Port Wings News Network:
Kerry Logistics Network Limited (‘Kerry Logistics’; Stock Code 0636.HK) on 7 May announced the strategic cooperation with D&G Technology Holding Company Limited (‘D&G Technology’), a Hong Kong listed company, through an investment in its wholly-owned subsidiary Topp Financial Leasing (Shanghai) Co., Ltd (‘Topp Financial Leasing’). The cooperation serves as a first step for the two parties to further explore collaboration opportunities under the Belt and Road initiative.
D&G Technology is principally engaged in the manufacturing, distribution, research and development, 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. Through the alliance, Kerry Logistics expects to generate significant business synergy by providing logistics services to D&G Technology in the delivery of products to customers along the Belt and Road trade routes, and enhance the development of its operations in the region.
Edwardo Erni, Executive Director and Managing Director – China & North Asia of Kerry Logistics, said, “The strategic cooperation is part of Kerry Logistics’ global development strategy to tap into the growth opportunities brought forth by 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. 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’s subsidiary, Topp Financial Leasing, is primarily engaged in the business of finance leasing of asphalt mixing plants and road construction equipment to D&G Technology’s customers in China.
Currently, Kerry Logistics is moving 200-300 TEUs per week through its twice-weekly block train service from China’s Lanzhou to Central Asia’s Kazakhstan and Uzbekistan, via the Alashankoy or Khorgos gateway. The company is also running a weekly rail freight service from Yinchuan to Kazakhstan and Uzbekistan, handling approximately 100 TEUs per week. Kerry Logistics will continue to explore and capture opportunities arising from the Belt and Road initiative.