Turkey's Pasifik Eurasia, China Railway unit sign rail transport deal
ISTANBUL: Pasifik Eurasia Lojistik said it has signed a railway transport agreement with a subsidiary of China Railway to launch cargo train services along a corridor from China passing through Turkey into Europe, bypassing Russia.
Ten train services will be operated initially, with the goal of reaching 1,000 services per year.
The partnership with the state-owned company overseeing railway logistics across China is expected to accelerate freight volumes along what is known as the Middle Corridor.
The Middle Corridor is a China-Europe cargo route promoted by the West as an alternative to shipments via Russia, and it includes Kazakhstan, Azerbaijan, Georgia and Turkey.
The agreement will ensure time and cost advantages when compared to the North Corridor via Russia, parent company Pasifik Holding Chairman Fatih Erdogan said.
'The cost of transporting through the Middle Corridor provides a 500-1000 dollar advantage per container compared to the Northern Corridor following the Ukraine-Russia war,' Erdogan said.
The agreement will also accelerate the current 25-35 days average duration from China to Europe, compared with 40-53 days through the other route.
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ISTANBUL: Pasifik Eurasia Lojistik said it has signed a railway transport agreement with a subsidiary of China Railway to launch cargo train services along a corridor from China passing through Turkey into Europe, bypassing Russia. Ten train services will be operated initially, with the goal of reaching 1,000 services per year. The partnership with the state-owned company overseeing railway logistics across China is expected to accelerate freight volumes along what is known as the Middle Corridor. The Middle Corridor is a China-Europe cargo route promoted by the West as an alternative to shipments via Russia, and it includes Kazakhstan, Azerbaijan, Georgia and Turkey. The agreement will ensure time and cost advantages when compared to the North Corridor via Russia, parent company Pasifik Holding Chairman Fatih Erdogan said. 'The cost of transporting through the Middle Corridor provides a 500-1000 dollar advantage per container compared to the Northern Corridor following the Ukraine-Russia war,' Erdogan said. The agreement will also accelerate the current 25-35 days average duration from China to Europe, compared with 40-53 days through the other route.
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The global landscape of goods trade is currently undergoing a significant transformation. The established flows of commerce are being reshaped by economic, political, and technological forces. Since 2000s, this change and global trade imbalances have become more prominent. Four key metrics now define this shifting landscape: trade intensity, geographic distance, import concentration, and a newly prominent factor 'geopolitical distance'. Together, these indicators reveal how deeply the global trade map is being redrawn and why developing countries like Pakistan must adapt urgently. The new coordinates of global trade Trade Intensity remained a key indicator of globalization but is no longer that effective. Although trade continues to grow in volume, its share relative to GDP has stagnated in many regions. Countries are focusing more on domestic value addition, digital services, and sustainability over absolute trade volumes. 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The US-China decoupling, Trump's tariffs, sanctions regimes, and realignment of global blocs are the evidence that trade is shaped by diplomacy not by demand. A realignment in process Global trade is in process of realigning. According to the World Bank, global trade observed at 61% of world GDP in 2008 but then declined to 52% by 2023, indicating a shift toward domestic resilience and services. Cross-border B2C e-commerce reached $2.5 trillion by 2025, growing at a CAGR of 27%, driven by e-platforms (Alibaba, Amazon). A survey by McKinsey found that 67% of global manufacturers are planning to relocate their supply chains closer to home (nearshoring). Likewise, the presence of RCEP agreement (with 30.5% share of global GDP) in Asia-Pacific countries, expansion of South-South trade, the rise of digital platforms, and the growth of services trade are all driving a new kind of globalization. E-commerce has blurred physical boundaries, and countries are increasingly forming regional blocs to mitigate global uncertainties. The global trade order is becoming more fragmented but also more diversified. During 2017 and 2023, US imports from China deteriorated (20 percent) while US imports from Vietnam and Mexico surged (30 percent), reflecting supply chain shifts. Amid this change, resilience and adaptability have become the bases of successful trade strategies. While developed economies focus on strategic autonomy, emerging economies must watch rising protectionism, changing consumer preferences, and digital transformation. Strategic directions for Pakistan in a shifting landscape For Pakistan, being a developing country, the stakes are high. As a trade-dependent economy with limited fiscal space and a narrow export base, adapting to global shifts is essential. 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A trade strategy informed by data and international benchmarks is needed. Build resilience and shock absorbing policy Pakistan must develop a trade framework that can withstand shocks (pandemics, wars, or climate events). This requires improved coordination between government ministries, the private sector, and research institutions to ensure rapid policy response and long-term resilience. Diversify exports Pakistan must move beyond low-value exports like raw textiles. Promising sectors include IT services & other services, agri-processed goods, and high-end textile products. Equally important is branding and then exploring new markets in Africa, Central Asia, and the Middle East, rather than relying solely on traditional partners like the US and EU. Logistical inefficiencies and regulatory hurdles cost Pakistan billions in trade. Urgent investments in port infrastructure, customs automation, regulatory reforms and implementation of URAAN initiative will be essential. Strengthen institutions and regional integration A strong institutional framework is important for managing trade policy. Pakistan should also deepen ties with regional blocs such as SCO, and the GCC, which offer significant trade and investment potential. Bilateral and multilateral engagement can open new avenues for development. Gripping the digital economy & maintaining sovereignty Pakistan must encourage and enable SMEs to use e-commerce platforms for global outreach while ensuring data protection and compliance with global digital trade standards. Digital infrastructure development should be prioritized under the national trade strategy and laws should be made to maintain country's sovereignty. In a nutshell, the global trade order is evolving and Pakistan stands at a crossroads. The country must embrace innovation, integration, and reform. With the right mix of strategy and execution, Pakistan has the potential to adapt to the new geometry of trade and connect with new coordinates of global trade. AnnualAnalytical_Report_on_External_Trade_Statistics_of_Pakistan_FY2023.pdf Copyright Business Recorder, 2025
