CHINA-SINGAPORE RAIL LINK

CHINA’S RAIL LINK TO SINGAPORE INTENSIFIES EXPORTS RACE IN S-E ASIA

Shivangi Shukla

The Financial Express, September 2, 2012

Even as China's manufacturing activity continues to slide, with its purchasing managers index (PMI) falling below the 50% mark in August, the country has completed a rail link between two of its provinces, as part of a pan-Asian network that eventually stretches up to Singapore, with an eye on improving exports to south-east Asia.

The rail line between Yuxi and Mengzi in Yunan province of China is part of the pan-Asian network that will become operational by December, according to Chinese media, at a cost of $707 million, and has been completed ahead of schedule.

The line connecting China with most countries of Association of South-East Asian Countries (ASEAN) would run from Kunming, Laos, Thailand and Malaysia, to Singapore with alternate routes through Vietnam, Cambodia and Myanmar. This would mean easier transportation of goods and services via rail instead of shipment over the South China sea.

However, Indian business and trade officials are confident the new Chinese rail link will not significantly impact Indian trade with south-east Asia.

Abhijit Das of Center for WTO Studies says the new line will make India's trade with the ASEAN market slightly more difficult. "China is faster in completing infrastructure projects. But India and China can work together to come to a mutually beneficial solution," says Das.

Sanjay Budhia, member of the CII National Committee on Exports and Imports, says the new development in China should not affect India-China relations. "Competition is always welcome but not at the expense of one country having exclusive advantage over the other," says Budhia.

The line now has a total length of 141 km passing through 35 tunnels and 61 bridges, accounting for 55% of its total length.

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