Currently the Port of Rotterdam serves as the gateway to Europe. A point from where incoming cargo is distributed across the European hinterland. However with the new ‘Silk Road Railway’, the port will change from a gateway to a final destination.
China considers Rotterdam to be ‘the long way round’ and wants to find a shortcut. For this reason the New Silk Road will increase the share of cargo transported via rail.
Namely, Michiel Jak General Manager of SmartPort, says that China invests about USD 100 billion every year on the New Silk Road. Under this, invests heavily in areas between China and Europe. They have acquired many shares and sites, such as Piraeus, the Greek port, as a new gateway to Europe. Something that is negative for ports like Rotterdam, Antwerp and Hamburg.
Furthermore, the New Silk Road also uses the Czech Republic, Poland and Greece. This helps these countries by as the train wait while cargo is transloaded to a different train or the rolling stock is fitted with different bogies. This gives the opportunity to local parties to turn semi-manufactures into finished products or engage in other value-adding activities.
Michiel Jak notes:
I believe assuming a directing role is actually the better deal, because it creates a lot of new added value and requires you to develop new innovations within the supply chain. If it were up to me, we would be handling the more difficult aspects of logistics: inspection, customs, planning, forecasts, blockchain transactions (the transfer of information and property). They present a range of issues, which often require dedicated study. We could handle everything that has to do with logistics, apart from the actual transport. From the Netherlands as a transport provider to the Netherlands as a director. And from Rotterdam as a transport hub to Rotterdam as a control centre.
