China has launched a logistics initiative designed to bolster trade between China and Africa. By consolidating key companies like Shanghai Greenroad W
China has launched a logistics initiative designed to bolster trade between China and Africa. By consolidating key companies like Shanghai Greenroad Warehousing and Logistics Group Co Ltd and Zhejiang Holley Global Industry Development Ltd, this new entity aims to streamline global supply chains, create a more integrated logistics platform, and enhance connectivity for African countries.
Dubbed Global Silk Road (Chongqing) Hub Port International Supply Chain Ltd, the hub will serve as the central shipping and logistics link between China and Africa, leveraging China’s advanced infrastructure and trade networks.
Countries in the East African Community (EAC) and beyond will gain access to enhanced supply chain networks, improving their trade competitiveness. The Northern Corridor, which spans Kenya, Uganda, Rwanda, Burundi, and parts of the Democratic Republic of Congo (DRC), will play a critical role in channeling imports and exports through the Port of Mombasa.
Trade hub
Kenya is set to benefit significantly, especially with the potential expansion of its Standard Gauge Railway into the DRC, which could position the country as a dominant logistics hub in East Africa. As a key trade hub in East Africa, Kenya’s infrastructure, particularly the Northern Corridor, will receive a boost, attracting investments and potentially increasing trade volumes. The Port of Dar es Salaam in Tanzania will complement Mombasa’s role, facilitating trade along the Central Corridor.
The project aligns with China’s broader Belt and Road Initiative (BRI) and the New International Land-Sea Trade Corridor, focusing on improving connectivity across 13 Chinese provinces and two regions. African countries such as Togo, South Sudan, Sierra Leone, and Madagascar are also expected to see logistics improvements under this initiative.
Discussions during the launch event, organized by the China-Africa Business Council, highlighted the need for efficient supply chains to foster economic prosperity and strengthen trade partnerships. The initiative also supports President Xi Jinping’s connectivity partnership goals from the FOCAC Beijing Summit.