Kerry Logistics has acquired a 50% stake in Lanzhou Pacific Logistics Ltd., joining shareholder and joint venture partner China Railway Container Transport Company Limited in the management and operations of LPL.

According to Kerry, LPL was founded in 2002 and specializes in intermodal brokerage services across China and Central Asia including Uzbekistan, Kazakhstan, and Russia. LPL has a nationwide rail freight network covering more than 100 cities in China and provides container freight stations and domestic door-to-door logistics services. LPL’s customers include companies in the non-ferrous metals, chemicals, auto parts, agriculture and building materials industries.

“This acquisition will enable us to draw on the vast opportunities created by the Belt and Road initiative,” said William Ma, group managing director of Kerry Logistics. “Not only will it further strengthen our rail freight capability throughout China and Central Asia, but also allow us to consolidate our expertise in project logistics within our global network. It will additionally strengthen the rail and road network we have established in The Commonwealth of Independent States through our new joint venture. By constructing an integral multimodal freight chain that connects China, Central Asia and Europe, we are committed to providing new options and cost-competitive intermodal solutions to our international customers.”

In August 2012, China’s State Council gave its approval for Lanzhou to become the fifth state-level development zone in the country. Located in Gansu province, Lanzhou has historically been used as the gateway to the West and has also been chosen to be the major hub of the Silk Road Economic Belt which spans 60 countries, according to Kerry.