang'an International Freight Line embarks on its maiden voyage from Xi'an, Shaanxi Province China to Almaty, Kazakhstan at 10 am on November 28. The train, carrying machine parts, barite and industrial salt, is expected to cover the 3,866-kilometer journey in six days, effectively cutting 20 days from previous road transportation time to Central Asia. A second train bound for Zhem, Kazakhstan will leave Xi'an on November 29, which will transport 49 cars of oil-drilling equipment over a 10-day trip covering 5,027 kilometers.

    The line reduces costs by some 30 percent.

    April 5, 2011, the report <Freight Train from China Arrives in Duisburg after Traveling 10,300 Kilometers> from Berlin/Duisburg, said that,

    A container train from Chongqing in China arrived yesterday night in Duisburg after traveling for scarcely 16 days. For the 10,300-kilometer journey along the so-called Southern route, the DB Schenker train, which was commissioned by a global company, completed the journey in about half the time that would have been necessary taking the sea route.

    The route taken by the train went south of Mongolia, through Kazakhstan, Russia, Belarus and Poland to Germany. Previous test trains on several occasions have followed the entire route north of Mongolia taken by the Trans-Siberian Railway, which is 2,000 kilometers longer, but involves less customs formalities.
    For well understanding the New Silk Road, I search and reprint some articles as following:
    1. The origin of the Silk Road
    2. The origin of the New Silk Road
    3. Central Asia and the New Silk Road
    4. Plans for New Silk Road economic belt taking shape
    5. Modern-Day Silk Road Optimizes HP’s Supply Chain 
    --- Frank Li   Jan. 12 2014 in Waterloo Canada

1. The origin of the Silk Road

    It extracted from Wikipedia that modified on 12 January 2014.

    The Silk Road is a series of trade and cultural transmission routes that were central to cultural interaction through regions of the Asian continent connecting the West and East. It gets its name from the lucrative Chinese silk trade which was carried out along its length, and began during the Han Dynasty (206 BC – 220 AD). The Central Asian sections of the trade routes were expanded around 114 BC by the Han dynasty, largely through the missions and explorations of Zhang Qian.

 

    Silk Road extending from Europe through EgyptSomalia, the Arabian PeninsulaIranAfghanistan, Central Asia, Sri LankaPakistanIndiaBangladeshBurma, Java-IndonesiaPhilippines and Vietnam until it reaches China. Port cities on the maritime silk route featured on the voyages of Zheng He.  

    Trade on the Silk Road was a significant factor in the development of the civilizations of China, theIndian subcontinentPersiaEurope and Arabia. It opened long-distance, political and economic interactions between the civilizations.

Though silk was certainly the major trade item from China, many other goods were traded, and various technologies, religions and philosophies, as well as the bubonic plague (the "Black Death"), also traveled along the Silk Routes. In addition to economic trade, the Silk Road served as a ways of cultural trade between the networking civilizations.

2. Plans Advanced for Silk Road Revival 

         China Daily October 27, 2004

         http://www.china.org.cn/english/2004/Oct/110469.htm

    Oct. 26 to 27 2004, in Xi'an, Shanxi Province China. the Third International Silk Road Conference that co-sponsored by China's Ministry of Communications, the IRF and the Shanxi provincial government, is held to enhance regional transportation cooperation and discuss the rejuvenation of the Silk Road and construction of transport infrastructure.  New Silk Road Activates Central Asia Economy - 风萧萧 - Notebook of Frank
    The IRF envisages modern road links connecting the heart of China and the industrial centers of Western Europe.
    Wim Westerhuis, senior representative of the International Road Federation (IRF) said that "It is not simply a highway, but a network of roads facilitating trade between two major economic powerhouses, enhancing the development of landlocked Central Asia and making its markets more accessible." 
    The ambitious plan has caught the attention of 12 countries, including China and South Korea. Top-level transportation authorities from participating nations have already begun discussions.  
    The International Road Federation, established in 1948, is a nongovernmental and nonprofit global organization comprising 70 governmental and corporate members. It participates extensively in road construction and financing. 
    The IRF believes that with the spectacular economic growth in China, with the EU increasingly looking outward and with the continuing development in Central Asia, the need for a road network along the Silk Road route is growing increasingly apparent. 
    Some countries, such as China, have already made substantial progress in the construction and rehabilitation of the road links within their territories, while others lag behind, according to Westerhuis."Our purpose is to promote the development of the whole region," he said. 
    The First International Silk Road Conference was held in 1998 in Turkmenistan and the second was in Uzbekistan in 1999. 
    Xi'an was selected as the site of this year's conference as it was the starting point of the ancient Silk Road. The city is now the capital of Shaanxi Province. 
    Financial entities such as the World Bank, Asian Development Bank and APEC are also attending the conference.  

2. The origin of the New Silk Road

Geneva Meeting Pledges Major Progress On Revitalizing Silk Road

     February 20, 2008

      http://www.rferl.org/content/article/1079508.html

      A highway in Urumqi, Xinjiang. (Photo/Xinhua) A highway in Urumqi, Xinjiang, China.                

                                                    ---  (Photo/Xinhua)

    Mountain roads in Tajikistan, to be bypassed by new routes built with Chinese investment.

    A UN-sponsored meeting of 19 Asian and European countries has pledged to prioritize infrastructure projects worth $43 billion to revitalize the ancient Silk Road joining the two continents.

    The meeting brought together 19 countries, including Russia, China, Iran, the Central Asian republics, Bulgaria, Moldova, and Turkey. The sponsoring United Nations agencies were the UN Economic and Social Commission for Asia and the Pacific (ESCAP) and the UN Economic Commission for Europe (UNECE).

    Each country is taking responsibility for the section of the Silk Road on its own territory, through measures such as improving rail or road links, border crossings, or other infrastructure. International institutions like the World Bank are assisting with finance.

    But the UN has an important coordination role insofar as the trade route will only work if there are no gaps; construction of railways, for example, must be carried out with the cooperation of countries along all stages of the route, so that no "weak link" slows down transport.

    The transport ministers pledged that by 2014, they will have completed priority projects costing some $43 billion. ESCAP spokesman Barry Cable described this as a "rebirth" that will offer new economic opportunities for the landlocked countries of Central Asia and Eastern Europe, and provide much better connections for remote regions that depend on land transport for trade.

    In all, 230 infrastructure projects are envisaged, but not all are expected to be finished within the set time frame. 

3. Central Asia and the New Silk Road

The thriving east-west trade that once prospered along the famed Silk Road is slowly being restored to its former glory through transport and trade links being rolled out under the Central Asia Regional Economic Cooperation program. Here are 12 facts and figures on the New Silk Road.

1. The Silk Road first operated in 2 B.C. as a route between China and the capital of the Roman Empire. The most valuable commodity imported from China was silk, thus … The Silk Road.
Source: ADB 'New Silk Road' to Link Europe, Asia.

2. The trade that once prospered along the Silk Road declined with the opening of the world's sea-lanes in the 16th and 17th centuries.
Source: ADB 'New Silk Road' to Link Europe, Asia

3. The road has been coming back to life in the last 10 years, connecting Mongolia to Afghanistan to Turkmenistan and many countries beyond. This has largely come about through growing transport and trade links being rolled out under the Central Asia Regional Economic Cooperation (CAREC) Program, which was established in 2001.
Source: ADB CAREC at 10 - Connectivity and Trade for Prosperity

4. The CAREC Program is a partnership of 10 countries and 6 multilateral institutions. It brings together Afghanistan, Azerbaijan, the People's Republic of China, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.
Source: ADB CAREC Program

5. Since 2001, CAREC-related investments have totaled $17 billion in energy, trade and transportation. Accomplishments have included some 3,600 kilometers of road building and improvements, and almost 2,000 kilometers of railway tracks put in place.
Source: ADB The New Silk Road: Ten Years of the Central Asia Regional Economic Cooperation Program

6. A significant barrier to trade in Central Asia is the high transports costs, and long and unpredictable times for international shipments to and from the region. Countries in the region are also landlocked, remote, and have difficult topographies.
Source: Central Asia: Increasing Gains from Trade Through Regional Cooperation in Trade Policy, Transport, and Customs Transit

7. From 2001-2011, ADB provided $5.5 billion in loans and grants in transport, trade, and energy to CAREC countries. The ring road, rail and electricity projects in Afghanistan, and the East-West Corridor in Azerbaijan are some of the flagship programs.
Source: ADB and CAREC

8. On energy, ADB is assisting the Turkmenistan-Afghanistan-Pakistan-India Natural Gas Pipeline Project. ADB financed regional transmission lines, including the one that now supplies electricity to Kabul from Uzbekistan 24 hours a day, seven days a week.
Source: ADB CAREC at 10 - Connectivity and Trade for Prosperity

9. Since Afghanistan was at the heart of the Silk Road network, ADB's focus has been on transport and energy networks that will enable the country to fulfill its role as a key player in the CAREC program. A newly opened 75-kilometer railway line from Hairatan on the Uzbekistan border to Mazar-e-Sharif in Afghanistan will lead to increased trade.
Source: ADB Adds $754 Million to Infrastructure Projects in Afghan Road and Rail Sector

10. Bazaars across Central Asia have a positive impact on trade in the region. It is estimated the two largest bazaars - Dordoi and Barakhlovka— have sales of around or above $2 billion, while five other bazaars have estimated sales above $100 million. Bazaars also contribute to poverty alleviation through offering cheap products to consumers and creating employment opportunities extending well beyond bazaars themselves.
Source: World Bank: Bazaars and trade integration in Central Asia Regional Economic Cooperation (CAREC) countries

11. ADB is working to simplify and harmonize customs regimes and upgrade border posts, making borders crossings easier and ensuring more business between neighbors and partners in far-flung regions.
Source: ADB CAREC Transport and Trade Facilitation: Partnership for Prosperity

12. CAREC 2020 details priority projects, estimated at over $50 billion, needed to complete six transport corridors, improve energy security, and promote development of true economic corridors.
Source: ADB Development Partners Commit to Support CAREC 2020

4. Plans for New Silk Road economic belt taking shape

  • Tai Jui-fen and Staff Reporter  2013-12-22  12:28 (GMT+8)

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20131222000068&cid=1202

The ancient Silk Road played a key role in cultural exchanges between Asia and Europe. Now China's president, Xi Jinping, has proposed building a Silk Road economic belt while attending the Shanghai Cooperation Organization summit in September. The organization includes China and Russia as well as the Central Asian states of Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

Xi plans to connect economic zones from the Asia-Pacific to the European Union through the states of Central Asia, which will allow China to connect 18 countries with a population over 3 billion.

The economic belt is expected to boost the economy of western China and create 500 billion yuan (US$82.35 billion) worth of business opportunities.

At the third plenary session of the Communist Party of China's 18th Central Committee last month, the Silk Road economic belt plan was hailed as a key strategy for economic liberalization. Premier Li Keqiang also said the economic belt will strengthen the urbanization drive in central and western areas of China.

According to the State Council, China's cabinet, the initial plan for the economic zone will center upon three routes: the north route being the Eurasian Land Bridge focusing on logistics and transportation; the center route mainly focusing on oil and natural gas pipelines and the south route on transnational roads to develop five Chinese province-level regions in the northwest area, namely Chongqing, Sichuan, Gansu, Inner Mongolia and Xinjiang.

The Chinese-language China Securities Journal reported that the Silk Road economic belt would become a new reference point for the development of west China. Cities in western China have started developing over the last few years, with an urban cluster led by Xi'an, Lanzhou and Urumqi being formed gradually.

The third plenary session outlined a plan for the urbanization of Xinjiang, which is expected to conclude in 2015, with west China building an urban cluster that covers cities and counties, such as Urumqi, Karamay and Shihezi.


5. Modern-Day Silk Road Optimizes HP’s Supply Chain

by HP Next Team on July 22, 2013

In approximately three weeks, a freight train carrying thousands of Hewlett-Packard notebooks and displays makes its way from Chongqing, China to distributors and customers in Duisburg, Germany. This modern-day Silk Road covers two continents, six countries and more than 6,700 miles.

Despite the distance, the journey is cost-effective and better for the environment than air transport, and it’s faster than ocean shipping.

The new rail route is an example of how HP is improving its supply chain to give us a competitive advantage.

How it began

In 2010, HP developed factories and infrastructure in inland and western China to take advantage of economic incentives provided by the Chinese government. This development would improve the employment conditions of tens of thousands of factory workers in Chongqing who would no longer need to migrate from their homes to coastal cities to find work.

These inland factories do not have easy access to HP’s coastal shipping routes, so HP needed a new way to ensure quick, cost-effective delivery of products. A cross-continental rail route was an operative solution and HP set to work making it a reality.

For a year, HP navigated government and rail import/export requirements in the six countries through which the train travels: China, Kazakhstan, Russia, Belarus, Poland and Germany. Pilot trains began test routes in March 2011, and in March 2012, HP launched the rail route being used today.

Gaining competitive advantage and furthering our commitment to social and environmental responsibility

In a recent visit to China, Tony Prophet, Senior Vice President of Operations for HP Printing and Personal Systems, explained that the rail route is a competitive advantage for HP. He highlighted that it’s a great example of how we’re improving the supply chain to drive speed and value for customers -- and improve costs and cash flow for HP.

  • Cost and time benefits: Air transport from manufacturing sites in inland and western China to Europe is costly, and transporting products to the coastal cities from which they can then be shipped by sea can take up to 35 days. HP’s rail solution is the best of both worlds: it costs one-third the price of air transport and takes approximately three weeks.
  • Environmental benefits: Rail transport results in one-thirtieth of the carbon footprint of air transport.
  • Worker benefits: The rail route makes it economically competitive for HP to keep its manufacturing facilities in western China, driving economic growth in the region and improving the working conditions for tens of thousands of factory workers.

Innovations along the way

In the fall, as the train makes its way from China to Germany, the temperature in certain areas can be below -20 C (-4 F). To protect HP products, our supply chain organization developed an innovative packaging solution that regulates temperature without requiring external energy.

And to expedite the journey, HP implemented a simplified documentation process that reduces the time it takes to move through customs at each border. Every enhancement has helped save time and money.



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