Greek port part of BRI success story
Piraeus' success is just one example of the immense business potential made possible through the growing trade and connectivity between China and Europe, highlighted by the Belt and Road Initiative, also known as the BRI.
A container sent by rail from Hamburg, Germany, is unloaded in Wuhan, Hubei province. [Photo/China Daily]
Contrary to popular perception, the BRI does not represent a single clearly drawn trade route, nor is there an authoritative list of projects. Instead, it is a vision that fosters globalization and common prosperity among all countries willing to engage, and is continuously expanding its reach.
For this reason, statistical projections on the BRI's impact can vary, but all observers agree on the vision's "grand nature". HSBC estimates that Belt and Road development projects will cost up to US$6 trillion in the next 15 years, while PricewaterhouseCoopers estimates the cost at US$5 trillion. Fitch ratings agency believes projects worth US$900 billion were already planned or underway by last year.
Some projects, such as Piraeus, are clearly visible. Another example is the Lyon-Wuhan freight rail line between the French city of Lyon and Wuhan, capital of Hubei province. Launched in 2016, the line has greatly reduced transportation time and costs compared with sea freight. Since then, thousands of bottles of Bordeaux wine, auto parts and French agricultural products have been exported to China.
Last year saw the launch of the "Silk Road in the air" cargo flight, connecting the trading hubs of Zhengzhou, capital of Henan province, and Luxembourg. This has facilitated trading in many temperature-sensitive products, such as fresh fruit and pharmaceuticals.
From the Port of Rotterdam in the Netherlands to the vast terminal at Duisburg's inland port in Germany, logistics hubs across Europe are busy upgrading their facilities to allow more business as a result of surging trade volumes boosted by BRI connectivity.
Ivona Ladjevac, head of the regional center for the Belt and Road Initiative at the Institute of International Politics and Economics in Belgrade, the Serbian capital, said the BRI provides a valuable opportunity to strengthen connectivity between European countries.
The port of Piraeus in Greece is an example of the BRI success story. COSCO Shipping, which has a 35-year contract to run the facility, has invested heavily in infrastructure. [Photo/China Daily]
"BRI infrastructure projects can bring countries in southern Europe closer to the North, reduce transport costs and increase the flow of people and goods," Ladjevac said.
The Dutch financial company ING estimates that a 50 percent reduction in trade costs between countries taking part in the BRI could increase world trade by 12 percent.
But Belt and Road opportunities are not just about infrastructure or trade.
Douglas Morton, head of Asia research at Northern Trust Capital Markets, said: "Its goals reach far beyond construction projects, with the ultimate aim of stimulating regional GDP per capita. The initiative can bring together Chinese resources with European expertise at a time when global connectivity is becoming increasingly scarce."
Many multinationals are preparing to supply technology to Belt and Road countries in collaboration with Chinese companies.
Power equipment giant Alstom is looking to supply technology to help Chinese hydropower companies bidding for dam contracts in third countries within the BRI area, while Schneider Electric is supporting Chinese concrete, steel and water treatment companies looking to secure power and construction deals.
Siemens has agreements with more than 10 Chinese companies to supply digital technologies to Belt and Road power, energy, building and manufacturing projects.
Meanwhile, the City of London has campaigned heavily to make the British capital a finance hub for Belt and Road deals to enforce London's global reach amid Brexit uncertainties.
HSBC has financed nearly 100 projects in Belt and Road countries, while Standard Chartered funded more than 50 Belt and Road deals last year alone and in December it announced an additional US$20 billion commitment to BRI projects by 2020.
The UK Treasury has appointed Douglas Flint, former chairman of HSBC Holdings, as the country's Belt and Road envoy, an important government post. Meanwhile, the government agency UK Export Finance has announced 25 billion pounds (US$34 billion) of funding to support British companies' exports to Belt and Road projects.
