Global logistics city concept: a cluster-led strategy under the belt and road initiative

This paper develops a cluster-led strategic policy framework to assess the strategic positioning of key global logistics cities in Asia, most of which are affected by the ‘Belt and Road (B&R) Initiative.’ One of the key challenges that the B&R Initiative is facing is underdeveloped logistics infrastructure in Asia, not to mention road congestion, dilapidated infrastructure, incessant supply chain disruptions, and capacity constraint, which imposes significant economic costs.

Global logistics cities are evaluated on logistics infrastructure capacity and service responsiveness. This involves selecting the key global logistics cities, identifying key indicators, standardising and indexing, mapping dimensions of global logistics cities, and developing the cluster-led strategic policy framework.

The results indicate the prevalence of a multi-tier system wherein Shanghai and Hong Kong have attained the maturity of a global logistics city, whilst Manila, Jakarta, and Bangalore are making slow but steady progress in that direction. In contrast, Dhaka, Phnom Penh, and Ho Chi Minh City are showing potential but require further enhancement through significant investment in infrastructure and service delivery improvement.

The cluster-led strategic policy framework formulates actions and strategies through which emergent logistics networks can be strategically aligned and functionally integrated with B&R-oriented global trading hubs and transport corridors..