Belt and Road Initiative
Logistics market analysis for the new Silk Road
The Militzer & Münch Group analyzed the logistics market along the New Silk Road. The aim: to find out more about the decision-making processes for logistics projects in China and to examine what share logistics services have in the Belt and Road Initiative (BRI).
With the so-called "Belt and Road Initiative", China is planning to expand cross-border trade corridors - a new Silk Road, so to speak. The expansion also offers great potential for logistics companies. In the "BRI" project, also known as the "New Silk Road", China is investing heavily in the development and expansion of intercontinental trade and infrastructure networks between Europe, Asia and Africa (current estimated total investment volume: around 1.1 trillion US dollars). The awarding of contracts for BRI projects was examined in the study. It came to the conclusion that in China, 80 percent of logistics contracts in the context of BRI are awarded to Chinese companies.
A project team from the University of Applied Sciences St. Gallen and the University of Shanghai carried out the market analysis on behalf of Militzer & Münch. This included numerous personal interviews in Shanghai as well as additional telephone interviews with decision-makers from the logistics sector. "The cooperation with the University of St. Gallen and the University of Shanghai offered an ideal local approach for intensive research in China", says Christoph Hollenstein, Head of Group Controlling at M&M Militzer & Münch International Holding AG.
Militzer & Münch is observing a shift in decision-makers in the logistics market. "Today, logistics decisions are mainly made in Europe and the USA", says Dr. Lothar Thoma, CEO M&M Militzer & Münch International Holding AG. "In future, this will increasingly happen from China, as large Chinese companies are increasingly conquering the global market and establishing their own supply chains."
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