The global economy is undergoing a slow and uneven recovery in the aftermath of the pandemic. However, the resurgence of regional geopolitical conflicts, rising trade protectionism and volatile monetary policies across major economies have added further complexity and unpredictability to global supply chains and cross-border trade.
Amid these disruptions, transportation and logistics have taken centre stage, serving not only as a critical enabler of economic resilience but also as a strategic domain shaping the future of global integration. Modern transportation systems are no longer just about mobility; they represent the interconnection of economies, industries and societies and must balance priorities such as safety, sustainability, efficiency, inclusiveness and adaptability.
In the face of global divergence, emerging Asian economies have become the primary drivers of global growth and trade momentum. These markets are accelerating investment in modern, low-carbon transport infrastructure to enhance both regional connectivity and internal logistics efficiency.
Key developments across Asia include:
- Electrification of railway systems to support carbon neutrality and operational cost reduction;
- Integration of green engineering standards in large-scale highway and intermodal projects;
- Smart logistics networks driven by AI, IoT and digital twin technologies;
- Resilience-oriented planning, with flexible supply chain corridors designed to withstand macroeconomic or geopolitical shocks.
Despite these advances, many economies still face challenges in financing, standard harmonisation and technology scaling. This creates both risks and opportunities for public and private sector stakeholders.
China has positioned transportation at the core of its sustainable development strategy. The country has made significant progress in decarbonising and modernising its transportation system, particularly in the rail and highway sectors.
Railway Sector Highlights:
- From 2012 to 2024, China’s railway electrification rate increased from 52.3% to 73.8%, significantly reducing reliance on fossil fuels.
- China Railway has adopted a new development model that emphasises low-carbon equipment, energy efficiency and pollution control, aligning with national carbon peaking and neutrality goals.
- Green technologies are being systematically integrated into the design, construction and operation phases of rail infrastructure.
Highway Sector Highlights:
Years of sustained R&D investment have enabled the development of core technologies for green highway construction, including:
- Ecosystem protection during construction;
- Environmental quality enhancement;
- Efficient resource utilisation;
- Digitally enabled project management.