Kerry Logistics Network Limited has begun a strategic cooperation with D&G Technology Holding Company Limited with an investment in its wholly owned subsidiary Topp Financial Leasing (Shanghai) Co., Ltd.

According to Kerry, the cooperation serves as a first step for the two companies to further explore collaboration opportunities under 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,” said Edwardo Erni, executive director and managing director of China and North Asia at Kerry Logistics. “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.”

D&G Technology is involved in the research and development, manufacturing, distribution and leasing of asphalt-mixing plants and the provision of road construction support services, mainly to China, Australia, Russia, South and Southeast Asia, the Middle East and a number of countries in Africa. It subsidiary Topp Financial Leasing leases the asphalt-mixing plants and road construction equipment to D&G Technology’s customers in China.

Kerry expects to generate business synergy by providing logistics services to D&G Technology in the delivery of products to customers along the Belt and Road trade routes.

Kerry Logistics currently moves 200-300 TEUs per week on its twice-weekly block train service from Lanzhou to Kazakhstan and Uzbekistan, via Alashankoy or Khorgos. Another weekly rail service from Yinchuan to Kazakhstan and Uzbekistan transports approximately 100 TEUs per week, according to Kerry.