Rail Freight: A Techno-Political Battleground
Technological development and political rivalry are driving a fight for rare materials. This is making rail freight a critical part of the battlefield.
Technology and Global Supremacy
The Fourth Industrial Revolution is being marked by rapid changes in technology and geopolitics. In particular, the Chinese Communist Party sees technological supremacy as key to its long-term political strategy to supplant the USA in the battle for global leadership. This is creating a new type of military-industrial collaboration: commerical and economic measures are being co-opted into a lo-fi, but nonetheless viciously competitive battle between East and West.
Logisitics has always been a fundamental part of war, so it is no surprise that rail freight is emerging as a key battleground.
Access to rare materials
As the world decarbonises, increased amounts of the raw materials used to manufacture batteries are needed to secure and maintain technological advancement. China has been building its access to these materials steadily for many years, through its ‘Belt and Road Initiative,’ a centrepience of Chinese Leader Xi Jinping’s foreign policy. The initative draws its inspiration from the ancient ‘Silk Road’, which once linked the Western world with the Middle East and Asia. It involves funding the building of a mass of infrastructure across this historic route, to Africa, where raw materials, like the cobalt and lithium that is essential for batteries, can be found. Hundreds of projects have been delivered or are in progress. These include initiatives like the building of a new electric standard gauge Addis Ababa–Djibouti Railway stretching more than 470 miles. The first freight service began here in November 2015.
Corporate Warfare
Australia is another important source of these raw materials. China’s engagement with the Australian rail freight network shows perfectly how it can leverage its economic power in the service of long term geo-political ambitions.
US commentators have observed how Chinese railway companies made aggressive incursions into the Australian freight rail market from the mid 2000s, citing the use of state-backed financing, below-market pricing, and other anti-competitive tactics. By 2018 the three main Australian freight car manufacturers, Downer, UGL and Bradken were reportedly driven out of their local market, giving China strategic influence on another key supply route.
Concerns about this strategy have spread into the US railway industry, with the US Rail Security Alliance warning of the aggressive incursion of the Chinese companies into the US rail market. Measures to support the local US freight manufacturing base are under consideration. The United Kingdom, is taking its own measures too. On 4th January it created protected industries through the National Security and Investment Act 2021. This gives it the power to block foreign acquisition of a number of critical industrial areas including transport.
This points to another important angle. Australia is a key ally of the United States in South East Asia, and therefore one of China’s most significant regional rivals. Already in a cyber battle with Australia, China now has a high degree of technological understanding of some of its adversary’s most critical national rail infrastructure. The threat here is real: just a month ago millions of homes in Queensland were moments away from losing power after a major energy network was hit by a ransomware attack believed to have been the work of Chinese hackers.
In recognition of the rapidly escalating threat to rail assets, the US government has just passed cyber security regulation targeted at railways.
Overt Acts
There is no need to speculate as to the possible political use of rail freight as it is already happening. Last year, Lithuania triggered a major row with China when it opened a diplomatic office for Taiwan in its capital. This was a rare official show of support, given that Beijing considers Taiwan to be a part of its territory. China mounted a significant response, a major part of which was the halting of rail freight to Lithuania.
Technological advancement is geopolitical power, and it is in these miltary-industrial battle grounds that wars are now being fought. The industrial revolution was built on the railway and it won’t be able to escape its critical place in this growing conflict.
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Thanks for reading
All views are my own and I reserve the right to change my opinion (particularly when readers inform me of things of which I was unaware!).
If you’re interested in any advice, guidance or collaboration on any of the topics raised please feel free to drop me an e-mail on george.bearfield@ntlworld.com: My particular area of professional and research interest is practical risk and assurance of new technology. I’m always keen to engage on interesting projects in this area.
The image used on social media is "Freight train" by Loco Steve and is licensed under CC BY 2.0
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