PSA International Pte Ltd (PSA), a global ports and supply chain solutions provider, and Kazakhstan Railways (KTZ), the operator of the main railway network of the Republic of Kazakhstan, have signed an agreement to establish a joint venture company, KPMC.
The Agreement was signed during the Kazakhstan-Singapore Business Forum in Astana on 22 May 2023, in the presence of Singapore’s President, Halimah Yacob, and Kazakhstan’s Prime Minister, Alikhan Smailov.
KPMC will promote the development of the Trans-Caspian International Transport Route (TITR), which is expected to enhance connectivity and trade from Southeast Asia and China, through Kazakhstan, and beyond to Europe.
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.
This increases cargo flow, decreases transit times, and reduces the cost of transportation through the TITR, according to PSA.
The Agreement is subject to customary conditions including regulatory approval.
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Mr Tan Chong Meng, Group CEO of PSA International, said: “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.
“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,” Meng added.
In April 2023, PSA and BDP International, Inc (BDP) announced the combination of their business units to form a new brand, PSA BDP.
More recently, PSA announced that through its fully owned subsidiary PSA-BDP Turkey Supply Chain Solutions Pte Ltd, it will acquire 75 per cent of the shares of privately-held ALISAN Logistics A.S. (ALISAN).