CHINA is pushing ahead with its dual network of maritime and road links that will, if they materialise, effectively connect East Asia with Europe. As reported by Bloomberg, China intends to create a "$16.3 billion fund to finance construction of infrastructure linking its markets to three continents as President Xi Jinping pushes forward with his plans to revive the centuries-old Silk Road trading route." Such plans have already found favour in many countries including Russia, Tajikistan, Indonesia and Sri Lanka. The list of "hubs" along the route includes port facilities in Bangladesh.

That China's financial institutions, which include the recently constituted Asian Infrastructure Investment Bank (AIIB), are willing to back major infrastructure projects is already materialising. For instance, Sri Lanka has been promised US$1.4 billion to develop port infrastructure capabilities. In the central Asian region, deals have been

struck to develop both infrastructure and energy deals to the tune of $50 billion, and Afghanistan is the recipient of more than $300 million in economic aid, some of which will lead to construction of essential infrastructure like highways, power generation and roads.

The thought process behind such ambitious projects is not difficult to understand. With its huge economic might, China is willing to bankroll multi-billion dollar infrastructure all along the routes that will facilitate trade over land and water. It will certainly involve Chinese companies that have garnered considerable expertise in building mega projects, not just in China but all over Africa and more recently Latin America. One must not forget that China envisages itself to be a "great power" in the coming decades and extend its political and economic influence over the entire region. What better way to reach that goal than extend credit facilities to cash-starved countries that lack the economic resources to get their infrastructure upgraded? The new "look outward" policy marks a shift in Chinese policy, which had hitherto been focused on attracting foreign direct investment to the country. According to Zhang Yunling, Director of the Institute of Asia Pacific Studies at the Chinese Academy of Social Sciences, the plan is "a shift in China’s strategic thought" that foresees the outflow of Chinese "development" to countries in its vicinity.

It is little wonder that countries such as Tajikistan, the

Maldives, Sri Lanka, Afghanistan, and even India have expressed interest in the plan. As described by Xinhua News Agency, the land road will stretch from the ancient capital city of Xi'an, travelling through Lanzhou and Urumqi going onwards across Central Asia, the Middle East to Europe. "The sea-based Maritime Silk Road goes through Guangdong and the southernmost Chinese province of Hainan, an island, en route to the Malacca Strait and the Indian Ocean. It traverses the Horn of Africa before entering the Red Sea and Mediterranean. The two roads are supposed to meet in Venice." That China means business is reflected in its inking of deals all across Central Asia over the last one year. 22 infrastructure deals worth $30 billion in Kazakhstan, 31 deals in Uzbekistan worth $ 15.5 billion and some 36 co-operation agreements worth $1.5 billion, and a plethora of agreements in Turkmenistan and Kyrgyzstan for new pipelines. We are looking at roads, pipelines and high-speed rail along what is set to become a reincarnation of a 4,000 mile long ancient trading route that was the Silk Road.

The opening up of markets along such a wide spectrum that could eventually involve 50 nations with a combined population of about 3.8 billion brings with it the promise of a multi-trillion dollar business

potential. The fostering of transportation links in the region can only lead to tapping the massive business potential that exists and Chinese companies will certainly benefit from it. And it is not only trade in finished good that drives policymakers in Beijing towards the revamped silk roads. Many analysts believe it is in China's best interests to tap into and secure global energy supplies that are needed to feed its mammoth

economy.

For Bangladesh, being part of the new silk road certainly brings forth the opportunity of a deep

sea port. Such a facility would not only cater to the regional business opportunities that will evolve with maritime road but facilitate greater import and export potential for the country. The need for a deep sea port has been highlighted for some years now. Although Chittagong port handles about 80% of the country's imports and exports, the narrow approach of Karnaphuli River means that large container ships more than 617 ft. in length cannot pass through. It also suffers from draft problem (allowable maximum draft, i.e. depth of 8.87m) which hinders ocean-going vessels to anchor at port (currently mother vessels anchor at outer anchorage a few kilometres away from the jetty and small lighter ships tranship bulk cargo). Again, smaller container ships shuttle between Singapore to Chittagong. This single problem compels the country to rely on smaller ships to carry cargo to the port, pushing up cost and time for major import and export trading. With global consultancy firm McKinsey & Company's study, “Bangladesh's ready-made garments landscape: The challenge of growth," which predicted that Bangladesh can double its garments exports in the next decade, the arguments for a deep-sea port become more compelling. It is only in its best interests that Bangladesh should join the Silk Road initiative that could potentially pave the way for much-needed investments in crucial infrastructure.

The writer is Assistant Editor, The Daily Star.