(Beijing) – China has launched a new logistics initiative to enhance trade with Africa by consolidating several major companies, aiming to create a comprehensive platform to streamline global commerce and logistics.
Kenya stands to benefit from a new initiative led by China to consolidate various logistics and development companies into one organization focused on boosting trade between China and Africa. The newly launched Global Silk Road (Chongqing) Hub Port International Supply Chain Ltd, established in Chongqing, China last week, is set to serve as the major shipping and logistics link between China and its African trade partners.
The move is expected to strengthen trade routes, with Congo taking the lead in Eastern Africa, leveraging the region’s Northern Corridor for imports through the Port of Mombasa. The Northern Corridor, which spans 1,700 kilometers and links Kenya, Uganda, Rwanda, Burundi, and the Eastern Democratic Republic of Congo, remains a vital route for trade in the region. The port of Dar es Salaam in Tanzania also plays a significant role in facilitating trade in East Africa, particularly for countries along the Central Corridor.
Several companies have merged to form this new logistics conglomerate. Among the key players are Shanghai Greenroad Warehousing and Logistics Group Co Ltd, Zhejiang Holley Global Industry Development Ltd, Chongqing Jiangjin Hub Port Industrial Park Operation Group Ltd, and New Land-Sea Corridor Operation Ltd. This newly unified entity is aimed at making global supply chains more integrated and efficient.
The Northern Corridor, vital for trade in the region, facilitates export and import activities in East Africa through a combination of rail, road, and lake transportation. Kenya’s position as a key trade hub is expected to be further solidified with the potential expansion of the Standard Gauge Railway to the Democratic Republic of Congo. The Kenyan government has expressed interest in exploring private partnerships to realize this vision, which could give Kenya an edge over other regional ports like Dar es Salaam.
At the launch of the Global Silk Road (Chongqing) Hub Port International Supply Chain Ltd, discussions centered on building an integrated platform for global commerce and logistics. The event also addressed the need for efficient supply chain systems to improve trade relations between China and African countries. Togo, South Sudan, Sierra Leone, and Madagascar are expected to benefit from this new logistics initiative, along with countries in the East African Community (EAC).
The logistics meeting was hosted by the China-Africa Business Council, under the leadership of Xu Qun, and attended by key African envoys based in China. The discussions also focused on building a stable and efficient supply chain, which is critical for national economic prosperity in the increasingly interconnected global economy.
The conference, which was part of the New International Land-Sea Trade Corridor Economic Development Forum, included nearly 150 participants, including government officials, academics, industry leaders, and corporate delegates from regions such as Chongqing, Guizhou, Gansu, and Sichuan.
The forum resolved that the stability and efficiency of supply chains are crucial to ensuring economic growth. The China-Africa Business Council aims to implement President Xi Jinping’s connectivity partnership initiative, introduced at the FOCAC Beijing Summit. This initiative will foster a comprehensive China-Africa interconnected network to strengthen the global supply chain.
The event also launched initiatives supporting the 13 provinces and two regions along China’s New International Land-Sea Trade Corridor, focusing on improving global connectivity and strengthening supply chain resilience.
| Key Developments | Details |
|---|---|
| New Initiative | Global Silk Road (Chongqing) Hub Port International Supply Chain Ltd launched |
| Key Players | Shanghai Greenroad, Zhejiang Holley, Chongqing Jiangjin, New Land-Sea Corridor |
| Key Trade Routes | Northern Corridor (Mombasa to DRC) & Central Corridor (Dar es Salaam) |
| Benefit to Kenya | Enhanced role as a trade hub with potential SGR extension to DRC |
| Africa’s Beneficiaries | Togo, South Sudan, Sierra Leone, Madagascar, East African nations |
| Forum Focus | Enhancing global commerce and logistics, strengthening global supply chains |