China and Pakistan in Talks Over Road and Rail Link Project

Agreement on a road and rail transport plan between the governments of China and Pakistan will allow for Middle East oil to be unloaded in Gwadar, in Pakistan, before travelling by rail overland to China.

The project could bring wide economic benefits and foster greater commercial ties between the 2 countries. No firm timetable for development has yet been announced for what will be an “epic logistical endeavour.”

Undertakings on this scale will not be taken lightly, but have the potential to change the way the world works.

The opening of the Suez Canal and Panama Canal significantly changed global shipping and reduced transport times. A network linking Pakistan and China would be likely to result in several thousand kilometre reduction to the distance travelled by oil destined for parts of China.

This project could create jobs and deliver an upturn in trade between GCC nations and Asia. The Kashgar to Gwadar road and rail link could significantly change the region, and impact world trade.

The agreement signed by the governments of China and Pakistan in early July, will be a long-term plan, but offers huge potential gains.