RP to benefit from $5.7-trillion China-Singapore highway project

NANNING, China – The Philippines is expected to benefit from the $5.7-trillion ongoing massive highway construction here that is expected to link Southern China to Singapore by land under auspices of Pan-Beibu Gulf Economic Cooperation (PBGC), to which the country is a partner.

 As conceptualized by Chinese and Southeast Asian countries member states’ key political, economic, trade and business planners six years ago, the massive cross-border highway infrastructure will be cutting through Vietnam, Laos, Cambodia, Myanmar, Thailand and finally Singapore with Malaysia and Indonesia also standing as primary beneficiaries of the project.

International and the region’s key financial institutions, including the Asian Development Bank (ADB) have pledged their full backing and commitment of bankrolling the multi-billion dollar highway infrastructure with each land-based PBGE-member state actively involved.

However, Klaus Gerhaeusser, director general of ADB’s East Asian Department, said while they are supporting the economic highway, they expect people to be displaced and that the project would have some environmental impact.

 “Tribal and indigenous people will be displaced and this must be given due considerations by all project’s implementors,” Gerhaeusser said.

The road network has already been jumpstarted by the Chinese government on its southern end with the governments of Vietnam, Laos, Myanmar, Cambodia, Thailand and Singapore also doing the same. Completion date is yet be announced.

But during their fifth annual conference here, PBGC delegates this early are upbeat that once completed the multi-billion highway infrastructure – programmed to cover thousands of kilometers – will further bolster and spur economic growth within the Nanning-Singapore corridor, now the third largest in the world.

While located off-marked, the Philippines being an island state, is expected to cash-in from the massive cross-border highway network through its seaports and airports, as this project is also seen to increase maritime, cargo handling and air traffic activities within the Nanning-Singapore economic corridor.

“Once completed (cross-border highway) will likewise increase ports services and operations in the entire region and will provide opportunities and potentials for all modes of transportation,” Gui Zhongfu, vice chair of China’s Federation of Logistics and Purchasing, said.

Looking forward, he said that PGBC members, this early must work together in meeting the demands of these transportation modes – land, sea and air – through the establishment of shipping and air routes and do away from competing with each other.

 “We should bring up first-class investment services. We should invest in large logistics and container terminal projects. We should provide those who want to do business in the region a relax environment,” Zhongu told delegates.