3RD ANNUAL CONFERENCE ON TRANSPORT, TRADE AND SERVICE STUDIES (ATTS)CITY UNIVERSITY OF HONG KONG

17-18 NOVEMBER 2014

Transport Infrastructure in South-Eastern Europe: Challenges and

Opportunities for China

Jelena Damnjanovic SimicNovi Sad School of business

Novi Sad, Serbia

Structure

Introduction China’s FDI flows China and Central and Southeast Europe Comparative summary of Ada and Pupin’s

bridge Serbia and China Conclusion

China’s FDI flows

Outward FDI stock has reached $613 billion in 2013.

China’s FDI flows to the EU‐27:2009 - € 3.19 billion 2011- €15.03 billion in terms of stock

Companies with Chinese shareholders employed 27,381 people in Europe in 2011.

In 2013 - 123,780 jobs.

China and Central and Southeastern Europe

The actual amount Chinese companies already invested in Central and Eastern Europe is to the tune of several billions of dollars, with further lines of credit stretching to $10 billion

The $10 billion credit line was just one of 12 proposals for further economic cooperation put forward at the China-Central and Eastern Europe leaders' summit, in Bucharest, Romania, on 25 November 2013.

Chinese state-owned giants China General Nuclear Power Group, China Huadian and Sinohydro

Private wind energy provider Ming Yang Wind Power Group and Huawei Technologies

Nuclear, telecommunications and high-speed rail sectors, wind power...

High-speed rail line linking Hungary and Serbia China has carefully targeted countries with a

strong need for investment and potentially growing market

China slowly overtakes the United States as the world's largest energy consumer and becomes one of the most important drivers in global energy demand

Ada bridge

Zemun-Borca (Pupin’s) bridge

Ada bridge Zemun-Borca bridge

Constructor

Consortium of three EU companies, Porr AG fromAustria, Slovenia ceste tehnika from Slovenia and DSDBrückenbau GmbH from Germany.  

China Road and Bridge Corporation (CRBC)

Investors

City of Belgrade, the European Bank for Reconstruction and Development, European Investment Bank and several private financiers

Export-Import Bank of China

Serbian government

Total lenght 964 m1507m

Width 45,04 m29,1m

Cost (mil.euros) 360

190

Period of construction 2008-2011 (2013)

2011-2014

In 2007 China had zero km of super high speed rail tracks

In 2014, the total length of super high speed rail tracks in China is more than in the entire world combined

Serbia and China

Construction of two sections of the Obrenovac-Ljig motorway , Shandong group

China targeted the energy sector, starting with a $300 million low-interest loan for the reconstruction of the Kostolac (Serbia) coal fired power station, with Chinese companies employed as sub-contractors.

Environmental Energy Holdings and the Shenzhen Energy Group are in negotiations on developing the Nikola Tesla coal power plant (Belgrade, Serbia), at an estimated cost of €1.5 billion.

 

Conclusion

Serbia is highly competitive fit for investors

The benefits for China are commercial, financial and political

Serbia has a strong positive experience with Chinese firms and cooperation with government of China.

Construction of the Pupin Bridge is a superb reference for the Chinese infrastructure construction companies

Famous Sun Tzu said 2000 years ago that the supreme art of war is to subdue

,,the enemy„without fighting. Chinese Prime Minister Li Keqiang

understood this message very well.