SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 378.38+2.7%Nov 10 4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TobagoJack who wrote (133562)5/6/2017 9:20:00 PM
From: Elroy Jetson  Read Replies (1) of 217666
 
If there's particular goods which would benefit from being shipped on long, costly, circuitous and time consuming transport route, the silk road project has an economic purpose. If you can't, you'll understand why economists are laughing at the great silk road project.

This rail system if upgraded would be faster but tremendously more costly than ocean transport, and somewhat less expensive but far slower than air transport. There is a market for this, but it's small. Economists calculate the upgrade costs currently exceed to value to the potential market. This explains why China doesn't invest their own money in this project. It's a white elephant they'd like others to build for them.

A current comparison - << lonelyplanet.com >>

This atlas shows the actual existing rail lines. Trains do run the length of the systems, but departure dates are irregular as the route is only scheduled when they have a full load sold for the entire route.



As a way to exert Chinese influence over the nations the railroad / road / pipelines pass through, the project can serve a productive role - just so long as China doesn't actually come to depend upon that transport route. Putin could quickly explain how exasperating it is to have something like a gas pipeline passing through the territory of a reliable friends like Ukraine who becomes obstreperous. You need alternate routes or they have too much leverage over you.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext