PSA International and Kazakhstan Railways (KTZ), the operator of the main railway network of the Republic of Kazakhstan, have signed an agreement to establish a joint venture company KPMC to promote the development of the Trans-Caspian International Transport Route (TITR).
The aim is to enhance connectivity and trade flows from Southeast Asia and China, through Kazakhstan, and beyond to Europe. The route is a rail corridor route that connects China and Europe, and the partners say it offers cargo owners an additional intermodal transport option to help them balance their supply chain needs of resilience, agility and sustainability.
KTZ and PSA aim to develop the route through initiatives such as the organisation of block trains and provision of station-to-station products and services. This is anticipated to increase cargo flow, improve transit times and reduces the cost of transportation.
PSA’s ports and cargo solutions portfolio comprises over 60 deepsea, rail and inland terminals, across 160 locations in 42 countries.
Tan Chong Meng, Group CEO of PSA International, said, “This joint venture is a milestone moment for PSA, as it expands our global footprint into Central Asia, and reflects our continued commitment to enhance global connectivity and enable sustainable trade. By partnering with KTZ to develop a holistic physical and digital ecosystem for the users and stakeholders of the Trans-Caspian International Transport Route, we seek to create a seamless and efficient logistics network that offers cargo owners a vital and valuable option to improve the agility, resilience and sustainability of their businesses.”
Wan Chee Foong, Regional CEO Middle East South Asia & Head of Group Business Development of PSA International, said, “PSA’s global presence with an established network of ports and supply chain capabilities enables us to add value in the development and commercialisation of TITR. This synergistic partnership will not only bolster PSA’s efforts to expand its rail product offerings but also empower KTZ to tap into new markets and establish itself as a pivotal player in the global logistics landscape.”
The agreement was signed during the Kazakhstan-Singapore Business Forum in Astana on May 22. The forum brought together over 200 representatives of government agencies and business circles of the two countries.
Singapore is the largest trade and investment partner of Kazakhstan in the ASEAN region. Thus, following the results of the last year the bilateral trade turnover grew by 65% and reached almost $2 billion. In the same period the volume of Singaporean investments for the same period increased six-fold to a record level of $400 million.
"Today more than 230 Singaporean companies and joint ventures successfully operate in Kazakhstan. At the same time, we have great potential for expanding and deepening our economic ties. We have all necessary prerequisites for the implementation of breakthrough investment projects," Prime Minister of Kazakhstan Alikhan Smailov said.
The forum resulted in a number of bilateral agreements and memoranda aimed at strengthening cooperation in the areas of trade, investment, logistics and training of civil servants, as well as commercial documents worth $275 million.
