DHL Global Forwarding and Latvian state-owned railway company Latvijas dzelzceļš have signed a memorandum of understanding and cooperation to establish multimodal rail connections between China and Latvia.

According to DHL, under the agreement, new connections will include guaranteed transit times and simplified customs and handling procedures for inbound and outbound cargo, as well as support for more flexible shipments such as less-than-container-load freight.

“So far, very few Baltic or Nordic businesses have fully tapped into the immense market opportunities that China and the broader Asia-Pacific region currently offer,” said Steve Huang, CEO of DHL Global Forwarding Greater China. “The two regions’ exports made up only 0.7% of China’s imports on average between 2011 to 2015, despite China’s demand for overseas goods which both regions excel in -- like high-quality food products, textiles, and pharmaceuticals -- growing rapidly in this time. With the economies of Latvia and its neighbours expected to grow faster than the rest of the European Union, businesses in the region will need to look to new markets like China to fuel their expansion. By building rapid, reliable logistics connections between the Baltic and Asia Pacific, we hope to give the region’s businesses a strong foundation for ongoing growth.”

The partnership also covers ocean freight and intermodal shipping between Latvia, Scandinavia, and the UK and Ireland, as well as air and road freight connections to major cities across continental Europe.

“DHL has led the way in realizing the Belt and Road’s opportunities for numerous countries, including the Nordic states that its Shenzhen-Minsk route will directly service,” said Edvīns Bērziņš, president of LDz. “This new agreement will give Latvian businesses the flexibility and confidence to engage in freer trade with Chinese and Asian markets, as well as establish Latvia as a strategic gateway along the Belt and Road to other parts of Europe – a twofold boost to the country’s production and logistics industries.”

DHL recently launched a multimodal route connecting Shenzhen to Minsk via rail, under another agreement with the national rail provider in Belarus.