Building Asia Pacific’s Transport Future will Unlock Trillions in Growth
Asia Pacific has long been a powerhouse of global trade, but the region’s transport infrastructure is creaking under the weight of its economic ambitions.
From the bustling ports of Singapore to the isolated highways of Central Asia, the region faces a severe connectivity crisis that’s stifling growth, driving up costs, and widening inequalities.
About 1.8 billion people across the region still lack reliable transport links. To put that into perspective, that’s nearly four in every ten people. It dwarfs the 570 million without electricity and the 680 million without access to safe water. Transport, it seems, is the silent barrier holding back Asia Pacific’s next leap forward.
A Shortfall Measured in Kilometres and Missed Opportunities
The data paints a sobering picture. Low and lower-middle-income nations in Asia Pacific have fewer than four kilometres of transport infrastructure per thousand residents. Even the region’s higher-income countries only manage around twelve. By comparison, OECD countries boast a robust seventeen kilometres per thousand residents.
Measured by land area, the gap is just as glaring. Asia Pacific averages 433 kilometres of transport infrastructure per thousand square kilometres, trailing far behind the OECD’s 690. These limited networks inflate shipping costs, extend delivery times, and sap regional competitiveness.
One disruption, like delaying a million containers, can send shipping rates soaring by over $2,000 per container. With few alternative routes, businesses are left with little choice but to absorb the extra costs or pass them on to consumers. It’s a recipe for inflation and broken supply chains.
The Double Burden of Distance and Isolation
Landlocked nations and small island states bear the brunt of this infrastructural gap. These economies must haul goods an average of 1,500 kilometres, double the regional norm, just to get them to market. They also pay nearly twice as much for a standard 40-foot container.
When freight costs double, inflation follows suit. The International Monetary Fund notes that such price hikes can nudge consumer prices up by nearly a full percentage point. In struggling economies, that’s a cost few can afford.
The Twin Pillars Missing From Asia’s Networks
It’s not just the lack of infrastructure—it’s the poor quality of what exists. National highways make up only 5% of roads in low-income countries, compared to 11% in wealthier nations. Average intercity speeds crawl at just 68 kilometres per hour, far below the 99 kilometres per hour enjoyed by richer economies.
Ports aren’t faring much better. Three-quarters of Asian ports score below the global average for connectivity. And after the pandemic, aviation connectivity in Asia slipped to fewer than three flights per thousand people—leaving it trailing well behind Europe and North America.
The Environmental Toll of a Broken Transport System
Poor connectivity isn’t just bad for business—it’s disastrous for the environment. Transport accounts for around 12% of Asia’s carbon emissions. That figure jumps to 19% in landlocked countries and a staggering 50% in small island states.
Road transport, responsible for nearly 90% of these emissions, is the biggest culprit. Limited infrastructure also means fewer options during environmental disasters, with fragile bridges and tunnels—just 1% of total road length—expected to bear nearly a quarter of future climate-related damages.
Five Critical Steps to Rebuild and Future-Proof Asia Pacific’s Transport
1. Expand and Upgrade Transport Networks
Asia’s infrastructure shortfall isn’t just about quantity—it’s about quality and efficiency. Upgrading highways, strengthening bridges, and developing dedicated freight corridors can lift network performance to meet international standards.
Using stronger materials and climate-resilient designs helps keep trade flowing even after storms or floods.
2. Invest in Multimodal Transport Systems
Relying heavily on road transport is both unsustainable and risky. Expanding heavy rail networks, high-speed passenger trains, and urban transit systems not only reduces emissions but also provides vital alternatives when road networks fail.
Shifting even a small percentage of freight from road to rail can slash fuel consumption and shipping costs.
3. Prioritise Landlocked and Island Economies
For landlocked and small island nations, distance is economic destiny. Improving regional corridors to seaports, enhancing dry port infrastructure, and upgrading island airports can halve shipping distances and costs.
These targeted investments unlock enormous economic returns for the most isolated communities.
4. Mobilise Long-Term Financing
Asia Pacific needs to invest an eye-watering $43 trillion between 2020 and 2035—roughly 2% of regional GDP annually. While roads require the largest share, nearly 40% of funding must support rail, ports, airports, and urban transit to build a balanced and resilient system.
The project finance price tag may seem steep, but the payoff is undeniable: faster trade, economic growth, and lower emissions.
5. Strengthen Regional and Multilateral Cooperation
Official development assistance for Asian transport projects has already climbed from 43% to 55% of the global total. Rail financing alone has increased ten-fold in recent years. Aligning national policies with clear, measurable targets—covering not just roads but rail, ports, and aviation—is the next crucial step.
Governments must embed multimodal planning into their transport strategies and track their progress rigorously. Encouragingly, many Asia Pacific nations have already improved their global logistics rankings since 2016, proving that coordinated policies backed by investment deliver real results.
Turning the Corner on Asia Pacific’s Transport Challenge
Asia Pacific stands at a defining moment. It’s home to the majority of the world’s population and trade, yet it moves people and goods on a network that’s thin, fragile, and unbalanced.
Bridging the transport gap will take trillions in investment, smarter design, and tighter regional cooperation. But the rewards—faster economic growth, greater resilience, and cleaner, greener transport—are well worth the effort. The time to act is now.
