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1 – 10 of 121Xu Zhang and Hans-Joachim Schramm
This paper presents an overview of the recent development of Eurasian rail freight in the Belt and Road era and further evaluates its service quality in terms of transit times and…
Abstract
Purpose
This paper presents an overview of the recent development of Eurasian rail freight in the Belt and Road era and further evaluates its service quality in terms of transit times and transport costs compared to other transport modes in containerised supply chains between Europe and China.
Design/methodology/approach
A trade-off model of transit time and transport costs based on quantitative data from primary and secondary sources is developed to demonstrate the market niche for Eurasian rail freight vis-a-vis the more established modes of transport of sea, air and sea/air. In a scenario analysis, further cargo attributes influencing modal choice are employed to show for which cargo type Eurasian rail freight service is favourable from a shipper's point of view.
Findings
At present, Eurasian rail freight is about 80% less expensive than air freight with only half of the transit time of conventional sea freight. Our scenario analysis further suggests that for shipping time-sensitive goods with lower cargo value ranging from $US1.23/kg to $US10.89/kg as well as goods with lower time sensitivity and higher value in a range of $US2.46/kg to $US21.78/kg, total logistics costs of Eurasian rail freight service rail is cheaper than all other modes of transport.
Practical implications
As an emerging competitive solution, Eurasian rail freight demonstrates to be an option beneficial in terms of transport cost, transit time, reliability and service availability, which offers a cost-efficient option enabling shippers to build up agile and more sustainable supply chains between China and Europe.
Originality/value
Our study firstly provides a comprehensive assessment of present Eurasian rail freight including a thorough comparison with alternative modes of transport from a shipper's point of view.
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Per Hilletofth, Olli‐Pekka Hilmola and Frida Claesson
Research work describes in‐transit distribution strategy by determining and analyzing key principles of it as well as by illustrating its application in practice. Emphasis on…
Abstract
Purpose
Research work describes in‐transit distribution strategy by determining and analyzing key principles of it as well as by illustrating its application in practice. Emphasis on in‐transit distribution strategy is to turn transportation pipeline as a mobile inventory holding place, and actively dispatching goods to a destination, where there is a predicted demand before any customer orders are actually received. The use of this strategy is supported by current trade flows: emerging market trade has increased considerably, but simultaneously Swedish export prices, for example, have significantly decreased. The paper aims to address this issue.
Design/methodology/approach
In‐transit strategy is examined through a multiple case study from industrial companies having main factory operations in Sweden as well as using a system dynamics simulation model, and Monte Carlo analysis. These are supported by the second hand data of trade flows between Sweden, and India and China.
Findings
In order to be successful with in‐transit strategy, the case studies show that excellent planning, working closely with customers, first‐class market knowledge, and an enterprise resource planning (ERP) system that is able to support the process sufficiently are required. Other highlighted requirements of this strategy are low variation in demand, and predictable distribution lead‐time. Simulation study of one hypothetical product group verified case study findings, but the authors find it interesting that manufacturing output variance especially is very sensitive regarding to the overall results. If variation increases, then in‐transit strategy is not able to deliver for customers with the necessary accuracy. Also increasing average customer demand, and longer transportation delays lead to undesired outcomes (e.g. too much inventory or out of stock situations).
Research limitations/implications
The case study and second hand analysis is limited to one country, and further evidence is needed from other European, and possibly North American companies, to verify these findings.
Originality/value
There has been a rather limited amount of research works completed from the use of in‐transit strategy, even if increased trade activity and lower price of exported items is that of the old west in their exports to emerging markets, and continues to be so in the future (was even strong to China during credit crunch year 2009). Our research is seminal in terms of a developed system dynamics simulation model.
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Yulia Panova, Eugene Korovyakovsky, Anton Semerkin, Ville Henttu, Weidong Li and Olli-Pekka Hilmola
This research examines factors that determine the improvement of the Russian supply chain sustainability. The strategic business model incorporates ecological, social and economic…
Abstract
Purpose
This research examines factors that determine the improvement of the Russian supply chain sustainability. The strategic business model incorporates ecological, social and economic aspects.
Design/methodology/approach
Considering Trans-Siberian Railway as a typical case, the study selected several cases or the parts of the primary rail connection with the affiliation of important neighbouring countries. The study uses quantitative analyses of a variety of size parameters (e.g. volumes of traffic, logistics costs, delivery distance and air pollutants).
Findings
The empirical findings stress that supply chains should favour in the future railway (or intermodal) connections for piggyback and containerised cargo. Herein lays the reason for the examination of all traditional factors affecting the modal choice and their complementation by the parameters to measure sustainability throughout the supply chains. The inclusion of the green practices positively affected the environmental, social and economic performance of the new approach.
Research limitations/implications
This research focuses on the delivery of cargo in containers and semi-trailers within wagons through the overland corridors. Despite the restrictive empirical findings within the national transport system, some elements can be representative of the international supply chains, provided that intermodal services are the most appropriate for the transportation over long distances.
Practical implications
Clients, media and regulatory bodies stress the consideration of environmental aspects at all stages of a global supply chain. Therefore, their adoption into strategic imperatives of local supply chains becomes inevitable.
Originality/value
An assessment of supply chains for longer distance transportation in Russia has not taken sustainability into account within cost analyses.
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Muhammad Imran, Abdul Sattar and Md Shabbir Alam
Economic ties and formation of trade blocks escalates the movement of goods among the participants and bring different economic and structural changes. Therefore, the current…
Abstract
Purpose
Economic ties and formation of trade blocks escalates the movement of goods among the participants and bring different economic and structural changes. Therefore, the current research emphasises on the distribution of market structure and industrial value added among the participant countries of China–Pakistan economic corridor project while focussing on pre and post FTA status.
Design/methodology/approach
This study utilises the footloose capital model for analysing whether China or Pakistan is more suitable for attracting factors of production to increase their share of industrial value added. For econometric analyses the current research utilises data from 1995 to 2018 and maximum likelihood effect method to assess factors that affect regional value-added distribution.
Findings
Results show that both countries owe different level of economic developments. Effect of capital is, comparatively, similar for both countries while Pakistan supports trade openness which points towards the fact of positive utilisation of abundant labour resources in Pakistan by establishing industrial structure either through domestic capital formation or foreign investment. Whereas, share of labour and trade openness of China positively affect value added production of China.
Originality/value
This is one of the unique studies that studies the regional economic treaties usefulness for any developing country across Asia. Where this study uses the footloose capital model and maximum likelihood method for its analysis which is not previously done, while for detailed analyses the study further divides the timeframe into two parts as pre-FTA ranges from 1995 to 2006, post-FTA from 2007 to 2018 while overall results consist of whole-time frame.
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The author explains how the story of China geo-political vision has recently taken a new turn under the leadership of Xi Jinping, and signals a major shift towards a more…
Abstract
Purpose
The author explains how the story of China geo-political vision has recently taken a new turn under the leadership of Xi Jinping, and signals a major shift towards a more expansive and outward-looking economic policy.
Design/methodology/approach
Understanding more fully what is happening in the latest phase of China’s modern resurgence is a strategic imperative for both public policy analysts and corporate leaders with global interests and ambitions.
Findings
China is now convinced that extending its ‘infrastructure and connectivity” focus outwards in this way will help ‘to dismantle investment barriers, create new trade routes, improve international logistics and deepen financial integration.’
Practical implications
Beijing is ‘adamant’ that it should not be called a ‘plan’ or a ‘strategy’ lest it ‘be interpreted as ruse to build a vast economic empire.’
Originality/value
China's BRI extends beyond ports, railways and highways to other major types of infrastructure including oil and gas pipelines, electricity power plants and telecommunications networks. So the invitation to be part of BRI presents ‘a vast economic carrot,’ and the prospect of becoming major hubs on emerging new pan-regional trade routes is enormously attractive to many of China’s underdeveloped neighbors. 10;
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Omar Khalid Bhatti and Ali Raza Hanjra
This paper aims to attempt to investigate if the now-existing upstream Sost Dry Port in Gilgit-Baltistan and the prospective midstream Havelian Dry Port in Khyber Pakhtunkhwa…
Abstract
Purpose
This paper aims to attempt to investigate if the now-existing upstream Sost Dry Port in Gilgit-Baltistan and the prospective midstream Havelian Dry Port in Khyber Pakhtunkhwa, both part of One Belt One Road (OBOR), are expected to compete against or complement each other in terms of port efficiency and location, and which of the two ports should first be developed in the wake of uninterrupted logistics flow of cargo on the Economic Corridor.
Design/methodology/approach
Analytic hierarchy process (AHP) has been used for multi-criteria decision making by the stakeholders. Five main criteria for transhipment port selection, ranging from port location, port efficiency, intermodal connectivity, port costs and cargo volume were used with three sub-criteria each.
Findings
This study demonstrates the results that favour physical infrastructural development initiatives prioritized for the Sost Dry Port in view of its strategic location as the upstream supply chain node on the Economic Corridor, imparting efficiency to the logistics flow.
Practical implications
Results of this study may assist policymakers in achieving goals like enhancing trade facilitation, reducing congestion and increasing cargo security on OBOR.
Originality/value
To the best of the authors’ knowledge, this is the first study of its kind that analyzes priority for immediate development intervention for either Sost or Havelian Dry Port, both located on CPEC – OBOR supply chain.
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Belt and road initiative (BRI) is a transcontinental endeavor strategically connecting supply chains (SCs) and economic infrastructures to ignite business activities and achieve…
Abstract
Purpose
Belt and road initiative (BRI) is a transcontinental endeavor strategically connecting supply chains (SCs) and economic infrastructures to ignite business activities and achieve trade benefits. However, the rising global SC failure costs and risks associated with this initiative (owing to unique geopolitical, economic and mega-connectivity involving over 70 countries) necessitate examining BRI SC risks. Yet, research on the subject remains limited, and the purpose of this paper is to address this gap in knowledge.
Design/methodology/approach
A two-pronged approach was taken. First, a data sample of 554 articles was analyzed and 178 articles found relevant were used to present a systematic, structured framework of risk factors along operational, economic, financial, social and security dimensions. Then informed by the theory of risk management and supplemented by literature evidence, we have built a BRI SC risk model.
Findings
The results presented through the model show that BRI SCs face a combination of risks triggered by operational processes, informational and environmental (PIE) deficiencies. Findings show that lack of risk and liability management, unbalanced risk-sharing partnerships, lack of transparency, inadequate project evaluation, incompatible corporate governance structures and cyber security all pose threats to BRI SCs specifically and SCs in general.
Research limitations/implications
Academically, the results facilitate theory development by identifying and proposing seven risk factors and modeling relationship among them and BRI SC risks outcome. The results also extend application of theory of risk management to SC context.
Practical implications
The findings provide a decision-making tool for managers to assess risk factors in their SCs, thus enabling improved decision making to avoid, mitigate, transfer or accept risks.
Originality/value
Identifies and proposes a set of seven risk factors that drive BRI SC risks. Develops a model of BRI SC risks which help build theory of SC risk management.
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Anna Eremina and Chan-Hyun Sohn
Recently the route connecting the trans-Korean railway and the trans-Siberian railway has become of particular interest for many academics and policy-makers in East Asian…
Abstract
Recently the route connecting the trans-Korean railway and the trans-Siberian railway has become of particular interest for many academics and policy-makers in East Asian countries. The extensive review of previous studies, however, reveals that literature on the subject is lacking solid analytical framework. Most studies are one-sided, focusing on the political aspects of the issue or paying little attention to the economic aspects of the problem.
This study intends to develop an analytical framework through which the most efficient route among four major alternative routes connecting the trans-Korean and trans-Siberian railways can be identified. It attempts to assign priorities to the four alternative routes according to their level of economic efficiency.
This study utilizes a simple cost-benefit analysis in evaluating the four routes. Cost side, transportation time, effectiveness of customs procedures, and gauge difference are selected as the main economic factors. The volume of cargo, industrial production in adjacent regions, access to natural resources, and market size and foreign investment climate are used to evaluate the benefits of the routes.
The study concludes that Route 3, which connects ‘Busan - Seoul (South Korea) –Pyongyang -Sinuiju (North Korea) –Shenyang –Beijing - Erenhot (China) –Ulaanbaatar (Mongolia) –Ulan-Ude - Moscow (Russia)’ is the most efficient route.
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Le Tao, Yun Su and Xiuqi Fang
The intended nationally determined contributions (INDCs) is a major outcome of the Paris Agreement on international cooperation to reduce emissions, and is likely to be the future…
Abstract
Purpose
The intended nationally determined contributions (INDCs) is a major outcome of the Paris Agreement on international cooperation to reduce emissions, and is likely to be the future scenario for carbon emissions. This paper aims to obtain the fine spatial pattern of carbon emissions in 2030, identify hot spots and analyze changes of carbon emissions with a spatial grid method.
Design/methodology/approach
Based on the integrated quantified INDCs of each economy in 2030, the authors predict the population density pattern in 2030 by using the statistics of current population density, natural growth rates and differences in population growth resulting from urbanization within countries. Then the authors regard population density as a comprehensive socioeconomic indicator for the top-bottom allocation of the INDC data to a 0.1° × 0.1° grid. Then, the grid spatial pattern of carbon emissions in 2030 is compared with that in 2016.
Findings
Under the unconditional and conditional scenarios, the global carbon emission grid values in 2030 will be within [0, 59,200.911] ktCO2 and [0, 51,800.942] ktCO2, respectively; eastern China, northern India, Western Europe and North America will continue to be the major emitters; grid carbon emissions will increase in most parts of the world compared to 2016, especially in densely populated areas.
Originality/value
While many studies have explored the overall global carbon emissions or warming under the INDC scenario, attention to spatial details is also required to help us make better emissions attributions and policy decisions from the perspective of the grid unit rather than the administrative unit.
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According to official statements, BRI is a Chinese call for global cooperation, based on five priorities: policy coordination, facilities connectivity, unimpeded trade, financial…
Abstract
Purpose
According to official statements, BRI is a Chinese call for global cooperation, based on five priorities: policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bonds. The purpose of this paper is, primarily, to describe and contextualize the official discourse of China's foreign policy toward Latin America, emphasizing on BRI. On that basis, the author aims to contrast official rhetoric with real facts, bringing problematic cases associated with implementing BRI in Asian and African developing countries, so as to discuss possible challenges that Latin America can encounter when implementing the initiative. Finally, the author evaluates potential implications of resembling the Chinese three-level scheme of development in the region and make suggestions on this subject.
Design/methodology/approach
In an effort to evaluate possible implications of BRI in Latin America, the paper describes and contextualizes Chinese foreign policy official rhetoric toward the region's countries. Based on that, the author brings to discussion Asian and African experiences in the implementation of the initiative and raise questions on controversial issues that Latin America could meet when enforcing BRI-related projects.
Findings
As a part of its new foreign and economic policies, China continues to strengthen its engagement with Latin American countries, enlarging its strategy though the promotion of BRI. If Latin American countries, through BRI, seek to replicate the Chinese three-level of development scheme, including domestic, regional and global scopes, certain controversial issues cannot be ignored in the design and implementation processes. Also, equal participation of Chinese and Latin American governments, societies and enterprises is decisive if the goal is to settle a long-term development scenario for the region.
Originality/value
The central thesis of this paper is that the implementation of BRI in Latin American countries could potentially replicate the Chinese three-level development proposal. To achieve such an ambitious goal, much depends on how Latin American countries define and enforce BRI projects. Full understanding of those challenges requires close attention to what the Chinese official rhetoric claims and what actually puts into practice in other developing countries already involved in BRI, so as to anticipate possible consequences for the region.
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