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Interview: China’s transportation program could make world smaller, says scholar

Abstract : China's grand transportation program will break distance constraints and make the world smaller, a scholar has said.

CHICAGO, March 3 (Xinhua) — China’s grand transportation program
will break distance constraints and make the world smaller, a scholar
has said.

The program is the “Global 1-2-3 Logistics Circle,” and the aim is
for one-day domestic delivery of goods in China, two-day delivery from
neighboring countries, and three-day delivery to major global cities.

The goal was unveiled last week in guidelines for developing a
modern, high-quality and comprehensive transport network over the next
15 years.

“It will lead to a better allocation of global resources as goods can
be transported farther and faster with less energy,” Khairy Tourk, a
professor of economics with the Stuart School of Business at the
Illinois Institute of Technology in Chicago, told Xinhua.

Developing countries that lie on China’s door step will be major beneficiaries of the expected growth, Tourk said.

The program lays the foundation for the construction of a territorial
transportation corridor that serves many ASEAN nations, he said. “As
such, countries like Myanmar and Vietnam are expected to be
manufacturing hubs in the near future.”

The corridor would also promote a community built on common interests
in the region and help ASEAN integration, with many land-locked
countries being connected to the seas, he added.

Europe will be another major beneficiary of the program, he said, as a
large amount of goods transported through the China-Europe railway
network tend to be of relatively high value.

Meanwhile, increasing trip frequencies and shortening delivery times
will be advantageous to producers who would not have to keep large
amounts of inventories on hand, Tourk said.

“Faster connectivity among nations results in cultures coming into
more contact with one another. This bodes well for world peace,” he

Chinese consumers will also benefit from the program, Tourk said,
since they may buy a wider variety of overseas products and receive them
faster while paying less.

The program will “enhance China’s competitiveness through lowering the cost of imported and exported goods,” he said.

Tourk believes that China’s transportation program will facilitate global trade.

“Worldwide exporters will be able to expand their sales in the huge
Chinese market, thus, promoting globalization. The wider the world
market, the more are international investment and trade flows,” he said.

“China has laid out a sweeping transportation plan that knits the world together,” Tourk said. Enditem

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Source: Interview: China’s transportation program could make world smaller, says scholar

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