According to Martin, 2011 (cited in Logistics and Supply Chain Management: An

Overview, 2019), Logistics can be defined as ‘the process of strategically managing the

procurement, movement and storage of materials, parts and finished inventory (and the

related information flows) through the organization and its marketing channels” in a

profitably way referring to current and future actions and this through cost-effective

fulfilment of orders [54-55]. With this research, we aim to look for a more sustainable

and cost-effective way using logistics and supply chain.

COST

 Computation for Transportation Cost and Travel Time using the existing

route.

Computation for total cost of transportation using the existing route will be

explained as we go through here.

Road Transport Distance in Average per /KM Transport

Charges Kilometers Cost Cost
Domestics Transport
Charges 5150 $0.45 $2317

(Table1. Cost of Domestic Road Transportation; Existing Route [64])

Transport
Origin port Destination Port Country Region Cost
Port of Salalah Oman $1100
Middle
Jeddah Saudi Arabia $1200
East
Shanghai Shuwaikh Port Kuwait $1200
China Rotterdam Netherlands $1800
Hamburg Germany Europe $1880
Le Havre France $1800

(Table 2. Sea Transport Cost; Existing Route [64])

Total Transportation Cost =Road Cost + SeaCost

 Cost of Sea
Cost of Road
Destination Shanghai to
Origin port (Kashgar to Total Cost
Port Destination
Shanghai)
Ports)

Port of Salalah $ 2,317 $ 1,100 $ 3,417

Jeddah $ 2,317 $ 1,200 $ 3,517
Kashgar, Shuwaikh Port $ 2,317 $ 1,200 $ 3,517
China Rotterdam $ 2,317 $ 1,800 $ 4,117
Hamburg $ 2,317 $ 1,880 $ 4,197
Le Havre $ 2,317 $ 1,800 $ 4,117

(Table 3. Sea Total Cost of a 40-foot container from China to destination ports; Existing Route
[64] )

Table 1 describes that the total road transportation cost is $2317 for 40-foot container

from port of Shanghai (China) to Kashgar Port (China) and the table 2 shows the cost of

transportation via sea from selected countries in the Middle East and Europe. The cost

of sea freight is taken last June 2018 by MSC and CMA Lines, FREIGHTOS, Hapag

Llyod and China Shipping. And lastly the table 3 displays the total cost of transport for a

40-feet Container from Kashgar, China to different destination ports.

Average Speed of Total Travel Time

Distance (KM) truck (Days)
Road Travel
Time 5150 40 km/ hr 5.33

(Table 4. Computation for Total Road Travel Time; Existing Route [64] )

Hrs Delay per Total Delay in Travel

Number of Days Day Time (days)
Delay in Travel
Time 5.33 8 1.78
 (Table 5. Computation for Total Delay Travel Time; Existing Route [64] )

Existing Travel Delays in Travel

Time (days) (Days) Total Travel Time (days)
Total Travel
Time 5.33 1.7 7.03

(Table 6. Computation for Total Travel Time; Existing Route [64] )

Table 4 shows the computation of Total Road Travel Time from Kashgar to Shanghai

Seaport while table 5 displays total delay in travel time due to other factors like weather,

traffic jam, driver’s rest and other external factors. So table 6 computes for the Total

Travel Time using the formula below, and from that we got 7.03 days of total travel time.

Origin Destination Distance in

Country Speed Days in Area
port Port Nautical Miles
Port of
Salalah Oman 12 knots 22 Days 6027 Miles
Saudi
Jeddah Arabia 12 knots 26 Days 7341 Miles
Shanghai Shuwaikh
Port Port Kuwait 12 knots 25 Days 7094 Miles

Rotterdam Netherlands 12 knots 42 Days 11999 Miles

Hamburg Germany 12 knots 43 Days 12277 Miles
Le Havre France 12 knots 41 Days 11744 Miles

(Table 7. Travel time from Shanghai to selected ports; Existing Route [64] )

Road TravelTime Sea Travel Time

Origin Destinatio Total Travel
(Kashgar to Shanghai to
port n Port Time
Shanghai) Destination Ports)
Port of
Kashgar, Salalah 7 Days 22 Days 29 Days
China
Jeddah 7 Days 26 Days 33 Days
 Shuwaikh
Port 7 Days 25 Days 32 Days
Rotterdam 7 Days 42 Days 49 Days
Hamburg 7 Days 43 Days 50 Days
Le Havre 7 Days 41 Days 48 Days

(Table 8. Travel time from Kashgar to selected ports; Existing Route [64] )

In table 7 we can see the total nautical miles from Shanghai to selected destination

ports in Middle East and Europe while in table 8 is the total travel time for selected

countries from Middle East and Europe.

 Computation for Transportation Cost and Travel Time using the China-

Pakistan Economic Corridor (CPEC) Route

Road Transport Distance in Average per /KM

Charges Kilometers Cost Transport Cost
Domestics Transport
Charges 2800 $0.45 $1260

(Table 9. Cost of Domestic Road Transportation; CPEC Route [64])

Destination
Origin port Port Country Region Cost of Shipment
Port of
Salalah Oman $ 300.00
Jeddah Saudi Arabia Middle East $ 800.00
Shanghai Shuwaikh
China Port Kuwait $ 800.00
Rotterdam Netherlands $ 1,500.00
Hamburg Germany Europe $ 1,500.00
Le Havre France $ 1,500.00

(Table 10. Sea Transport Cost; CPEC Route [64])

 Total Transportation Cost =Road Cost + SeaCost

Cost of Sea
Cost of Road
Destination Shanghai to
Origin port (Kashgar to Total Cost
Port Destination
Shanghai)
Ports)
Port of
Salalah $ 1,260 $ 300.00 $ 1,560
Jeddah $ 1,260 $ 800.00 $ 2,060
Kashgar, Shuwaikh
China Port $ 1,260 $ 800.00 $ 2,060
Rotterdam $ 1,260 $ 1,500.00 $ 2,760
Hamburg $ 1,260 $ 1,500.00 $ 2,760
Le Havre $ 1,260 $ 1,500.00 $ 2,760

(Table 11. Sea Total Cost of a 40-foot container from China to destination ports; CPEC Route
[64] )

The total road transportation cost for 40-foot container from port of Kashgar (China) to

Gwadar Port (Pakistan) is $1260 as we can see from table 9 and its show in table 10

the cost of transportation via sea from Gwadar to selected countries in the Middle East

and Europe. And lastly the table 11 presents the total cost of transport for a 40-feet

Container from Kashgar to different destination ports. The cost of sea freight is taken

last June 2018 by MSC and CMA Lines, FREIGHTOS, Hapag Llyod and China

Shipping [64].

Average Speed of Total Travel Time

Distance (KM) truck (Days)
Road Travel Time 2800 40 km/ hr 2.91

(Table 12. Computation for Total Road Travel Time; CPEC Route [64] )
 Total Delay in
Number of Days Hrs Delay per Day Travel Time (days)
Delay in Travel
Time 2.91 10 1.21

(Table 13. Computation for Total Delay Travel Time; CPEC Route [64] )

Existing Travel Delays in Travel Total Travel Time

Time (days) (Days) (days)
Total Travel Time 2.91 1.21 4.12

(Table 14. Computation for Total Travel Time; CPEC Route [64] )

It shows in table 12 the computation of Total Road Travel Time from Kashgar to Gwadar

port while in table 13 we can see the total delay in travel time due to other factors like

weather, traffic jam, driver’s rest and other external factors. And in table 14, it computes

for the Total Travel Time. Using the formula below, we got 4.12 days of total travel time.

Distance in
Destinatio
Origin port Country Speed Days in Area Nautical
n Port
Miles
Port of
Salalah Oman 12 knots 3 Days 755 Miles
Jeddah Saudi Arabia 12 knots 8 Days 2127 Miles
Gwadar Shuwaikh
Seaport, Port Kuwait 12 knots 4 Days 942 Miles
Pakistan
Rotterdam Netherlands 12 knots 24 Days 6785 Miles
Hamburg Germany 12 knots 25 Days 7063 Miles
Le Havre France 12 knots 23 Days 6530 Miles

(Table 15. Travel time from Gwadar to selected ports; CPEC Route [64] )

Road
Sea Travel Time
Origin Destination TravelTime Total Travel
Shanghai to
port Port (Kashgar to Time
Destination Ports)
Shanghai)
Kashgar, Port of 4 Days 3 Days 7 Days
China Salalah
 Jeddah 4 Days 8 Days 12 Days
Shuwaikh
Port 4 Days 4 Days 8 Days
Rotterdam 4 Days 24 Days 28 Days
Hamburg 4 Days 25 Days 29 Days
Le Havre 4 Days 23 Days 27 Days

(Table 16. Travel time from Kashgar to selected ports; CPEC Route [64] )

In table 15 it shows the total nautical miles from Shanghai to selected destination ports

in Middle East and Europe while in table 16 is the total travel time from Kashgar to

selected countries from Middle East and Europe using the new CPEC Route.

Existing
Origin Destinatio route CPEC Route
Difference Percentage
port n Port transport transport cost
cost
Port of
Salalah $ 3,417.00 $ 1,560 $ 1,857 54.35%
Jeddah $ 3,517.00 $ 2,060 $ 1,457 41.43%
Kashgar, Shuwaikh
China Port $ 3,517.00 $ 2,060 $ 1,457 41.43%
Rotterdam $ 4,117.00 $ 2,760 $ 1,357 32.96%
Hamburg $ 4,117.00 $ 2,760 $ 1,357 32.96%
Le Havre $ 4,117.00 $ 2,760 $ 1,357 32.96%

(Table 17. Comparison of Transport Cost between existing route and new CPEC Route [64] )
To summarize the table 17, you can see a big difference in terms of costs when

travelling goods using the existing route versus the new CPEC route. And from that you

can say that it is more cost-efficient to use the new route.

Existing route CPEC Route

Origin Destination Difference
travel time travel time Percentage
port Port (Days)
(Days) (Days)
Kashgar, Port of 27 7 20 74.07%
 Salalah
Jeddah 33 12 21 63.64%
Shuwaikh
China Port 32 8 24 75.00%
Rotterdam 49 28 21 42.86%
Hamburg 50 29 21 42.00%
Le Havre 48 27 21 43.75%

(Table 18. Comparison of Travel Time between existing route and new CPEC Route [64] )

Using the existing route versus the new CPEC route, it shows in table 18 that there is a

big difference in terms of the travel time in transporting goods. And from that you can

say that it is easier and faster to use the new route than the old one.

To sum it up with all the gathered data above, it is more cost-efficient, easier and

faster to transports goods from Gwadar to Kashgar or vice versa using the China-

Pakistan Economic Corridor Route rather than the existing route. The time travel is

around 60%-70% shorter than the usual and in terms of cost, it is around 40%-55% less

to use the new route than the old one.

REVENUE
 Changes in revenue of a company whether it’ll descend or ascend is directly

proportional to the changes in the company’s sales. The changes in revenue over time

illustrates trends in business.

(Table 18. Main Import partners of Saudi Arabia, 2019 [65] )

(Table 19. Main Export partners of Saudi Arabia, 2019 [65] )

Both from the table 18 and table 19, we can see that China is the leading partner of

Saudi Arabia in exporting which got 18% out of all countries while in importing they are

20% out of all the countries. We can assume that the partnership of BRI and 2030

Vision is really a good decision for both of the countries.

(Table 20. Export Revenue of Saudi Arabia, 2019, 2020-2022 is forecasted [65] )

Table 20 represents the export revenue (in billion US Dollars) of Saudi Arabia starting

from 2012 up to 2020 while 2021-2022 are forecasted. We can see that starting from

2016 – 2018, the revenue increases and one of the reasons here is that the alignment

of China’s BRI and Saudi Arabia’s 2030 Vision has officially started. The partnership
has a big impact in Saudi Arabia economically as what the table shows. But in the end

of 2019 until 2020, the world wide spread of Corona Virus or Covid-19 has greatly affect

the economy of all the countries and Saudi is one of them. But since vaccines are

already available and cases are gradually decreasing, the forecasted revenue is

attainable for the country.

PEFORMANCE

In evaluating country’s performance, economist uses GDP or Gross Domestic

Product of a country to measure how productive they are.

%
CHINA 2009 2019
Growth
Gross Domestic Product $7.9 T $14.3 T 181%
Gross Domestic Product Per $10,26
Capita $6108 2 168%

(Table 21. Changes in GDP and GDP per capita of China, 2019 [66] )

%
SAUDI ARABIA 2009 2019
Growth
Gross Domestic Product $672 B $793 B 85%
$10,08
Gross Domestic Product Per Capita 9 $23,140 43.60%

(Table 22.. Changes in GDP and GDP per capita of Saudi Arabia, 2019 [66] )

Table 21 shows the changes in GDP and GDP per capita of China while in table

22 we can see the changes in GDP and GDP per capita of Saudi Arabia. With this data,

it is safe to assume that from 2009 up to 2019 there is a large increase for both GDP
and GDP per capita of the two nation. Which also indicates that they are in solid shape

and is moving forward.

(Table 23. Leading Countries with emerging logistics markets, 2021 [65] )

As what table 23 shows, Saudi is in top 5 among the 45 countries who are in the

list of leading emerging logistics market. To these countries, economist saw a lot of
potential from them in the logistics industry to help their country grow be economically

stable as what does the developed country is.

As per Agility Emerging Markets Logistics Index of 2016 [67], before a country must be

added up to the list of emerging logistics market, they should be making an effort to

improve their economy and aiming to reaching the same level as what those developed

country already has. They are using three metrics to assess countries which are listed

as follows:

- Market size and growth attractiveness (50%)

- Market Compatibility (25%)

- Market Conectedness (25%)