New Multimodal China-Myanmar Route Connects Sichuan With The Indian Ocean

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The first shipment of goods using a new maritime-road-rail transportation corridor has arrived at China’s Chengdu International Railway Port following the completion of the Chengdu-Lincang railway line. The new route from the China-Myanmar border gives China better connectivity to the Indian Ocean and opens the huge Sichuan Provincial markets to India and Southeast Asia. Sichuan Province has a huge population, including the massive Chongqing city region of some 102 million. It also provides Sichuan, a landlocked Province, with access to a major seaport.

The route is China’s first road-rail transport link via Myanmar, with goods being shipped from Singapore by sea, to Myanmar’s Yangon (Rangoon) Port. They were then transported by road to Southwestern China’s Yunnan Province (Lincang), arriving later at Sichuan’s Provincial capital of Chengdu by rail. This new route cuts 20 days off the previous transportation times and represents considerable savings. The previous route from Mandalay in central Myanmar to Kunming in China’s Yunnan province was far less efficient.

From there they can be redistributed throughout Sichuan and beyond, to markets for example such as Tibet. They can also be forwarded across the northern route of the ‘New International Land-Sea Trade Corridor’ a plan proposed by the Chinese State Council in 2019 and which will eventually connect via Qinghai and Xinjiang Provinces to rail connectivity with Kazakhstan and Russia. That provides a secondary, easterly route for South Asia trade with Russia and Central Asia with the International North-South Transportation Corridor being a Westerly route from India, Iran, and the Caspian Seaports.

Major beneficiaries include Singapore, itself one of the regions key seaports and distribution hubs, one of the top three seaports worldwide by volume. Myanmar will also benefit in terms of developing transportation, warehousing, and repackaging services. The route effectively connects the logistics lines of Singapore, Myanmar, and China, and is currently the most convenient land and sea channel linking the Indian Ocean with southwest China. The corridor can be expected to become the main route for international trade between China and Myanmar.

Yangon Port also receives shipments from Bangladesh and India’s Kolkata, (Calcutta) in addition to numerous other South Asian ports, meaning additional China market access and vice versa for these markets to and from Sichuan.

The route is also important for China’s other landlocked southwest provinces, including Yunnan, partially addressing what is known as China’s “Malacca dilemma”, referring to the regional dependence on the Indian Ocean maritime chokepoint at the Malacca Straits. The new Sichuan-Myanmar corridor bypasses this and will promote additional freight redistribution sub routes.

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Silk Road Briefing is written by Dezan Shira & Associates. The firm has 28 offices throughout Asia, and assists foreign investors into the region. For strategic advisory and business intelligence issues please contact the firm at silkroad@dezshira.com or visit www.dezshira.com

 

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