KLN (Singapore) Pte Ltd, a subsidiary of Kerry Logistics Network Limited, has signed a memorandum of understanding with Sitthi Logistics for the establishment of a joint venture to develop a dry port in the Vientiane Logistics Park in Laos.

According to Kerry, the deal is part of the company’s development strategy to seek accelerated growth in ASEAN by developing an integrated Greater Mekong Region platform covering Thailand, Cambodia, Myanmar and Laos.

The dry port will be situated in an area of approximately 35 hectares and will be developed in phases. Vientiane connects the railway lines between China and Thailand from Kunming to Bangkok. The new dry port will help attract investment to the area and turn the city into a major economic hub along the Belt and Road trade routes.

“We at Kerry Logistics are proud to play a role in the development of Laos and what will become an important economic corridor between China and Southeast Asia,” said George Yeo, chairman of Kerry Logistics. “We are fortunate to have in Sitthi Logistics a strong local partner. Together with Sitthi Logistics, we will work hard to make the dry port project a success and an asset to the Laotian economy.”

Kerry Logistics will provide management expertise while Sitthi Logistics will provide local support. The facilities will allow the logistics industry to transport goods by road and rail, creating an efficient logistics system to accommodate a range of industries and facilitate distribution along the economic corridor between China and Thailand.

Kerry Logistics completed the first phase of an inland port in Mandalay and another in Yangon in 2018 to support booming intra-Asia trade.