New China-Europe freight train a challenge to S’pore
Connecting the wholesale-market town of Yiwu in the Chinese province of Zhejiang by rail to London opens a new chapter in trade between China and Europe (“First freight train from China to Britain arrives in London”, Reuters, January 18).
This new service’s journey time is two weeks shorter than that by sea and prices are half that of air cargo. No wonder traders on both ends of the route are excited by this latest development.
Will this new connection have an impact on Singapore’s position as a leading hub port in Southeast Asia? It is likely that some cargo from either China or Europe may bypass the Strait of Malacca once this transcontinental rail route catches on.
But, rather than feel threatened by it, Singapore port operator PSA Corp should embrace it as a challenge to up the ante and provide a service second to none in terms of efficiency, with state-of-the-art port technology that will continue to attract leading shipping lines.
Singapore businesses can also consider investing in or establishing manufacturing facilities near Yiwu or in other Chinese cities connected by this new route. This would enable them to take advantage of the likely trade boom and lower freight costs brought on by this development.
This new rail route might well present plenty of opportunities for Singapore businesses in the near future.
Gabriel Cheng Kian Tiong
(The Straits Times/ANN)
