On February 20, 2020, State Councilor and Minister of Foreign Affairs Wang Yi met the press after attending the Fifth Lancang-Mekong Cooperation (LMC) Foreign Ministers' Meeting in Lao capital Vientiane and said that it will be part of the key cooperation plans in the next step to accelerate the building of the Lancang-Mekong Economic Development Belt, and form synergies between LMC and the New International Land-Sea Trade Corridor (ILSTC). Ways are enhancing trade connectivity first, strengthening infrastructure connectivity, facilitating trade and customs clearance, promoting cooperation in production capacity, cross-border economy and industrial parks, speeding up the construction of economic development belt and injecting new impetus into the LMC.

Chongqing is located in the inland of China, far away from the seaports. In recent years, relying on the ILSTC, an international northwest-southwest cross-border logistics passage, it has realized opening-up, driven and united other provinces, autonomous regions and municipalities in western China to achieve joint development, becoming a new driving force enabling the acceleration of western China’s development and opening-up and transnational cooperation!

At present, the logistics transportation between Chongqing and Lancang-Mekong riparian countries mainly relies on the ILSTC. It includes three modes of logistics: international rail-sea intermodal transportation, cross-border road transportation, international railway transportation. Through nearly four years’ development, it has risen to be the national strategic passage for extensive consultation, joint contribution, and shared benefits within western regions. This rail-road-water-air multimodal transportation effectively connects the Belt and Road and the Yangtze River Economic Zone.

The international rail-sea intermodal transportation connects Chongqing with Beibu Gulf Port in Guangxi by railway, then extends to the main ports in Indo-China Peninsula and international shipping network by sea, shortening the time of shipping from western China to ASEAN (Association of Southeast Asian Nations) by about two thirds with comprehensive advantages of swift delivery, large freight volume and low cost. Since September 2017, the trains running in this mode has exceeded 1,700 shifts, covering 92 countries and regions and 220 ports. Currently, the innovative cold-chain rail-sea intermodal transportation is being explored. High-quality seafood and fruits in Lancang-Mekong regions such as basa fish and durian, which are favored by Chongqing people, can be transported to Chongqing in this mode.

The cross-border road transportation route starts from Chongqing, connects five riparian countries (Myanmar, Laos, Thailand, Cambodia and Vietnam) through the border ports in Guangxi and Yunnan, and extends to Singapore. This mode of transportation enjoys the advantages of swift delivery and convenient door-to-door service. Since April 2016, the lorries running in this mode has exceeded 2,800 shifts. Currently, the electronic and light industrial products, etc. produced in Vietnam and Thailand have been transported to Chongqing and western China through cross-border road transportation, with some of them exported to central Asian and European markets by China-Europe freight trains.

The international railway transportation route starts from Chongqing, joins the Pan-Asia Railway via Pingxiang, Guangxi and reaches five riparian countries, forming an international railway network that connects the Indo-China Peninsula. Currently, the main route is from Chongqing to Hanoi, Vietnam and over 130 train shifts have run along this route. With the completion of the China-Laos Railway and the construction of the China-Thailand Railway, etc., international railway transportation will usher in a new major development opportunity.

Rail-Road-Water-Air Multimodal Transportation

The data from the Port Logistics Office of Chongqing Municipal Government show that as of March 22, ILSTC international rail-sea intermodal trains (Chongqing - Beibu Gulf, Guangxi) have run 144 shifts in 2020 and the total amount has reached 1,724 shifts, the accumulated values of foreign trade goods and domestic trade goods are about USD 940 million and RMB 4.46 billion; the destinations include 222 ports in 92 countries and regions on 6 continents around the globe, transported goods cover more than 300 categories such as automobile and parts, building ceramics, chemical raw materials and products, light industry and pharmaceutical products (drinks), fresh and frozen products.

In addition to the rail-sea intermodal trains, now ILSTC also forms the other two logistics modes: cross-border road regular lorries and international railway intermodal trains, effectively connecting the "Belt and Road" and the Yangtze River Economic Belt.

Multi-party Cooperation and Co-construction

To expand the “circle of friends” and build the ILSTC into a vital platform for China's western regions to participate in the construction of the "Belt and Road". Chongqing government drafted the Framework Agreement on the ILSTC cooperation mechanism, and Chongqing, Guizhou, Guangxi, and Gansu became the first batch of western provinces, autonomous regions, and municipalities to sign the agreement, marking the initial formation of the ILSTC cooperation mechanism of extensive consultation, joint contribution, and shared benefits. Then more and more western provinces, autonomous regions and municipalities, including Yunnan, Ningxia, Shaanxi, and Sichuan, joined the joint construction mechanism. In October 2019, 12 provinces, autonomous regions and municipalities in western China, Hainan Province and Zhanjiang City of Guangdong Province signed a framework agreement in Chongqing to jointly build ILSTC.

Meanwhile, neighboring countries also showed great interest in it.

On the eve of National Day in 2019, the Chinese embassy in Vietnam and the Strategic Research Institute of Vietnam's Ministry of Planning and Investment jointly held a seminar on "New International Land-Sea Trade Corridor - Potential and Opportunities for China -Vietnam Cooperation". Vietnam announced that it would actively participate in the construction of the ILSTC, and it was accelerating the construction of highways in the country and planning railway construction. Vietnam also suggested that the function of Lao Cai Port (Hekou Port in China) be further performed and improved to export more agricultural products to inland China, and that products be exported to the European Union through ILSTC and China-Europe freight trains.