TRANSIT POTENTIAL OF UKRAINE IN TRADE AND TRANSPORT INTERACTION WITH PRC

  • І. О. Lapkina Odessa National Maritime University
  • O. I. Lapkin Odessa National Maritime University
Keywords: “Belt and Road” initiative, transit potential, seaports, container transportation

Abstract

Introduction. Cargo transportation from the PRC to the European part of the continent is mainly carried out by sea. More than 90% of cargo in this direction is transported with the participation of the maritime transport. Significant attention is paid to the maritime component of freight traffic within China’s international initiative BRI – the Belt and Road Initiative. This is evidenced by the international joint projects “The Silk Road Economic Belt” and “The 21st Century Maritime Silk Road” proposed in 2013 by the President of the PRC Xi Jinping. Purpose. The attention is paid to the prospects for Ukraine’s participation in the Belt and Road Initiative in terms of trade and transport interaction between the two countries. Results. Based on M. Porter’s famous competition theory and Diamond Model, the competitive advantages of Ukraine, regarding its participation in the Belt and Way Initiative, as well as the factors of economic growth, were specified. The main factors include the geographical position of Ukraine, its natural resources, in particular, a favorable zone for agro-industrial production; climatic conditions, namely a long period of navigation along the rivers and almost year-round on the sea transport routes; a sufficient number of qualified personnel. Most of the country is located on the coast of the Black Sea and the Azov Sea; the length of its coastline is one of the longest in Europe. This contributed to the formation of a powerful port-industrial complex. In addition, the natural conditions and resources of Ukraine, in particular, flat terrain, temperate climate, the presence of fertile lands and minerals, contribute to intensive industrial and agricultural activities. The location of Ukraine at the crossroads of Euro-Asian transport routes allows it to act as a transit transport bridge between Europe and Asia. A short land route from China to the European Union runs through Ukraine. The advantages that shorten the delivery time are reflected in the pilot project of launching a new container train that will deliver goods from the PRC to Hungary, transiting through the territory of Ukraine. The approximate economic scale of projects involving economic development with the participation of China in dozens of countries is gigantic; it is up to $ 21 trillion. Ukraine is considered as a partner for entering the European markets, and the Chinese side emphasizes the willingness to make significant investments in projects that are evaluated as mutually beneficial. Major infrastructure projects are of particular interest, which can significantly affect the economic development of regions that gravitate to Chinese cargo flows. Conclusions. Considering the structure of Ukrainian exports to China in the context of mutual cooperation, Ukraine’s interest is not only to maintain the position of agricultural products, wood raw materials and low-processed wood, but also to expand access to one of the world’s largest component markets represented by Ukrainian finished food products, oil and fat, dairy products, industrial products with high added value. It is the stimulation of this component that can ensure the growth of domestic production, create new jobs and ensure revenues to the state budget and social funds.

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Published
2020-06-22
How to Cite
LapkinaІ., & Lapkin, O. (2020). TRANSIT POTENTIAL OF UKRAINE IN TRADE AND TRANSPORT INTERACTION WITH PRC. Transport Development, (2(5), 52-66. https://doi.org/10.33082/td.2019.2-5.02
Section
MANAGEMENT OF LOGISTIC SYSTEMS AND PROJECTS