China's overland Silk Road and Maritime Silk Road Thread

antiterror13

Brigadier
They could have been provided or requested by the Pakistani side.

I dont believe Pakistani have a final say :) ... they can request it .. but the final say would have come from China who have the $$, expertise and political power.

But they look quite old, perhaps to reduce cost by buying old Hitachis
 

broadsword

Brigadier
They were probably sourced from the current inventory and so there is no need to purchase again just for the project.

Also, does Sany have a strong presence in Pakistan to support their after-sales, which is very important for machinery?
 

plawolf

Lieutenant General
I am not quiet clear for that either. CPEC construction need lots of trucks, but that is now, not some years later when the proposed plant begin to produce, it would be too late. Pakistan itself is not a big country in terms of geography. So the domestic market for trucks after the major infrastructure work of CPEC is done is not very big.

One thing special about MAN's mother company VW is that, it moves extremely fast, early and long term looking. It is the first western company to set up joint venture in China. It's car VW and Audi have been dominant in China ever since, and are still highly regarded after Mercedes, BMW, Buick, Ford etc. moved in. It is just natural for VW to take on a good position early on for the next couple of decades to come.

The only possible reason is lower production cost which also attracts other car manufactures like Chinese in a separate post. That is to say, MAN and other vehicle investors are aiming to use Pakistan as a manufacturing base for further export.

The one thing special there is that, CPEC has dedicated industrial zones probably modeled after numerous such zones in China where investors are exempted from taxes. This makes CPEC and Pakistan standing out of the region. For comparison, India has heavy domestic protections, Central Asians run business more like the Soviet/Russian, while CPEC is run closer to the state-capitalist in China.

I believe Pakistan consciously pursuit Gwadar (port and industrial parks) to be another Shenzhen.

MAN isn't making the truck factory to supply the CPEC construction. The trucks that plant will make are not intended to help build the roads, but rather to drive goods on them after the roads have been built.

Road freight, as with most freight, enjoys significantly economies of scale. Per unit of cargo, the bigger the transport truck, the cheaper it is to transport it. However, heavy truck demand is very dependent on the quantity and quality of a nation's roads - having huge trucks doesn't do you much good if the roads and bridges can't support their weight.

As China adds vast mileages of top grade high ways, that will make heavy truck transport possible in significantly more places than before, so transport companies are going to want to trade up their existing medium and off road trucks for heavy duty highway runners.

This is a classic case study of the positive externalities from infrastructure projects. It creates new opportunities and markets by just being there.
 

taxiya

Brigadier
Registered Member
MAN isn't making the truck factory to supply the CPEC construction. The trucks that plant will make are not intended to help build the roads, but rather to drive goods on them after the roads have been built.

Road freight, as with most freight, enjoys significantly economies of scale. Per unit of cargo, the bigger the transport truck, the cheaper it is to transport it. However, heavy truck demand is very dependent on the quantity and quality of a nation's roads - having huge trucks doesn't do you much good if the roads and bridges can't support their weight.

As China adds vast mileages of top grade high ways, that will make heavy truck transport possible in significantly more places than before, so transport companies are going to want to trade up their existing medium and off road trucks for heavy duty highway runners.

This is a classic case study of the positive externalities from infrastructure projects. It creates new opportunities and markets by just being there.

That was what I said.

For the domestic usage of big trucks afterwards, I am not sure about the domestic market volume of Pakistan to warrant MAN setting plant there, therefor I suspect export as a possibility.
 

KIENCHIN

Junior Member
Registered Member
That must be for the old highway. I am sure the safety record for the new route is better.
My gosh! Just look at that terrain!

Wiki - "About 810 Pakistanis and 200 Chinese lost their lives constructing the Karakoram Highway".

Salute to the the kind of great initiatives that humanity is capable of.
Yes that was the lives lost building the original Karakorum Highway and sealed the friendship between the nation of Pakistan and PR China forever.
 
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