In Khorgos, located on the eastern border of Kazakhstan, China has acquired a dry port through investment. In this area, China’s shipping company, namely Cosco cargo, has now started carrying containers through trains. There is a possibility that this area will develop as a transport-hub in the future. This dry port will help China to reach European countries through one belt one road.

What is a dry-port?

A dry port is also called an inland port or a multimodal logistics center, which is connected to a port by rail or road. It acts as a transshipment point in the transportation of goods being exported / imported. This is called a dry port because it proposes to operate the same services, which are operated at a harbor by the sea. The only difference is that it is not located near the sea. Another purpose of making dry ports is to relieve the workload of the main sea port with which it is connected. A dry port provides administrative services for container yards, warehouses, railway siding, cargo handling equipment and export / import sanctioning.

Important Facts

1. After investing in many sea ports throughout the world, China has now for the first time invested in a dry port in a landlocked country like Kazakhstan.
2. The northern region of Khorgos has always been a problematic area between the forces of China and the Soviet Union since the Cold War.
3. The nearest seashore to Khorgos is approximately 2500 km. away.
4. This region of Kazakhstan is barren and uninhabited. This area is slowly developing with the construction of residential complexes etc. for the employees of several companies established here.

Impact

1. Normally it takes 40-50 days to ship goods from China to European countries. But by rail road this distance can be covered in half of the time.
2. China’s export is more than its import. Luggage-laden trains will travel from China to Europe in east to west direction. On the other hand, there will be very less amount of goods when the train will return to China from Europe. Thus the justification for the actual operating costs of these trains becomes questionable.
3. Russia may worry that by developing this railroad from Kazakhstan to Europe, China wants to completely oust Russia from its transport-business.
4. This investment will result in development of both the areas near the China-Kazakhstan border, which are uninhabited and undeveloped right now.
5. China hopes that through the establishment of this dry port, she will get a quick access to major markets of Europe along with Central Asia.
6. She is also hoping that she will get the return from this investment after 5-10 years.