Freight Forwarder Network: PSA Signs China-Europe Railway Corridor Agreement with Kazakhstan Railways

05月24日 11:46:35

Singapore-based PSA International Group (PSA International) and Kazakhstan Railways (KTZ), Kazakhstan's main rail network operator, will set up a joint venture to seize the growing rail freight business on the so-called "Middle Corridor" route linking China and Europe, boosting the development of the Trans-Caspian International Transport Route (TITR).


Tan Chong Meng, CEO of PSA International Group, said at the Kazakhstan-Singapore Business Forum in Astana that the joint venture is a milestone moment for PSA and that the route provides an alternative route via Russia as it extends our global footprint to Central Asia.

The TITR is a rail corridor route that passes through China, Kazakhstan, the Caspian Sea, Azerbaijan and then Georgia, enabling products to be shipped to European countries and Turkey via Black Sea ports.

Prior to Russia's invasion of Ukraine in February 2022, the northern corridor via Russia accounted for 95% of total rail freight in Central Europe, but since then most European importers and exporters have avoided the corridor, forcing rail freight to turn to the sea, or the longer, more expensive central corridor via the Caspian Sea.


PSA-KTZ joint venture KPMC aims to address poor connectivity and improve trade flows along the Trans-Caspian international shipping route, which carries goods from China and Southeast Asia to Kazakhstan and then to Europe.

The partnership will organize trains and provide station-to-station products and services aimed at increasing cargo flow, reducing long transit times, providing important and valuable options for cargo owners, reducing transportation costs along the middle corridor, and improving the agility, resilience and sustainability of their businesses.


CEVA Logistics estimates that Chinese shipments to Central Asia grew 30 percent last year, while Chinese shipments to Russia grew 60 percent..

In addition to the minefield of sanctions, cost is another major factor hindering European importers from transporting goods through Russia in the northern corridor. Freight rates for rail containers from China to Europe are more than five times higher than sea freight rates, and weakening demand means there is now plenty of room on ships leaving Asia.

PSA BDP operates in 39 countries as a common carrier operating without a vessel, providing contract logistics, air freight and container space capabilities. This allows PSA BDP to offer shippers more route options via rail-connected marine terminals and inland hubs, avoiding trucking and reducing the group's carbon footprint.

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