Chongqing - The third session of the inter-provincial consultation and cooperation joint meeting on the New International Land-sea Trade Corridor (ILSTC) will be held in Southwest China's Chongqing on November 1. 

During this session, key documents will be deliberated, and regions along the ILSTC will present the progress of the corridor's construction and outline plans for its future. Also, the ILSTC Economic Development Forum and China-ASEAN Legal Cooperation Forum will be held simultaneously. 

The ILSTC offers a monumental push to the Belt and Road Initiative (BRI), catalyzing enriched collaboration among nations, said Liu Wei, director of the ILSTC's Coordination Center for Logistics and Operation, in a recent interview. 

Statistics indicate that trade volume between the regions along the ILSTC and the ten ASEAN nations surged from 691.6 billion yuan (about 94.51 billion USD) in 2019 to 881.7 billion yuan (about 120.48 billion USD) in 2022, with an average annual growth rate of 8.91%.

Trade volume statistics between the regions along the ILSTC and the ten ASEAN nations. (Graphics/Chen Zhan)

ASEAN specialties easily access the Chinese market 

Despite the global slowdown in trade and investment, the ILSTC has showcased robust operational efficiency and growth potential. Today, various ASEAN specialty goods, such as Thai sticky rice, Malaysian durians, Vietnamese pangasius, and Cambodian bananas, can easily and swiftly access the Chinese market.

The journey of Thai durians to China exemplifies the ILSTC's impact. This past June, a test train for cold-chain transportation from China-Laos-Thailand, loaded with fresh Thai durians, reached Xiaonanya Station in Jiangjin District, Chongqing.

Compared with the earlier conventional cold chain routes between Chongqing and Thailand, the transport duration has been reduced from seven days to four. Moreover, the cost of the product dropped from 50 to 45 yuan/kg, and the retail price is 10% less than it was in 2022.

ILSTC's radiation scope to the world. (Graphics/Chen Zhan)

"With the inauguration of the China-Laos railway, premium rice and charcoal from Laos are now consistently shipped directly to Chongqing, catering to the extensive Chengdu-Chongqing market," commented Liu.

Currently, the ILSTC connects 18 Chinese provinces internally and links to 465 ports in 120 countries globally, encompassing 970 product categories.

Utilize the ILSTC for international shipments

As the operation and organization center of ILSTC, Chongqing has witnessed transformative effects on its industrial landscape and evolution due to the ILSTC's influence.

Highlighting the role of ILSTC in Chongqing's ambitions, Liu said the city's endeavors to build a world-class intelligent connected new energy vehicles (NEVs) industry cluster. 

Chongqing's logistics efficiency to ASEAN countries. (Graphics/Chen Zhan)

For instance, Chongqing's local automaker, Seres, leverages the ILSTC to penetrate global markets, pivoting from conventional fuel vehicles to sophisticated NEVs.

By the close of June 2023, Seres Group had dispatched over 10,000 TEUs of whole vehicles and components through the ILSTC, with a cargo value of 2 billion yuan.

From a logistics standpoint, Chongqing has slashed transportation durations to ASEAN countries, reducing them from an average of 32 days in 2017 to just 18 days. Coupled with a 50% reduction in logistics costs. This efficiency is a compelling incentive for Chongqing-based brands to utilize the ILSTC for international shipments.