31 Aug 2017

IE Singapore facilitates Singapore-Chongqing JV formations as core CCI transport and logistics projects, reducing freight times for Singapore companies accessing West China 

 

MR No.: 036/17

Singapore, Thursday, 31 August 2017

 

  1. With International Enterprise (IE) Singapore’s facilitation, the Sino-Singapore Chongqing Connectivity Solutions Co., Ltd. (SSCCS) joint venture company for the Chongqing Logistics Development Platform (CLDP) was officially inaugurated at the third Chongqing Connectivity Initiative (CCI) Joint Implementation Committee (JIC) meeting today. The SSCCS will establish connectivity routes to and from Chongqing, including the Southern Transport Corridor, to drive Singapore-China trade and services flows. Singapore companies stand to benefit as better sea-rail connections to West China via Chongqing reduce freight times for exports.

     

  2. The SSCCS comprises:
    1. Connectivity Solutions Pte Ltd, a Singapore consortium comprising Pacific International Lines (PIL), PSA International, YCH Holdings and Kerry Logistics (Singapore);
    2. Chongqing consortium of six Chongqing companies[1].

       

  3. Mr Chan Chun Sing, Minister from the Prime Minister’s Office, and Chongqing Mayor Zhang Guoqing unveiled the company plaque at the inauguration ceremony. The Singapore and Chongqing consortia also exchanged the signed joint venture agreements for establishing SSCCS.

     

  4. This is a key development following the “1+1” Collaboration Framework announced by IE Singapore[2] in February this year to facilitate implementation of the two CCI projects, the CLDP and the Multi-Modal Distribution and Connectivity (DC) Centre. The CLDP will develop multimodal logistics standards and practices for river, rail, air and road transport modes, and facilitate the development of logistics facilities and services such as supply chain solutions.

     

  5. In line with this, the SSCCS aims to participate in the development of cargo train services along the Southern Transport Corridor from Chongqing to Beibu Gulf. Via rail, freight time from the Chinese coastal area to Chongqing will be reduced to less than three days, from the current 10 days through the Yangtze River route (see Annex 1 for the distance comparison table). This benefits traders exporting from Southeast Asia for distribution in West China. Compared to air freight and sea-land connections, sea-rail connection[3] is the most effective for companies exporting to inland markets, especially for perishable products.

     

  6. Mr Teo Siong Seng, Managing Director of PIL and Chairman of the SSCCS, said, “This milestone marks the partnership between Chongqing and Singapore companies to initiate and organise new trade routes to connect Chongqing to global markets along the Belt and Road Initiative. I am hopeful that Chongqing can be the gateway to West China.”

     

  7. Said Mr Lee Ark Boon, Chief Executive Officer (CEO) of IE Singapore, “The formation of the joint venture company is a key milestone. It catalyses Chongqing’s role as China’s inland international logistics hub and multi-modal transport and logistics centre for Western China. More importantly, this enhances Singapore’s connectivity to new emerging trade nodes and brings new opportunities for Singapore enterprises, in particular for wholesale trade. It will also support innovation in trade-related financial services.”

     

  8. Under the “1+1” Collaboration Framework, IE Singapore and the Chongqing Municipal Government formalised a work group to coordinate plans, policies and stakeholder engagement. IE Singapore will partner relevant Chinese agencies to drive innovative measures to facilitate trade and logistics flows. This supplements the customs policy announced by China in May this year to build Chongqing into a logistics hub, create an open trade platform, optimise regulatory services, develop the business environment and support financial services.

     

    Joint Venture company for DC Centre inaugurated

  9. The joint venture company for the DC Centre – Sino-Singapore (Chongqing) DC Multimodal Logistics Co., Ltd – was also inaugurated at the JIC meeting today. Consisting of the same four Singapore companies in the SSCCS and three other Chongqing companies[4], it will implement the CLDP’s logistics solutions and serve as a physical facility for multimodal operations in Chongqing. It will plan, develop, manage and optimise multimodal operations while coordinating and integrating logistics resources across neighbouring logistics centres.

 

Annex 1: Distance and time comparison table between connections

Annex 2: Chinese terms

 

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Please use ‘IE Singapore’ or ‘IE’ if an acronym for ‘International Enterprise Singapore’ is required. In addition, unless otherwise stated, the use of statistics cited in our media releases, website or Statlink, should be attributed to IE Singapore. 

For media enquiries and/or event photos, please contact:

 

Ms Cheryl HOW                      
Manager (Media)
Corporate Communications Group

DID      : +65 6433 4655

Email    : cheryl_how@iesingapore.gov.sg

________________________________________________________________________

About International Enterprise Singapore

IE Singapore is the government agency that promotes international trade and partners Singapore companies to go global.

We attract and anchor global trading companies in Singapore by promoting our unique advantages as a global trading hub. Today, Singapore is home to a complete ecosystem for the energy, agri-commodities and metals & minerals trading clusters.

Through our network of over 35 overseas centres and comprehensive assistance programmes, we partner Singapore companies to strengthen their global competitiveness.  

Visit www.iesingapore.gov.sg for more information.

 

About Connectivity Solutions (CS) Pte Ltd

Connectivity Solutions Pte Ltd (CS) is a joint venture between Pacific International Lines (PIL), PSA International, YCH Holdings and Kerry Logistics (Singapore). To facilitate stronger trade flows across markets along the Belt and Road Initiative, CS provides supply chain solutions in intermodal transport & logistics and trade solutions. This will optimise time, cost and experience for global shippers. CS is also commercially involved in demonstrative transport & logistics projects under the Chongqing Connectivity Initiative, Singapore's third Government-to-Government project with China.

 

ANNEX 1 

Connections

Estimated route distance (km)

Estimated distance savings compared to Yangtze River river-sea connection (km)

 

Estimated time savings compared to Yangtze River river-sea connection (%)

[New route]

 

Southern Transport Corridor rail-sea connection

 

(Chongqing – Beibuwan - Singapore)

3900

2500

39%

[Current route]

 

Yangtze River river-sea connection

 

(Chongqing – Shanghai - Singapore)

 

6400

-

-

 

ANNEX 2

Chinese terms

English

Chinese

Sino-Singapore Chongqing Connectivity Solutions Co., Ltd.

中新互联互通(重庆)物流发展有限公司

Chongqing Logistics Development Platform

中新(重庆)互联互通物流发展平台

Connectivity Solutions Pte. Ltd.

联程发展有限公司

Pacific International Lines (PIL)

新加坡太平船务(私人)有限公司

PSA International

PSA国际港务集团

YCH Group

叶水福集团

Kerry Logistics

嘉里物流联网有限公司

Chongqing Liangjiang New Area Development and Investment Group

重庆两江新区开发投资集团有限公司

Chongqing Transportation Holdings Group

重庆交通运输控股(集团)有限公司

Chongqing Port Logistics Group

重庆港务物流集团有限公司

Chongqing Logistics City

重庆西部现代物流产业园区开发建设有限责任公司

Chongqing Airport Group

重庆机场集团有限公司

Minsheng Logistics and Shipping

民生轮船股份有限公司

Sino-Singapore (Chongqing) DC Multimodal Logistics Co., Ltd.

中新(重庆)多式联运物流发展有限公司

Multi-Modal Distribution and Connectivity Centre

中新(重庆)多式联运示范基地

 



[1] Chongqing Liangjiang New Area Development and Investment Group, Chongqing Transportation Holding Group, Chongqing Port Logistics Group, Chongqing Logistic City, Chongqing Airport Group and Minsheng Logistics and Shipping.

[2] IE Singapore is the government agency facilitating commercial projects from the CCI office.

[3] Sea-rail connection is more cost-efficient than air freight, and faster than sea-land connection.

[4] Chongqing Liangjiang New Area Development and Investment Group, Chongqing Transportation Holdings, Chongqing Port Logistics Group