Now that a reduction of Chinese subsidies for Eurasian rail freight have been more or less announced, the arguments for a standstill, slow down or on the contrary, continued growth on the New Silk Road has been made. While some fear that it will all fall apart from here, others are more optimistic than ever before. Is the New Silk Road a bubble? Or is it here to stay?
Although the subsidies provided by the Chinese government have boosted the volumes significantly, it has also caused an unrealistic market. Local governments could offer incentives of up till 5000 USD per container, depending on the region. The decision to ship cargo per train could be made based on price alone.