Connecting Chongqing and Southeast Asia: Progress, Potential and Challenges ; ISEAS Perspective ; Issue: 2020 No. 99

Abstract

As the key venture under the Sino-Singapore (Chongqing) Strategic Connectivity Demonstration Project, the third government-to-government (G-to-G) cooperation project between China and Singapore, the International Land-Sea Trade Corridor (ILSTC, previously known as the Southern Transport Corridor), has raised high expectations since it was officially launched in September 2017.1 The corridor seeks to reduce transaction costs for businesses by providing them with connectivity options, including highway, river, railway, and air links, to promote cooperation in the priority sectors of financial services, aviation, logistics and transport, and ICT. The ILSTC has made some progress over the last two years, with the two countries expanding the breadth and depth of their cooperation, including connecting more transportation lines and increasing the scale of freight transport. Official statistics show that as of 30 June 2020, the ILSTC has been extended to 234 ports in 92 countries and regions around the world, including Singapore.2 With a steady increase in the participation, the construction of the ILSTC appears to have gotten off to a good start, although there remain a number of key challenges.