Xi'an International Inland Port Multimodal Transportation Company has unveiled China's plan to launch a freight service from Xi'an, the capital of Shaanxi province, to Southeast Asian countries, including Thailand, by the end of this year under the much-touted Belt and Road Initiative (BRI).
Located in Xi'an International Trade and Logistics Park, the company operates the China Railway Express or Chang'an that runs from Xi'an to Europe and Central Asia. It has had more than 2,788 departures from Xi'an and carried more than 215,382 containers since 2013. The Sino-Europe train is Xi'an's strategy to build a new starting point for the Silk Road Economic Belt.
Zhao Yue, the vice-general manager of the company, said the cargo service for Southeast Asia will differ from Chang'an because it will travel in another direction from North to South.
"It is based on land and sea transportation. Trains will run from inland cities, like Xi'an, to port cities in Guangxi province and unload cargo to ships that will sail to regional countries, such as Thailand, Indonesia and Vietnam. We plan to launch operations by the end of this year," she told the Bangkok Post at a recent press briefing.
The trip to Xi'an and Weinan was recently organised by the Information Office of Xi'an Municipality and China Radio International (CRI) Online.
Ms Zhao said work on the new freight service, which combines rail and maritime transportation, got underway in August this year.
"We are beginning the project which covers 12 western cities of China, including Xi'an. Our provincial government is making progress with the plan," she added.
The new cargo line will be in addition to the ongoing Sino-Thai high-speed railway project that will be finished by 2023.
Rejuvenating Xi'an
China is now opening up Xi'an to the outside world. Qiang Xiaoan, the deputy mayor of Xi'an Municipal People's Government, stressed the historical significance of the capital city of Shaanxi province for the ongoing BRI.
"Xi'an was the starting point of the ancient Silk Road. More than 2,000 years ago, Zhang Qian, a Chinese diplomat during the Han dynasty, set off from Xi'an and opened up the avenue of communication between China and the world," he said.
Jiang Shaoning, the executive vice-minister of the Propaganda Department of the Xi'an Municipal Committee, said Xi'an has been integrating into the BRI for six years to become a world city and cultural capital.
"It is seizing the opportunities offered by the Shaanxi Pilot Free Trade Zone and the Belt and Road core area to promote key projects, such as the China-Europe Railway of Chang'an," he said.
Zhang Xiaoning, the deputy director of the Propaganda Department of the Xi'an Municipal Committee, said Xi'an is upgrading to become the core of the new Silk Road.
"This year marks the 70th anniversary of the founding of the People's Republic of China and the 6th anniversary of the BRI. It is crucial that Xi'an accelerate the construction of the national central city," he said.
Boosting the economy
Prinn Panitchpakdi, the deputy leader and head of the economics team of the Democrat Party, said the new freight service will expand Thailand's customer base because China is the world's most populous country.
"If it comes to fruition, it will improve our under-resourced logistics and boost our trade. However, we must upgrade our products, especially agricultural commodities, to premium quality. It is obvious that China is more assertive in Thailand. Accordingly, we should reposition ourselves and invest [more substantially] in research and development," he told the Bangkok Post.
Mr Prinn, who also serves as the country head of CLSA Securities Thailand, warned of the BRI's political repercussions.
"We must manage our relationships carefully because we are doing business with many countries, such as the United States, Japan, and South Korea.
Therefore, we should not give preferential treatment to any trading partner to avoid offending diplomatic sensitivities," he said.
Meanwhile, Pithaya Pookaman, a former Thai ambassador, said the One Belt One Road strategy allows China to flex its muscles.
"All routes will eventually lead to Beijing. Its growing economy and military force can rival the US. Accordingly, it is natural for China to expand the new commercial route," he said.