- China integrates mega logistics firms to form the Global Silk Road (Chongqing) Hub Port International Supply Chain Ltd.
- It would be the major shipping and logistics link between China and its African trade partners, with Congo taking the lead in the greater EA region.
- Togo, South Sudan, Sierra Leone, and Madagascar are also set to benefit from the joint logistics approach.
Kenya is set to benefit from a new plan by China to consolidate several mega logistics firms and development companies into one entity for better trade dealings with Africa. The Global Silk Road (Chongqing) Hub Port International Supply Chain Ltd was launched in Chongqing, China, last week.
The discussion featured exchanges on building an integrated platform for global commerce and mega logistics centres, all aimed at bolstering trade between China and Africa.
Shanghai Greenroad Warehousing and Logistics Group Co., Ltd, Zhejiang Holley Global Industry Development Ltd, Chongqing Jiangjin Hub Port Industrial Park Operation Group Ltd., and New Land-Sea Corridor Operation Ltd are part of the mega logistics conglomerate.
It would be the major shipping and logistics link between China and its African trade partners, with mineral-rich Democratic Republic of Congo (DRC) taking the lead in the greater Eastern Africa region. At the moment DRC receives a significant volume of its supplies through the Port of Mombasa, with the traders preferring the Kenyan coastal city port owing to the good road network to Kinshasa.
Read also: Standard Bank’s China-Africa trade initiative lands in Kenya
Togo, Sierra Leone also to benefit from China-backed mega logistics system
Other DRC-bound consignments are hauled through the Dar es Salaam port but the situation could change should the envisioned extension of Standard Gauge Railway to DRC sail through. Recently, the Kenyan government said it would explore private partnerships to realize the dream.
Togo, South Sudan, Sierra Leone, and Madagascar are also set to benefit from the joint mega logistics approach as per the deliberations at the meeting hosted by among others China-Africa Business Council under the leadership of Xu Qun.
“The new entity aims to integrate various stages of the global supply chain and implement a comprehensive service platform linking global commerce and logistics,” a brief from the Chongqing meet reads.
The meeting was held alongside the New International Land-Sea Trade Corridor Economic Development Forum. It attracted envoys from the African states that are set to benefit from the project with the delegates agreeing on the need for a stable supply chain platform.
“In the context of an increasingly integrated global economy, the stability and efficiency of supply chains are crucial to national economic prosperity,” the forum resolved. The council said the supply chain conference “not only generated fresh ideas for cooperation in the sector but also bolstered Chongqing’s and China’s influence in the global supply chain system.”
“Looking ahead, the China-Africa Business Council plans to implement President Xi Jinping’s connectivity partnership initiative, as outlined in his FOCAC Beijing Summit speech, to foster a comprehensive China-Africa interconnected network,” Qun said.
Read also: China’s 6,000-troop training program in Africa: What’s the real agenda?
China integrates mega logistics firms
China aimed to use the forum to spotlight how African countries and China can harness the strategic advantages of the New International Land-Sea Trade Corridor. The conference focused on enhancing supply chain resilience and fostering global connectivity, the brief reads. Themed “Build an Integrated Platform for Global Commerce and Logistics,” the event drew nearly 150 participants.
Attendees included government officials, academics, representatives from social organizations, industry leaders, and corporate delegates from regions such as Chongqing, Guizhou, Gansu, and Sichuan.
The deliberations bordered on how to explore global supply chain trends, collaboration opportunities, and the synergistic growth of logistics, trade, and industry. It also marked the launch of the China-Africa Business Council’s initiatives supporting the 13 provinces and two regions along China’s New International Land-Sea Trade Corridor.
The state of China-Africa trade
China’s trade with Africa in intermediate goods posted 6.4 percent year-on-year growth in the first seven months of 2024, official data showed this week.
Trade in intermediate goods between China and Africa accounts for 68 percent of the total value of bilateral trade, helping Africa in its process of industrialization and economic diversification, said Lyu Daliang, an official with the General Administration of Customs.
During the January-July period, bilateral trade totaled 1.19 trillion yuan (about $166.48 billion), with China’s exports to Africa hitting 697.93 billion yuan, while imports reached 490.89 billion yuan, customs data revealed.
