Belt and Road

 The sheer scale China’s Belt and Road programme and its strong focus on trade and transportation infrastructure mean it will likely be one of the biggest influencers on the global maritime industry for decades to come.  However, industry stakeholders both within and outside of China struggle to understand the true implications and potential impact of the programme.  This is largely because it is unprecedented in terms of both its size and method, but also because it is unprecedented in terms of the expansion of China-related interests in one programme overseas.  

Belt and Road is already boosting opportunities and the level of development of port and logistics infrastructure on a global level, as well as filling some much needed gaps in the maritime and trade infrastructure of emerging markets  But by bringing more state involvement into the development of maritime and trade assets - and with that development drivers that may go beyond the immediate financial and functional goals of new infrastructure - Belt and Road also adds a high degree of complexity and increased risk for traditional investors, developers and operators in sector assets.

This page represents a collection of key intelligence from our specialist business writers on the Belt and Road programme, with the primary aim of facilitating better understanding of it to support the industry to take advantage of its opportunities and help mitigate its risks. 

News & Analysis

23 Aug 2018
Study warns of the dangers of poor project planning and weak due diligence due to heavy political pressure on state-controlled companies that could leave investors with significant losses
DP World operations
17 Jul 2018
China Merchants Group signalled its intention to further develop ties with the government of Djibouti, saying it would shortly begin the redevelopment of the old port in the downtown area of the country’s capital.
Malaysia has suspended construction on the East Coast Railway Link project. Credit: US Rail
05 Jul 2018
The new Malaysian government has halted the ECRL project a day after finance minister Lim Guan Eng called for a sharp price reduction following his discovery that the actual cost is nearly 50% more than estimates under the previous government.  
27 Jun 2018
Danish Ship Finance believes that the underlying global market growth is significantly lower than many market analysts suggest, with figures artificially inflated by government initiatives such as Belt and Road and quantitative easing. In addition, technological evolution in the industry will erode the traditional model for owners.
Mahathir Mohamad
14 May 2018
Malaysia’s comeback prime minister, Mahathir Mohamad, has pledged to review all foreign contracts and projects, including key rail and port initiatives with China and neighbouring Singapore.
HNA Group
28 Feb 2018
HNA is looking to boost its investment in the infrastructure that linked to China’s Belt and Road initiative.

Commentary

Belt and Road is expected to generate USD2.5 trillion in the next decade in additional trade between China and more than 60 countries connected by a sprawling network of roads, railways, air, and sea trade links.

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