DHL Global Forwarding and Kazakhstan Temir Zholy Express, the country’s national multimodal operator, have signed a memorandum of understanding to enhance KTZ Express’ China-Europe rail freight link.

“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,” said Sanzhar Yelubayev, president of KTZ Express. “KTZ Express will work hand in hand with DHL to further develop end-to-end logistics solutions via rail and multimodal solutions in this part of the world. We will continue to work on reviving the Silk Road and increasing our capacity to move goods within the region as its economic growth and development gain critical momentum.”

Under the MoU, KTZ Express will operate point-to-point and China-Kazakhstan rail services, and add several logistics service locations to its current network, while DHL will develop its forwarding capabilities along trading routes connecting China, Kazakhstan and CIS countries. The two companies will also collaborate to develop additional rail links along the South Silk Road trade route via Kazakhstan to Europe.

The partnership will stimulate greater rail connectivity and trade between China, Kazakhstan, the CIS countries and Europe. DHL will have access to more commercial block train services, allowing it to offer the overland rail routes as a complimentary alternative to traditional sea and air freight, according to DHL.

“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,” said Steve Huang, CEO of DHL Global Forwarding China. “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.”

As part of the MoU, DHL will also provide logistics expertise on temperature controlled containers.