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Strengthening regional connectivity

China Daily | Updated: 2019-05-08 10:03
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Caroline Wu, managing director of Maersk China. [Photo/China Daily]

Caroline Wu, managing director of Maersk China

A1 During the past years, we have been looking at how we can fit in with the BRI, not only by providing transport services, but also by acting as a partner and co-investor with Chinese companies in these developments. Fundamentally, because the investment in infrastructure will facilitate increased trade, providing more demand for our ships, terminals, trains and supply chain management systems - the BRI creates many benefits to all players in the shipping and logistics community, where Maersk operates.

A2 Maersk believes that the BRI, which has the overarching aim of increasing connectivity and promoting global trade, can contribute to further reduce trade costs and bring trade based prosperity to more markets. Global trade is the key to economic growth and prosperity. Using China as an example, we can see that investment in the construction of infrastructure has contributed significantly to trade and economic growth, and we believe that one of the key factors in China's trade-based economic growth in particular following China's accession to the World Trade Organization, was the ability to create the infrastructure that enabled fast and efficient transport to all corners of the globe at a competitive price.

A3 For example, Maersk's terminal arm APM Terminals formed a joint venture with China COSCO Shipping Ports and Qingdao Port International Development in Vado, Italy. The parties operate together in the reefer terminal in Vado, the largest refrigerated cargo facility on the Mediterranean Sea, and will develop and operate a new deep-water container terminal together in the same area. Maersk has been working for a long time with Chinese partners, also in other places, such as Belgium and Egypt.

Rail services are becoming increasingly important for the transportation of goods between China and Europe. Maersk launched an intercontinental rail product in 2014, providing an end-to-end bundle solution via Wuhan, Chongqing, Chengdu and Yiwu. And we also worked with local partners in Wuhan to tailor make the first block train from China to France in October 2017. Since 2018, Maersk has also extended weekly Maersk rail services from Xi'an in Northwest China to Europe.

A4 What we care about first and foremost is that the initiative is open, transparent and welcoming to all players. It should be done in a spirit of mutual collaboration to create prosperity for everyone involved.

A5 Today, approximately 4 percent of the cargo between China and northern Europe is moved by rail. Although it is still a relatively small contributor to global trade, we believe that there is a demand for this product and the intercontinental rail service is poised for growth. We foresee in coming years that we will continue to see a significant year-on-year growth in rail volumes to and from Europe. We believe the development of intercontinental rail would not grow that fast without the implementation of the BRI.

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