China and Southeast Asia cargo growth situation

China and Southeast Asia cargo growth situation
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The Chinese cargos in Southeast Asia

The infrastructure of Southeast Asian countries requires great improvements because of the growth of the welfare of the population. China is not a part of Southeast Asia but it also works for the development of the region. Lots of goods are imported and exported to and from there. Let’s consider what countries are part of Southeast Asia:

  • Malaysia (is one of the most advanced in Southeast Asia)
  • Cambodia
  • Vietnam
  • The Philippines
  • Singapore
  • Indonesia
  • Laos, etc.

The majority of them are still developing compared to the US, Europe, and even China. The development of infrastructure in the enumerated countries demands over $7 trillion to invest.

ASEAN and other multi-national agreements

The ASEAN agreement is a good opportunity for the free flow of goods between Southeast Asian countries. There are only certain difficulties concerning the states with the borders, such as Vietnam. The key market niche is cars and car elements. Thus, the free trade appears to be very productive, especially for Malaysia and Indonesia. The latest prefers purchasing ready-made cars and just add certain elements to them. In 2010, the agreement between China and ASEAN was signed (ACTA). After signing ACTA, the annual growth reached 20%. The positive influence is seen in both China and Southeast Asia. It is supported by the investments and agreements with Chinese companies. Such tendency also adds to the development of One Belt One Road Initiative in the region.

Breakbulk issue

The growth concerns not just a ro-ro business but also the breakbulk sector. The following materials are imported to Southeast Asia from the US, China, and Canada:

  • large equipment and its parts (which is capital or other heavy-weight equipment)
  • raw materials.

As a result, it is necessary to develop the breakbulk industry. Special vessels, container ships, and other handing facilities for the heavy loads are demanded.

Consider several important ports located in the region:

  • Sabah Ports
  • Kijing Port
  • Jakarta Port.

All of them need the development of infrastructure. Thus, all the described countries require further investment to make their facilities satisfactory for the growing breakbulk demand. You can read more about the agreements described above and the general transportation situation in the region on the Internet.