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Article
Publication date: 11 September 2017

Key factors in developing transit trade corridors in Northeast Asia

Sang-Won Lim, Kamonchanok Suthiwartnarueput, Ahmad Abareshi, Paul Tae-Woo Lee and Yann Duval

The purpose of this paper is to investigate key critical factors for developing transit trade corridors (TTCs) in optimizing trade and logistics performance, taking into…

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Abstract

Purpose

The purpose of this paper is to investigate key critical factors for developing transit trade corridors (TTCs) in optimizing trade and logistics performance, taking into account economic, geographic and political concerns among countries in the Northeast Asia region, which have been dynamically developing TTCs to optimize trade and logistics performance in association with development of transport infrastructure in the Greater Tumen Region located in the Northeast Asia.

Design/methodology/approach

This research explores key factors affecting the TTC through a comprehensive literature review in tandem with expert survey. Factor analysis, both exploratory and confirmatory, is employed to further investigate the underlying factors affecting more efficient development of a TTC.

Findings

This research has drawn eight underlying factors affecting the design of a TTC: development and policy implications; safety, security and political concerns; environmental protection; financing and investment; soft infrastructure; hard infrastructure; geography and landscape; and corridor performance.

Research limitations/implications

This paper has a limited geographical scope of the Northeast Asia. Therefore, more primary data collection would be useful in future work. Development of International trade corridor and TTC is critical in northeast Asia for moving goods through designated geographical paths. The key factors drawn in this paper contributes not only to promoting its related services and information (across borders) with the provision of policy support and related facilities for TTC but also to lowering logistics costs and improving trades in the northeast Asian region. As a result, the countries in the region will accelerate their regional economies in collaboration with international bodies and framework, such as UNDP, Greater Tumen Initiative and One Belt One Road Initiative.

Practical implications

The eight underlying factors the authors identified in this research will be valuable for policy-makers to design TTCs and consequently the research will contribute to regional economies in northeast Asia by establishing efficient trade and transport routes among the countries in the region.

Social implications

Developing TTCs is a kind of platform and infrastructure to accelerate cargo movements and people movements in the northeast Asia. Users of TTCs will benefit their businesses thanks to an efficient logistics system and lower logistics costs, which result in promoting international and regional trade in the region.

Originality/value

There has not been any research done on factors to consider in developing TTCs in the world, whose consequence is no readily available reference that can support a systematic assessment and decision-making in development of TTCs. The findings of this research provide a helpful reference for policy-makers, potential users and developers of TTCs to refer in planning and developing them.

Details

Journal of Korea Trade, vol. 21 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/JKT-05-2017-0046
ISSN: 1229-828X

Keywords

  • Factor analysis
  • Northeast Asia
  • Greater Tumen region
  • One belt one road
  • Transit trade corridor

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Article
Publication date: 10 September 2018

Promoting Korean international trade in the East Sea Economic Rim in the context of the Belt and Road Initiative

Paul Tae-Woo Lee, Sung-Woo Lee, Zhi-Hua Hu, Kyoung-Suk Choi, Na Young Hwan Choi and Sung-Ho Shin

The purpose of this paper is to analyze maritime logistics connectivity of ports and shipping networks in the East Sea Economic Rim (ESER) to promote international trade…

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Abstract

Purpose

The purpose of this paper is to analyze maritime logistics connectivity of ports and shipping networks in the East Sea Economic Rim (ESER) to promote international trade in the context of China’s Belt and Road Initiative (BRI), considering centrality, primary flow and clustering interaction.

Design/methodology/approach

The paper applies a complex network model, using a big data system consisting of an automated identification system, electronic data interchange and distributive and complex data. Three perspectives, including connectivity in trading ports and regions, centralities in the realm of complex network and potential marketing and regional impacts, and sixteen criteria are considered for this analysis. A visual approach has been also applied to highlight port connectivity and ship flows for the reader’s convenience.

Findings

The paper shows that port connectivity and maritime logistics are enablers to promote Korean international trade in Northeast China through the ESER, and 25 major ports are well connected to promote international trade in the region with visual data of ship flows by ship type and by flag.

Research limitations/implications

Owing to the lack of port management information systems among the countries in the ESER except Korea and Japan, this paper could not capture cargo types and amounts on board. Port connectivity analysis shows links of the ports in the ESER to major ports in southeast Asia along the Twenty-first Century Maritime Silk Road (MSR). These results contribute to drawing policy implications to promote the ESER and provide suggestions for promoting Korean international trade by enhancing maritime logistics connectivity.

Originality/value

Unlike the existing literature showing descriptive and policy-oriented research related to ESER, this paper applied a vigorous method with a big amount of data to analyze port connectivity and ship flows in the ESER, considering China’s BRI affecting the global supply chain system, maritime transportation, and logistics. In addition, the paper shows how the seaports in the ESER are connected along the MSR.

Details

Journal of Korea Trade, vol. 22 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/JKT-03-2018-0015
ISSN: 1229-828X

Keywords

  • Big data
  • Complex network
  • Belt and Road Initiative
  • East Sea Economic Rim
  • Korea international trade
  • Port connectivity

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Expert briefing
Publication date: 19 April 2018

India's Afghan role will be less than Pakistan fears

Location:
AFGHANISTAN/INDIA

Indian policy on Afghanistan.

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DOI: 10.1108/OXAN-DB232206

ISSN: 2633-304X

Keywords

Geographic
Afghanistan
India
AP
Pakistan
Central Asia
Iran
United States
AFGHANISTAN/INDIA
Topical
economy
international relations
politics
foreign policy
foreign trade
regional
transport
arms
civil war
defence
foreign investment
talks
railway
shipping
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Expert briefing
Publication date: 11 November 2016

Trump worries will weigh on Canada's economic agenda

Location:
CANADA

Trump’s victory in the US presidential election has created worries in Ottawa that a more protectionist line from Washington could further dampen weak Canadian business…

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Details

DOI: 10.1108/OXAN-DB214931

ISSN: 2633-304X

Keywords

Geographic
Canada
NA
Asia
China
Mexico
United States
Topical
economy
industry
international relations
politics
election
energy
fiscal
foreign policy
foreign trade
gas
growth
manufacturing
oil
party
regulation
renewable energy
treaty
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Article
Publication date: 1 February 2011

In‐transit distribution strategy: solution for European factory competitiveness?

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…

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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.

Details

Industrial Management & Data Systems, vol. 111 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/02635571111099712
ISSN: 0263-5577

Keywords

  • Distribution
  • Manufacturing systems
  • International marketing
  • Sweden
  • Case studies

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Article
Publication date: 16 June 2020

Assessing the market niche of Eurasian rail freight in the belt and road era

Xu 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…

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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.

Details

The International Journal of Logistics Management, vol. 31 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/IJLM-12-2019-0351
ISSN: 0957-4093

Keywords

  • Belt and road initiative
  • Eurasian land bridge
  • Trans-Siberian railway
  • Container block train
  • Service quality
  • Transport cost
  • Transit time
  • Cargo value
  • Value to weight ratio

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Article
Publication date: 1 November 2001

Multimodal transport: the case of Laotian garment exporters

Ruth Banomyong and Anthony K.C. Beresford

This paper explores the various alternative routes and methods available to garment exporters in Lao PDR, a land‐locked country in South East Asia, when exporting to the…

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Abstract

This paper explores the various alternative routes and methods available to garment exporters in Lao PDR, a land‐locked country in South East Asia, when exporting to the European Union. Lao exporters are dependent on the transport systems in place in neighbouring countries (i.e. Vietnam, Thailand, Malaysia and Singapore) for transit purposes. A multimodal transport cost‐model is used to illustrate and clarify multimodal transport routeing alternatives. A confidence index is also introduced for each route, transport modes and nodal links. Five routeing alternatives are presented in this paper and it is shown that the most frequently utilised route via Bangkok (Thailand) is not necessarily the most competitive in terms of time and cost, while the route via Port Klang (Malaysia) potentially offers a better alternative for Lao garment exporters.

Details

International Journal of Physical Distribution & Logistics Management, vol. 31 no. 9
Type: Research Article
DOI: https://doi.org/10.1108/09600030110408161
ISSN: 0960-0035

Keywords

  • Developing countries
  • Transport operations
  • Modelling
  • Export
  • Lao

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Article
Publication date: 12 April 2011

Market or geopolitics? The Europeanization of EU's energy corridors

Gonzalo Escribano Francés

The purpose of this article is to explore an energy strategy for the European Union (EU) that could integrate the tensions between geopolitics and the market in a coherent…

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Abstract

Purpose

The purpose of this article is to explore an energy strategy for the European Union (EU) that could integrate the tensions between geopolitics and the market in a coherent and consistent external EU energy policy.

Design/methodology/approach

The approach consists of combining the theoretical framework of international political economy and Europeanization to European energy corridors.

Findings

The article finds that most qualitative energy security scenarios can be conceived as applications of international political economy paradigms. Its main result is to conceptually develop a geo‐economic strategy consisting on the Europeanization of EU's external energy corridors along its own energy regulations and standards.

Research limitations/implications

The article explores a distinct hybrid scenario, the Europeanization of energy corridors, which could be instrumental in overcoming the apparent dilemma between EU's market and geopolitical‐based scenarios.

Originality/value

The original contribution of the article lies in the application of international political economy and Europeanization theories to energy security scenarios, and the inclusion of governments' preferences in the process of hedging market and geopolitical scenarios.

Details

International Journal of Energy Sector Management, vol. 5 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/17506221111120893
ISSN: 1750-6220

Keywords

  • Political economy
  • Energy industry
  • European Union
  • Europe

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Article
Publication date: 8 June 2015

Overcoming trade logistics challenges: Asia-Pacific experiences

Ben Shepherd and Shintaro Hamanaka

The purpose of this paper is to identify major challenges that Asia-Pacific policy makers face in drawing up international logistics policies, and to seek possible…

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Abstract

Purpose

The purpose of this paper is to identify major challenges that Asia-Pacific policy makers face in drawing up international logistics policies, and to seek possible solutions to the problems.

Design/methodology/approach

Case study method: the paper includes seven case studies that attempt to address various types of logistics challenges. The paper introduces both intra- and extra-regional examples of the ways in which those challenges have been overcome in particular contexts through concerted action by government and the private sector.

Findings

There are a lot of interesting experiences of overcoming logistics challenges, both inside and outside the Asia-Pacific region. Good practice experiences can be replicated by other countries in the region.

Originality/value

While there have been a lot of discussions on logistics policy reforms, this paper is one of the first attempts that clearly link challenges with concrete case experiences where those are overcome. The paper discusses very practical issues in an analytically sound manner, using case method.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 27 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/APJML-09-2014-0133
ISSN: 1355-5855

Keywords

  • International trade
  • International economic integration
  • Regional cooperation
  • Transport and logistics

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Article
Publication date: 7 October 2019

Development prioritization through analytical hierarchy process (AHP) - decision making for port selection on the one belt one road

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…

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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.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 12 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/JCEFTS-04-2019-0020
ISSN: 1754-4408

Keywords

  • Logistics
  • AHP
  • CPEC
  • OBOR
  • Trade facilitation

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