Kerry Logistics Network today announced the strategic cooperation with D&G Technology Holding Company to explore collaboration opportunities under China’s ‘Belt and Road’ initiative.
Kerry made the investment in D&G’s wholly-owned subsidiary Topp Financial Leasing (Shanghai).
D&G Technology is principally engaged in the manufacturing, distribution, research and development, and leasing of road construction services, mainly to China, Australia, Russia, South and Southeast Asia, the Middle East and a number of countries in Africa.
Through the alliance, Kerry expects to generate significant business synergy by providing logistics services to D&G Technology in the delivery of products to customers along the Belt and Road trade routes, and enhance the development of its operations in the region.
Edwardo Erni, executive director and managing director – China & North Asia of Kerry Logistics, said: “The strategic cooperation is part of Kerry Logistics’ global development strategy to tap into the growth opportunities brought forth by the Belt and Road initiative. The new venture allows us to support D&G Technology in the service of its customers in the Belt and Road countries. We have been expanding our business across Central Asia and countries in the Commonwealth of Independent States in recent years and believe this collaboration can bring in new business and customers in the region.”
Currently, Kerry Logistics is moving 200-300 TEUs per week through its twice-weekly block train service from China’s Lanzhou to Central Asia’s Kazakhstan and Uzbekistan, via the Alashankoy, or Khorgos gateway. The company is also running a weekly rail freight service from Yinchuan to Kazakhstan and Uzbekistan, handling approximately 100 TEUs per week.