PSA International Pte Ltd (PSA) and Kazakhstan Railways (KTZ), have signeed an agreement to establish a joint venture company, KPMC Ltd (KPMC) to boost trade through the Trans-Caspian route.
The Singapore-headquartered global ports and supply chain solutions provider, and the operator of the main railway network of the Republic of Kazakhstan, noted that the Agreement is subject to customary conditions including regulatory approval.
"KPMC will promote the development of the Trans-Caspian International Transport Route (TITR), enhancing connectivity and trade flows from Southeast Asia and China, through Kazakhstan, and beyond to Europe," the announcement said.
It noted that the TITR is a rail corridor route that connects China and Europe, offering cargo owners an additional intermodal transport option to help them balance their supply chain needs of resilience, agility and sustainability.
The partnership between KTZ and PSA aims to develop the TITR through initiatives such as the organisation of block trains and provision of station-to-station products and services.
The statement noted that this increases cargo flow, improves transit times and reduces the cost of transportation through the TITR.
Central Asia expansion
"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," said Tan Chong Meng, Group CEO of PSA International.
"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," he added.
Meanwhile, Wan Chee Foong, Rrgional CEO Middle East South Asia & Head of Group Business Development of PSA International, noted that PSA's global presence with an established network of ports and supply chain capabilities enables the company "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," Wan Chee Foong said.
The Agreement was signed during the Kazakhstan-Singapore Business Forum in Astana on May 22, 2023, in the presence of Singapore's President Mdm Halimah Yacob and Kazakhstan's Prime Minister Alikhan Smailov.