DHL said the new Memorandum of Understanding (MOU) “will enhance greater rail connectivity and trade between China, Kazakhstan, the Commonwealth of Independent States (CIS) countries and Europe, providing DHL Global Forwarding with additional commercial block train services. This will allow DHL Global Forwarding to enhance the scheduled rail services for customers, increasing the overland rail routes as a complimentary alternative to traditional sea and air freight”.
KTZE will be responsible for operating rail activities from point to point as well as across the China/Kazakhstan borders. DHL will focus on developing its forwarding capabilities along crucial trading routes linking China, Kazakhstan and CIS countries. “The partnership will see the development of additional rail offering along the South Silk Road trade route to Europe via Kazakhstan” DHL stated.
Steve Huang, CEO, DHL Global Forwarding China said: "We have witnessed tremendous growth in rail freight between Asia and Europe over the last few years; and we see a lot of growth potential in many intermediate trade hubs such as Kazakhstan. Kazakhstan's own economic development stands to benefit significantly from strong infrastructural links to China and the EU – its two largest trading partners. Transportation alone makes up more than 10 percent of the country's services exports."
Sanzhar Yelyubayev, President, KTZ Express, said the partnership will develop new end-to-end products along the Silk Road: "KTZ Express is looking to establish the most advanced central Asia logistics hub in Kazakhstan by enhancing various facilities across the country and improving our freight forwarding capabilities. The partnership with DHL will not only accelerate our pace towards achieving this goal but will also help us serve multinational corporations with regional needs in these high-potential markets”.
Under the MOU DHL Global Forwarding will provide logistics value-added services including reefer containers to support businesses in industries like technology and electronics. “DHL Global Forwarding introduced the first temperature controlled China-Europe rail service last year. DHL containers, powered by diesel-electric engines, have temperature control capabilities which can be tracked and remotely modified. This allows for an all-year round multimodal shipping solution for temperature sensitive products” it stated.