A new opportunity for business in Galati Free Zone
The volume level of economic exchanges between China and the countries of Central Europe already exceeded $ 600 billion.
Romanian-Chinese trade value reached in 2014, $ 3.9 billion, a record level, up with 19% compared to 2013.
Earlier this year, Chinese President Xi Jinping estimate that the value of trade conducted on the new Silk Road – a trade route and one infrastructure investment where China plans to invest enormously in the next period – could exceed 2,500 billion in just a decade.
Silk Road is part of the One Belt, one Trade Route, imagined by Chinese leaders, through which they will develop extensive transport corridors between China, Africa and Europe.
Romania, Galati and especially Free Zone and Port could play an important role in the near future as a point of transit goods, if only part of the trading volume on this route would be diverted by this geographical area.
Including Port and Free Zone Galati as zones of transit and routes between Europe and ex-Soviet space (especially countries around the Caspian Sea and Middle and Far East countries) would lead to shorter operating times and lower costs than current operating mode by classical routes.
As reported in Viata Libera Gapati newspaper, in October this year will run a logistics and transport first test – to be an alternative to general route currently used by transiting Russia.
What will be the mode of operation?
The economic route to be directed through the port of Galati and possible through the Free Zone is between Germany and China, the most important economic actors of trade between Europe – Asia.
As a way of testing, an operation of transport of goods will be developed in two-way, from China to Germany and simultaneously in the opposite direction.
Thus a first batch of goods from China with final destination Germany, will pass through the port of Galati. As mode the operation will take place in the following steps:
- Georgian National Railways will take over Chinese goods – via Kazakhstan, then they will forward them into one of the ports of the Black Sea, Poti (Georgia) or Istanbul / Samsun (Turkey)
- From the Black Sea ports, the goods will arrive by sea in Galati
- From Galati, the goods will be transported by rail directly in Germany and distributed to final destinations.
Simultaneously – another transport of goods from Germany with final destination China, will go through the same steps but in reverse – keeping the pivot of sea rail transit at Galati.
If this project transport and logistics will prove to be profitable as regarding costs and transit times, there is a good chance for Galati inclusion in major international transport routes.
Also, the Free Zone will use the maximum advantages of railway infrastructure (railway large and normal) and free zone facilities.
It is a good time for potential investors interested to explore the possibility for concession of land in the Free Zone Galati and take advantage of business opportunities offered by local economic area to be included in the trade routes between East and West.
What do you think about this project? Let us know your opinion about this topic.
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