Despite the current adverse economic circumstances, the train connections between China and Europe are growing in number and frequency. However, according to a Chinese contribution on RailFreight.com, these growing numbers by themselves are not necessarily positive news [Why irregular trains on the New Silk Road do more harm than good]. First, such statistics could provide a ‘false positive’, i.e. the favourable outcome might remain a paper reality. This could distract policymakers, leading to misuse of public money. Second, increasing costs might dissuade customers in the long term. Transportation is a sector known for fierce competition. When the Chinese government ends its subsidies for these rail services, as it announced it would do sooner or later, many customers may go back to using transport by sea which is cheaper. Lastly, according to the same article, the Chinese government should focus more on using the train services to Europe for creating employment and economic growth rather than increasing the volume of trains as a goal in itself.
Mozambique is becoming more important for geopolitical reasons. It caught the attention of China, Russia, US and UK. Access to natural resources (Liquefied Natural Gas) might be the reason for this. It is hard to discern the dynamics. Block 4 project (Mozambique Rovuma Ventures) is an example. On the one hand the participants are enterprises from the aforementioned countries, such as: a partnership owned by ExxonMobil, ENI and the China National Petroleum Corporation, which together control 70% of the holding, with the remaining 30% split into equal parts between Portuguese group Galp Energia, South Korea’s Kogas and Mozambican state oil company ENH. This illustrates how interests result in close cooperation, and provides hope for the future. On the other hand, it seems that clusters of countries are heavily competing with each other. This makes the situation more ambiguous, which shows that there are hurdles to be taken before these countries will work closer with one and other [The United States Answer To China’s BRI In Africa: Finance ISIS In Mozambique As An Alternative To Russian LNG]. The author also notes that this effort may be a ploy to score over China during the upcoming US-elections. Hopefully, this cooperation can defuse the trade war to a degree in order to help the global economy to overcome the raising global (economic) challenges.
A. Çikmazkara
|
|
