Chongqing - In early March, a train from Chongqing's Tuanjie Village set off southward loaded with fertilizers, chemicals, motorcycle parts, and new energy vehicles. This convoy, bound for Guangxi's Qinzhou Port, will later ship its cargo worldwide.

Chongqing-Guangxi-Singapore: collaborative trade route

Acknowledging the limitations of solely relying on the eastern seaboard for maritime trade, Chongqing proposed a southern gateway, capitalizing on sea transport's advantages for quicker access to Southeast Asia. Guangxi and Singapore resonated with this proposal, resulting in a collaborative route from Chongqing Railway Port to Guangxi Qinzhou Port, continuing to Singapore, setting the stage for the ILSTC.

Chongqing has been instrumental in developing the ILSTC, initiating the project during a trilateral meeting on March 18, 2016, at the Chongqing International Logistics Hub. Representatives from Chongqing International Logistics Hub, Guangxi Beibu Gulf Port Group, and PSA Singapore gathered to devise a new maritime route.

Following the inaugural meeting of the China-Singapore Connectivity Initiative (CCI) Coordinating Council in Beijing, the route's potential was highlighted, resulting in its formal recognition as the Southern Gateway under the CCI. Chongqing quickly leveraged this momentum, enhancing collaboration with Guangxi. Test runs began in April 2017, leading to the regular operation of the Southern Gateway route by September of the same year.

In November 2018, China and Singapore signed a memorandum of understanding on the construction of the "The New International Land-Sea Trade Corridor of China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity," renaming the Southern Gateway as the ILSTC.

In August 2019, the state council approved the "Overall Plan for the ILSTC," elevating this route to a national strategic level, providing a vital conduit for the western region to accelerate its integration with the global economy.

ILSTC transport soars with 21% increase in 2023

As the operational hub of the ILSTC, Chongqing plays a crucial role in its development. Chongqing has led efforts to promote inter-provincial cooperation, establishing a "13+2" collaborative mechanism among provinces and regions along the route.

Collaborative efforts have yielded significant progress in the operation of the ILSTC. Chongqing's innovative approach has driven the corridor's evolution, with initiatives in multi-modal transportation, digitalizing logistics, and integrating financial services.

For example, Chongqing initiated the country's sole cross-border financial services platform, ILSTC Financing, and Settlement Application, aiding enterprises with over $2.7 billion in financing and payments. It also introduced the "one container to the end" mode, enabling direct sea transportation use of railway containers and cutting time and costs. Moreover, the recent launch of the first digital bill of lading and asset-based financing for ILSTC goods highlights Chongqing's dedication to cultivating a dynamic trade ecosystem.

Yang Lin, Director of Chongqing Port and Logistics Office, introduced that over the past six years, Chongqing has been exploring the innovating in various aspects such as logistics organization, customs facilitation, financial empowerment, economic and trade development, and optimization of industrial layout in the corridor.

Statistics show thatat in2023, Chongqing transported 180,000 TEUs via ILSTC's three main modes: rail-sea intermodal, international railway, and cross-border road, marking a 21% year-on-year increase. Cargo value reached 28 billion yuan (about $3.88 billion), up 16% year-on-year.

As of 2023, the ILSTC has expanded its reach to 490 ports in 120 countries and regions, with a growing number of countries, regions, and enterprises actively joining the initiative.