Blog 02 May 2018 Updated 17 Jan 2020 Sino-Singapore Trade 8 ways Singapore firms can benefit from the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity – New International Land-Sea Trade Corridor Share: The China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity – New International Land-Sea Trade Corridor is the newest rail-sea transport corridor between China and Southeast Asia, offering a shorter and more direct multimodal transportation option between Chongqing and Singapore. Find out more about the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity – New International Land-Sea Trade Corridor (CCI-ILSTC) here. 4 Quick Facts on CCI-ILSTC Where is the CCI-ILSTC? CCI-ILSTC is a rail-sea multimodal transportation route linking Chongqing in Western China to Singapore. Cargo can be shipped on rail from Chongqing to Qinzhou Port in South-western China’s Guangxi Province, and transferred to ships bound for Singapore and other parts of the world; and vice versa. How will the New International Land-Sea Trade Corridor play a part in China’s Belt and Road Initiative (BRI)? The CCI-ILSTC links the Belt (the overland Silk Road Economic Belt) and the Road (the 21st Century Maritime Silk Road) via rail and sea, which makes Singapore a key node on the BRI. How will China benefit from this new trade route? CCI-ILSTC will anchor Chongqing as the inland international logistics hub in Western China, giving Chongqing and Western China more direct and shorter access to international maritime trade. This would help drive economic growth in the Western China provinces of Gansu, Guizhou, Shaanxi and Sichuan. How will Southeast Asia benefit from the new trade route? Southeast Asian products can enter Western China through the CCI-ILSTC, not only saving time but also potentially overall costs. Conversely, Western China products can take a much shorter time to reach Southeast Asia through this route. How Singapore Businesses Can Benefit Enterprise Singapore (formerly International Enterprise Singapore) held its inaugural CCI-ILSTC seminar on 13 February 2018, where speakers from the Ministry of Trade and Industry and the Singapore Customs provided perspectives on how businesses can benefit from using the CCI-ILSTC, and the policies and programmes they can tap to increase market access into Chongqing (and Western China). The Sino-Singapore Chongqing Connectivity Solutions Co. Ltd (SSCCS), the Singapore and Chongqing Joint Venture Company developing the CCI-ILSTC and piloting innovative multimodal logistics solutions on the CCI-ILSTC shared the progress it has made, and how more businesses can work with them to increase trade flows on the CCI-ILSTC. As strategic partners of the SSCCS, vCargo Cloud spoke on its innovative platform that will capture the transport and logistics data for businesses to enhance their overall trade on CCI-ILSTC, and Pacific International Lines (PIL) spoke on the sea-rail multimodal services that are currently available between Singapore and Chongqing via Qinzhou Port. 8 Things to Look Out For Singapore businesses can capture new opportunities given the New International Land-Sea Trade Corridor's strong global and local position The new corridor is situated at the confluence of three major trade corridors: China-Europe, China-ASEAN and China-Yangtze River. Within China, the corridor is a key intersection of the BRI, the Yangtze River Economic Belt and the western region. Singapore businesses can save time and money via CCI-ILSTC CCI-ILSTC will reduce the time taken for goods travelling from Singapore to Chongqing from four weeks to about a week. This will potentially lower logistics costs and enhance cross-border trade. CCI-ILSTC is also a cost-competitive alternative route suitable for time-sensitive and high-value products such as fruits, meat and electronics. Singapore businesses can testbed innovative policies on the CCI-ILSTC CCI-ILSTC is identified as a “priority demonstration project” by China and Singapore, which allows companies to testbed new and innovative solutions on the CCI-ILSTC. If successful, there will be opportunities to replicate them in other parts of China. Singapore businesses can pave the way for CCI-ILSTC’s digital future Singapore’s involvement in CCI-ILSTC is not only about moving goods; it will also be about digitalisation. An example is vCargo Cloud’s digitalisation of CCI-ILSTC’s work flows on a cloud-based platform, which syncs and shares the information provided by different parties from trade, logistics and supply chain. This builds an ecosystem of stakeholders and simplifies cross-border trade. Singapore businesses can be assured of trade security on the CCI-ILSTC Since 2012, Singapore companies that have received the Secure Trade Partnership Certification from the Singapore Customs can enjoy faster and more secure customs clearance for goods traded between China and Singapore. We encourage more Singapore companies to obtain this Certification to capture more trade on the CCI-ILSTC. Singapore businesses can participate in the development of logistics standards and practices Today, Singapore’s Pacific International Lines calls at the Qinzhou Port twice a week, and has helped to reduce shipping time for customers by offering sea-rail transhipment on the New International Land-Sea Trade Corridor. Singapore businesses that have expertise in developing logistics standards and practices can also offer their expertise and knowledge to enhance the overall efficiency of the CCI-ILSTC. Singapore businesses can take advantage of several modes of transport within Chongqing itself Chongqing is now connected by air, rail, river and road, providing more options for transporting of goods. This means opportunities not just for trade, but the entire value chain across logistics such as third party logistics, warehousing, as well as related services that could arise as a result of businesses converging here. Singapore businesses can be a part of Western China’s development strategy China is boosting growth in the western cities through the Five-Year Plan (2016-2020). Part of the plan is to increase foreign direct investments through infrastructure, education and talent. The forecasted growth for most of Western China is 10% to 12% annually through 2020. This means opportunities for international businesses including Singapore. Find out more about doing business in China and key business opportunities here.