China's railroad to world domination: $58 billion rail link with Pakistan will reduce reliance on West

[muhammadhafeezmalik]

China's railroad to world domination: $58 billion rail link with Pakistan will reduce reliance on West​

Chinese rail review board says system connecting Pakistan to China will change trade and geopolitics​

China has proposed its most expensive Belt and Road Initiative to date with a $58 billion railway system that would connect Pakistan to western China in a move to further reduce Western trade dependence, a report said Thursday.

The $57.7 billion plan was reviewed by analysts from the state-owned China Railway First Survey and Design Institute Group Co Ltd., which has determined that despite its hefty price tag the investment is worth it, reported the South China Morning Post.

The 1,860-mile rail system will connect Pakistan’s port of Gwadar to the Chinese city of Kashgar in the Xinjiang Uygur autonomous region and has the potential to reshape not only trade but geopolitics, according to the proposal’s review board.

A train equipped with coaches imported from China arrives at a railway station in Islamabad, capital of Pakistan, Jan. 27, 2023. (Ahmad Kamal/Xinhua via Getty Images)

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"The government and financial institutions should provide strong support, increase coordination and collaboration among relevant domestic departments, strive for the injection of support funds and provide strong policy support and guarantees for the construction of this project," the Chinese team of analysts said in a report published earlier this month in the Chinese journal, Railway Transport and Economy.

Though the railway connecting China to Pakistan would be China’s biggest transport project yet, this is not the first major international rail system the Institute has been involved in, having helped with Jakarta-Bandung high-speed rail line in Indonesia – Asia’s first high-speed rail system – which is slated to open in June.

Passengers purchase tickets for the China-Laos Railway in Vientiane, Laos, April 11, 2023. (Yang Yongquan/Xinhua via Getty Images)

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The latest rail system to get the green light in China will connect the world’s top manufacturer with the Arabian Sea, opening it up to more direct trade routes.

It is also expected to encourage additional train systems that could connect China to Turkey and Iran – significantly opening up direct access to the regions, reported the South China Morning Post.

Foreign ministers from China, Russia, Iran and Pakistan meet in Samarkand, Uzbekistan, on April 13, 2023. (Bai Xueqi/Xinhua via Getty Images)

The trade routes are just one component of Beijing’s broader Belt and Road Initiative that looks to solidify China as a world superpower and encourage global domination in the trade sector.

The initiative is also looking to shift focus away from historical trade routes dominated by Western nations to better improve China's economic goals and encourage a "multipolar world" to diminish Western power – a move that top autocratic nations like Russia and Iran have also been eager to encourage as geopolitical tensions with the West continue to escalate.

China's railroad to world domination: $58 billion rail link with Pakistan will reduce reliance on West

China has proposed its most expensive Belt and Road Initiative yet with a $58 billion railway system that would connect Pakistan to western China in a move to further reduce Western trade dependence.

www.foxnews.com

 

[AlKardai]

This has been in the pipeline for almost 5 years now.

Any real updates?

 

[muhammadhafeezmalik]

China-Pakistan railway ‘worth it’ at estimated US$58 billion: study ​

• Belt and Road Initiative’s most expensive transport infrastructure project ‘has potential’ to reshape trade and geopolitics
• The rail link is part of a broader plan to revive ancient Silk Road connections and reduce reliance on Western-dominated routes

​

Stephen Chen in Beijing​

Published: 3:01pm, 27 Apr, 2023​

​

The China-Pakistan railway – China’s largest Belt and Road Initiative transport project – will cost an estimated 400 billion yuan (US$57.7 billion), but should proceed because of its strategic significance, a government-commissioned feasibility study has found.​

The proposed railway, connecting Pakistan’s port of Gwadar to Kashgar in China’s Xinjiang Uygur autonomous region, was assessed by scientists from the state-owned China Railway First Survey and Design Institute Group Co Ltd.​

The team, led by the institute’s deputy director of capital operations Zhang Ling, said the project was the belt and road plan’s most expensive transport infrastructure.​

Despite the cost, the project had the potential to reshape trade and geopolitics across the Eurasian continent and should be supported, the team said in a report published by the Chinese-language journal Railway Transport and Economy in April.​

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“The government and financial institutions [in China] should provide strong support, increase coordination and collaboration among relevant domestic departments, strive for the injection of support funds and provide strong policy support and guarantees for the construction of this project,” they said.​

The institute is one of the largest of its kind in China and has been involved in many major railway projects at home and internationally, including Indonesia’s Jakarta-Bandung high-speed rail line.​

​

Xi calls for port and railway projects in Pakistan to be ‘accelerated’​

​

2 Nov 2022​

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The 3,000km (1,860-mile) railway will link China’s western regions with the Arabian Sea, bypassing the Strait of Malacca and reducing dependence on the South China Sea.​

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Connections with other transport networks – including in Iran and Turkey – would also provide a more direct route to Europe for Chinese goods, while Pakistan is forecast to get a much-needed boost from the improved infrastructure and easier trade with China.​

The scheme is a key component of Beijing’s broader belt and road plan to promote economic cooperation and connectivity among the countries along the ancient Silk Road trade routes.​

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By registering, you agree to our T&C and Privacy Policy​

Previous studies by Chinese government researchers have suggested the infrastructure initiative could have significant geopolitical implications, helping to shift the balance of power away from traditional Western-dominated trade routes.​

​

As well as encouraging a more multipolar world order, the belt and road plan could also help to promote economic development and stability in countries along the route by creating jobs, boosting infrastructure investment and increasing trade, the studies said.​

​

Most belt and road transport infrastructure construction projects had received a significant proportion of funding from the host countries, and the scale of investment was much smaller, Zhang and his colleagues noted.​

For example, total investment in Kenya’s Mombasa-Nairobi standard gauge railway was US$3.8 billion, with China providing 5 per cent of the funding and Kenya paying for the rest.​

​

The project connects the port city to the Kenyan capital and is part of a larger plan to link East African countries by rail. Similarly, China contributed 30 per cent of the US$4 billion funding for the Addis Ababa-Djibouti rail line in Ethiopia.​

​

https://www.scmp.com/news/china/dip...ng-light-rail?module=hard_link&pgtype=article​

China covered 75 per cent of the Jakarta-Bandung high-speed railway’s costs of US$5.9 billion, with Indonesian state-owned enterprises providing the remainder.​

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But Pakistan is unable to make a similar contribution. Its GDP last year was US$370 billion – just six times the estimated cost of the project.​

“Due to energy shortages, poor investment environment and fiscal deficits, Pakistan’s economic growth rate has come under pressure,” the team said.​

“In terms of railway investment and construction, Pakistan is unable to provide sufficient financial and material support and mainly relies on Chinese enterprises for investment and construction.”​

​

One reason for the hefty cost is the mountainous and geologically complex terrain along the route. There could be technical challenges to overcome in the construction and operation of the railway, the researchers said.​

The project also required supporting infrastructure – such as ports and logistics facilities – that might not be immediately available in Pakistan, they said.​

The study said Pakistan’s labour policies could be unpredictable, which could potentially affect the railway’s construction and operating costs.​

The team also noted that Pakistan had experienced security challenges in recent years, including in its western region where the railway will pass through. Balochistan province, for instance, has been plagued by separatist violence for decades.​

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​

This could potentially disrupt construction and operation of the railway and pose a risk to Chinese workers and investments, the researchers said.​

The study also pointed out the railway’s potential impact on neighbouring countries, such as India. With each country having its own priorities and interests, there could be disagreements or delays in decision-making related to the project, it said.​

Zhang’s team suggested that a build and transfer (BT) model would provide the best investment and financing strategy for the project.​

They considered BT against build-operate-transfer, public-private partnerships, and the engineering, procurement, construction mode that are becoming more popular in belt and road projects.​

​

​

​

China-funded international airport in Pakistan expected to be ready in September 2023​

In the BT model, a contractor would be responsible for designing, building and financing the railway, with payment on completion and ownership transferred to the government or other commissioning entity.​

The researchers said BT would allow the risks associated with the railway’s construction and operation to be allocated more effectively between China and Pakistan, potentially reducing the financial risks for both parties.​

By ensuring that ownership of the railway was transferred to Pakistan, BT could also help to build trust between China and Pakistan by showing China’s commitment to supporting Pakistan’s long-term economic development, they said.​

China and Pakistan have been talking for years about the railway, a crucial part of the China-Pakistan Economic Corridor (CPEC) that was launched in 2015 and aims to connect Gwadar port to Xinjiang through a network of roads, railways and pipelines.​

The researchers said the China-Pakistan relationship was complex, with both countries having different priorities and interests.​

Negotiating agreements related to financing, labour policies, and other issues would require careful consideration of each country’s priorities and interests, they said.​

In conclusion, Zhang and his team said their recommendation could help to move negotiations forward.​

​

China-Pakistan railway ‘worth it’ at estimated US$58 billion: study

Belt and Road Initiative’s most expensive transport infrastructure project ‘has potential’ to reshape trade and geopolitics.

www.scmp.com

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[muhammadhafeezmalik]

https://twitter.com/x/status/1651879211257192448

US reaching out to PTI after development in this project:

https://twitter.com/x/status/1651823734796451840

 

[AlKardai]

China-Pakistan railway ‘worth it’ at estimated US$58 billion: study ​

• Belt and Road Initiative’s most expensive transport infrastructure project ‘has potential’ to reshape trade and geopolitics
• The rail link is part of a broader plan to revive ancient Silk Road connections and reduce reliance on Western-dominated routes

​

Stephen Chen in Beijing​

Published: 3:01pm, 27 Apr, 2023​

​

The China-Pakistan railway – China’s largest Belt and Road Initiative transport project – will cost an estimated 400 billion yuan (US$57.7 billion), but should proceed because of its strategic significance, a government-commissioned feasibility study has found.​

The proposed railway, connecting Pakistan’s port of Gwadar to Kashgar in China’s Xinjiang Uygur autonomous region, was assessed by scientists from the state-owned China Railway First Survey and Design Institute Group Co Ltd.​

The team, led by the institute’s deputy director of capital operations Zhang Ling, said the project was the belt and road plan’s most expensive transport infrastructure.​

Despite the cost, the project had the potential to reshape trade and geopolitics across the Eurasian continent and should be supported, the team said in a report published by the Chinese-language journal Railway Transport and Economy in April.​

​

​

​

​

“The government and financial institutions [in China] should provide strong support, increase coordination and collaboration among relevant domestic departments, strive for the injection of support funds and provide strong policy support and guarantees for the construction of this project,” they said.​

The institute is one of the largest of its kind in China and has been involved in many major railway projects at home and internationally, including Indonesia’s Jakarta-Bandung high-speed rail line.​

​

Xi calls for port and railway projects in Pakistan to be ‘accelerated’​

​

2 Nov 2022​

​

​

The 3,000km (1,860-mile) railway will link China’s western regions with the Arabian Sea, bypassing the Strait of Malacca and reducing dependence on the South China Sea.​

​

Connections with other transport networks – including in Iran and Turkey – would also provide a more direct route to Europe for Chinese goods, while Pakistan is forecast to get a much-needed boost from the improved infrastructure and easier trade with China.​

The scheme is a key component of Beijing’s broader belt and road plan to promote economic cooperation and connectivity among the countries along the ancient Silk Road trade routes.​

Every Saturday​

​

By registering, you agree to our T&C and Privacy Policy​

Previous studies by Chinese government researchers have suggested the infrastructure initiative could have significant geopolitical implications, helping to shift the balance of power away from traditional Western-dominated trade routes.​

​

As well as encouraging a more multipolar world order, the belt and road plan could also help to promote economic development and stability in countries along the route by creating jobs, boosting infrastructure investment and increasing trade, the studies said.​

​

Most belt and road transport infrastructure construction projects had received a significant proportion of funding from the host countries, and the scale of investment was much smaller, Zhang and his colleagues noted.​

For example, total investment in Kenya’s Mombasa-Nairobi standard gauge railway was US$3.8 billion, with China providing 5 per cent of the funding and Kenya paying for the rest.​

​

The project connects the port city to the Kenyan capital and is part of a larger plan to link East African countries by rail. Similarly, China contributed 30 per cent of the US$4 billion funding for the Addis Ababa-Djibouti rail line in Ethiopia.​

​

https://www.scmp.com/news/china/dip...ng-light-rail?module=hard_link&pgtype=article​

China covered 75 per cent of the Jakarta-Bandung high-speed railway’s costs of US$5.9 billion, with Indonesian state-owned enterprises providing the remainder.​

​

But Pakistan is unable to make a similar contribution. Its GDP last year was US$370 billion – just six times the estimated cost of the project.​

“Due to energy shortages, poor investment environment and fiscal deficits, Pakistan’s economic growth rate has come under pressure,” the team said.​

“In terms of railway investment and construction, Pakistan is unable to provide sufficient financial and material support and mainly relies on Chinese enterprises for investment and construction.”​

​

One reason for the hefty cost is the mountainous and geologically complex terrain along the route. There could be technical challenges to overcome in the construction and operation of the railway, the researchers said.​

The project also required supporting infrastructure – such as ports and logistics facilities – that might not be immediately available in Pakistan, they said.​

The study said Pakistan’s labour policies could be unpredictable, which could potentially affect the railway’s construction and operating costs.​

The team also noted that Pakistan had experienced security challenges in recent years, including in its western region where the railway will pass through. Balochistan province, for instance, has been plagued by separatist violence for decades.​

​

​

This could potentially disrupt construction and operation of the railway and pose a risk to Chinese workers and investments, the researchers said.​

The study also pointed out the railway’s potential impact on neighbouring countries, such as India. With each country having its own priorities and interests, there could be disagreements or delays in decision-making related to the project, it said.​

Zhang’s team suggested that a build and transfer (BT) model would provide the best investment and financing strategy for the project.​

They considered BT against build-operate-transfer, public-private partnerships, and the engineering, procurement, construction mode that are becoming more popular in belt and road projects.​

​

​

​

China-funded international airport in Pakistan expected to be ready in September 2023​

In the BT model, a contractor would be responsible for designing, building and financing the railway, with payment on completion and ownership transferred to the government or other commissioning entity.​

The researchers said BT would allow the risks associated with the railway’s construction and operation to be allocated more effectively between China and Pakistan, potentially reducing the financial risks for both parties.​

By ensuring that ownership of the railway was transferred to Pakistan, BT could also help to build trust between China and Pakistan by showing China’s commitment to supporting Pakistan’s long-term economic development, they said.​

China and Pakistan have been talking for years about the railway, a crucial part of the China-Pakistan Economic Corridor (CPEC) that was launched in 2015 and aims to connect Gwadar port to Xinjiang through a network of roads, railways and pipelines.​

The researchers said the China-Pakistan relationship was complex, with both countries having different priorities and interests.​

Negotiating agreements related to financing, labour policies, and other issues would require careful consideration of each country’s priorities and interests, they said.​

In conclusion, Zhang and his team said their recommendation could help to move negotiations forward.​

​

China-Pakistan railway ‘worth it’ at estimated US$58 billion: study

Belt and Road Initiative’s most expensive transport infrastructure project ‘has potential’ to reshape trade and geopolitics.

www.scmp.com

​

​

This did not answer my question Hafeez Sahab

The project has been in the pipeline for 8 years now.
Where are the results?
Gwadar is still not even a fraction of what we were promised

 

[SoulSpokesman]

@AlKardai

This project will suck up whatever little reserves that Pakistan is left with.

Regards

 

[AlKardai]

@AlKardai

This project will suck up whatever little reserves that Pakistan is left with.

Regards

Investment now is the best policy, as it will grow as the economy grows.
We currently have no real base to work off.
Power plants being constructed are a massive pain in the *** as the rest of the hardware used is over 50 years old. Before the power grid can be looked at, roads, rails and adequate logistical chains to attract foreign investment would be the best course of action.

Organising long-term plans for the payment of this project seems to be the best course of Action, and China has pretty much given up trying to nudge the Pakistani government to get it done.

 

[SoulSpokesman]

@AlKardai

China has pretty much given up trying to nudge the Pakistani government to get it done.

Sensible on part of Comrade Eleven and his Chinese govt. There is no way the GoP can get it done or pay off the debt on their own.

Regards

 

[AlKardai]

Sensible on part of Comrade Eleven and his Chinese govt. There is no way the GoP can get it done or pay off the debt on their own.

That's why I suggested that long-term payment projects would be the best course of action?
My point is that it can get done, and will get done, but it will just take a long time due to the nature of our government.
As the sanctions wrap tighter around China's interests, China will begin properly pushing Pakistan to get the job done, using practically all economic leverage that they have.

 

[maithil]

Who will pay the bill ? Will this be a loan to Pakistan?

 

[Meengla]

That's why I suggested that long-term payment projects would be the best course of action?
My point is that it can get done, and will get done, but it will just take a long time due to the nature of our government.
As the sanctions wrap tighter around China's interests, China will begin properly pushing Pakistan to get the job done, using practically all economic leverage that they have.

Yes.
Getting deep in debt WILL force Pakistan to eat the proverbial grass. A 'default' on a debt, should it come to that, will be catastrophic but only in short term. There will be infrastructure around to work off of and the pressure of the donors/lenders to 'do the right thing'. I think that's better situation than stagnation or no infra.

 

[khansaheeb]

This did not answer my question Hafeez Sahab

The project has been in the pipeline for 8 years now.
Where are the results?
Gwadar is still not even a fraction of what we were promised

It will take more than a decade to start as it is one of the most complex projects in human history since it will reshape the Himalayas and will more explosives than all the wars combined.

 

[That Guy]

$58 billion is a lot of money, what's the expected ROI? How long would it take to recover the money spent.

 

[maithil]

https://twitter.com/x/status/1653232843789680644