OPTIMISING EURASIAN TRADE ROUTES: A STRATEGIC ANALYSIS OF THE CHINA-EUROPE EXPRESS RAILWAY UNDER THE BELT AND ROAD INITIATIVE

ОПТИМИЗАЦИЯ ЕВРАЗИЙСКИХ ТОРГОВЫХ МАРШРУТОВ: СТРАТЕГИЧЕСКИЙ АНАЛИЗ СКОРОСТНОЙ ЖЕЛЕЗНОЙ ДОРОГИ КИТАЙ-ЕВРОПА В РАМКАХ ИНИЦИАТИВЫ «ОДИН ПОЯС, ОДИН ПУТЬ»

Чай Сяндин

студент программы DBA, Казахский национальный университет имени аль-Фараби,

Республика Казахстан, г. Алматы

ABSTRACT

This article examines the strategic significance and optimisation potential of the China-Europe Express Railway, a key component of the Belt and Road Initiative (BRI). The study aims to evaluate the railway’s impact on Eurasian trade routes, identify challenges and opportunities, and propose strategic recommendations for enhancing efficiency and economic benefits.

The article begins with an introduction to the BRI and the role of the China-Europe Express Railway in transforming Eurasian trade. The Methods section details a mixed-methods approach incorporating quantitative data analysis, case study examination, and expert interviews. An actual case study of a central logistics hub in Kazakhstan is presented, with detailed tables illustrating trade flow improvements and performance metrics. The Results section highlights key findings regarding reduced transit times, cost savings, and increased trade volumes. In the Discussion, the benefits and challenges of the railway are analysed, including infrastructural bottlenecks, regulatory disparities, and geopolitical risks. Finally, the Conclusion offers strategic recommendations for policymakers and industry leaders to optimise trade routes along this corridor.

АННОТАЦИЯ

В этой статье рассматривается стратегическое значение и потенциал оптимизации Китайско-Европейской скоростной железной дороги, ключевого компонента инициативы «Один пояс, один путь» (BRI). Целью исследования является оценка влияния железной дороги на евразийские торговые пути, выявление проблем и возможностей, а также предложение стратегических рекомендаций по повышению эффективности и экономических выгод.

Статья начинается с введения в BRI и роли Китайско-Европейской скоростной железной дороги в трансформации евразийской торговли. В разделе «Методы» подробно описывается смешанный подход, включающий количественный анализ данных, изучение тематических исследований и экспертные интервью. Представлено фактическое тематическое исследование центрального логистического узла в Казахстане с подробными таблицами, иллюстрирующими улучшения торговых потоков и показатели эффективности. В разделе «Результаты» выделены основные выводы относительно сокращения времени транзита, экономии затрат и увеличения объемов торговли. В разделе «Обсуждение» анализируются преимущества и проблемы железной дороги, включая узкие места в инфраструктуре, нормативное неравенство и геополитические риски. Наконец, в Заключении предлагаются стратегические рекомендации для политиков и лидеров отрасли по оптимизации торговых путей по этому коридору.

Keywords: belt and Road Initiative; China-Europe Express Railway; Eurasian Trade Routes; Strategic Analysis; Logistics Optimization; Infrastructure; Trade Policy; Geopolitical Risk.

Ключевые слова: инициатива «Один пояс, один путь»; Скоростная железная дорога Китай-Европа; Евразийские торговые пути; Стратегический анализ; Оптимизация логистики; Инфраструктура; Торговая политика; Геополитический риск.

1. Introduction

The rapid expansion of global trade and shifting geopolitical dynamics have underscored the need for efficient and reliable trade routes. The Belt and Road Initiative (BRI), launched by China in 2013, is a visionary project intended to enhance regional connectivity and stimulate economic growth across Asia, Europe, and Africa [1]. Among its flagship projects is the China-Europe Express Railway, a crucial land-based corridor linking Chinese manufacturing hubs with European markets.

This railway has transformed traditional maritime trade routes by significantly reducing transit times and costs. However, despite these advantages, several challenges persist, including infrastructural limitations, regulatory hurdles, and political uncertainties [2]. This article provides a strategic analysis of the railway’s current performance, its impact on Eurasian trade, and potential areas for optimisation. Special emphasis is placed on real-world applications, including a case study of a logistics hub in Kazakhstan, to illustrate the railway’s role in facilitating smoother trade flows across Eurasia.

2. Methods

The research employs a mixed-methods approach to analyse the performance and strategic implications of the China-Europe Express Railway. The study methodology comprises the following components:

• Literature Review:

A systematic review of academic articles, industry reports, and policy documents related to the BRI and Eurasian logistics [1][3]. Both international and Russian Federation sources were included to provide a balanced perspective.

• Quantitative Data Analysis:

Using data from international trade databases and government publications, trade volume, transit times, and cost metrics were analysed before and after the railway’s operation [2][4].

• Case Study Analysis:

A detailed case study was performed on the Almaty Logistics Hub in Kazakhstan. The hub was selected due to its strategic location on the railway route and its role in facilitating the movement of goods between China and Europe. Data were gathered from on-site interviews with logistics managers, operational reports, and customs records.

• Expert Interviews:

Interviews with industry experts and policymakers provided qualitative insights into the challenges and opportunities associated with the railway’s operation [5].

This multi-pronged approach enabled a comprehensive analysis of the quantitative impact and the qualitative strategic considerations associated with optimising Eurasian trade routes.

3. Case Study: The Almaty Logistics Hub, Kazakhstan

Background

The Almaty Logistics Hub, located at a critical juncture of the China-Europe Express Railway, is a pivotal transit and consolidation point for goods moving between China and Europe. Established in 2017 as part of the BRI’s regional development programs, the hub has been instrumental in reducing transit times and enhancing supply chain efficiency.

Implementation and Operations

The hub's operations are characterised by:

• Integrated Facilities:

Warehousing, customs clearance, and multimodal transport services are integrated into a single facility, ensuring smooth transitions between rail, road, and air transportation modes [6].

• Advanced IT Systems:

Deploying real-time tracking, automated inventory management, and data analytics tools has improved operations' transparency and efficiency [7].

• Stakeholder Collaboration:

Cooperation among government agencies, private logistics firms, and international shipping companies has been critical to the hub's success [8].

Table 1.

Key Performance Indicators (KPIs) at the Almaty Logistics Hub (2018–2022)

Table 1 shows a marked improvement in operational efficiency and trade volumes over four years, with transit times reduced by nearly 38% and trade volume increased by 80%.

The China-Europe Railway Express (CR Express) has experienced significant growth in recent years, serving as a pivotal component of the Belt and Road Initiative (BRI) and enhancing trade connectivity between China and Europe. In 2023, the network achieved notable milestones:​

• Operational Scale: The CR Express operated over 17,000 train trips, marking a 6% increase from the previous year. These trains transported approximately 1.9 million Twenty-Foot Equivalent Units (TEUs) of cargo, reflecting an 18% year-on-year growth. [11] ​
• Economic Impact: The annual transport value surged from $8 billion in 2016 to $56.7 billion in 2023, underscoring CR Express's expanding role in global trade. [12]​

Challenges Encountered

Despite the success, several challenges have emerged:

• Infrastructural Bottlenecks:

Periodic congestion at the hub and limited rail capacity during peak periods [4].

• Regulatory Disparities:

Differences in customs procedures and standards across countries have sometimes led to delays [2].

• Geopolitical Risks:

Regional tensions and shifting trade policies pose potential risks to the smooth operation of the corridor [8].

4. Results

The integration of the China-Europe Express Railway, as demonstrated by the Almaty Logistics Hub case study, has yielded significant improvements in trade efficiency. Key findings include:

• Reduced Transit Times:

Average transit times decreased from 16 days in 2018 to 10 days in 2022, enabling faster delivery of goods and enhanced competitiveness for Eurasian trade routes [2][6].

• Increased Trade Volumes:

The volume of goods transported (measured in TEUs) has increased by 80% over four years, reflecting a more significant reliance on rail transport for cross-border trade [1][7].

• Cost Efficiency:

Through streamlined processes and enhanced intermodal connectivity, operational cost reductions of up to 12% have been achieved [4].

Table 2.

Comparative Analysis of Trade Routes: Rail vs. Maritime

Table 2 illustrates that the rail-based route offers substantial advantages in transit time, cost, and delivery reliability compared to traditional maritime shipping.

Looking ahead, China has ambitious plans to further develop its railway infrastructure by 2030:​

• High-Speed Rail Expansion: The high-speed railway network is set to expand to 60,000 kilometers by 2030, up from 48,000 kilometers at the end of 2024. This expansion aims to enhance domestic connectivity and integrate more seamlessly with international routes.
• Total Railway Mileage: The overall railway mileage in China is projected to reach 180,000 kilometers by 2030, increasing from 162,000 kilometers. This development will bolster both passenger and freight transportation capacities [13].

5. Discussion

The findings from the case study and quantitative analyses suggest that the China-Europe Express Railway is transforming Eurasian trade by reducing transit times, lowering costs, and increasing trade volumes. The railway’s benefits are evident in the improved performance metrics at the Almaty Logistics Hub [1][2].

However, several challenges must be addressed to optimise the trade route fully:

• Infrastructure Expansion:

Investing in additional rail lines and upgraded terminal facilities is necessary to alleviate congestion and boost capacity [3].

• Harmonization of Regulations:

Streamlining customs procedures and aligning regulatory standards across participating countries could minimise delays and reduce administrative burdens [5].

• Geopolitical Stability:

Mitigating geopolitical risks through multilateral agreements and regional cooperation is essential to ensure uninterrupted operations [8].

Addressing these challenges would enhance the performance of the China-Europe Express Railway and further integrate Eurasian trade networks, fostering more significant regional economic growth.

6. Conclusion

The strategic analysis of the China-Europe Express Railway under the Belt and Road Initiative reveals a significant potential for optimising Eurasian trade routes. The Almaty Logistics Hub case study illustrates how integrating advanced logistics technologies and coordinated infrastructure development can substantially improve trade efficiency. Although challenges such as infrastructural bottlenecks, regulatory disparities, and geopolitical risks persist, the benefits—reduced transit times, lower costs, and increased trade volumes—are compelling.

Policymakers and industry stakeholders should focus on:

• Expanding and modernising rail infrastructure.
• Harmonizing cross-border regulatory frameworks.
• Enhancing regional cooperation to mitigate geopolitical risks.
• Continuing investments in digital technologies for improved logistics management.

Future research should explore hybrid models that integrate rail, road, and digital logistics to realise the full potential of the China-Europe Express Railway. Optimising this trade corridor can support regional economic integration and sustainable growth in Eurasia [1; 2; 7; 8].

These advancements are expected to solidify CR Express's position as a vital artery in Eurasian trade, offering faster and more reliable logistics solutions between Asia and Europe [14].

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