Lithuanian Railways and China Merchants Logistics Holding have signed an agreement to establish a joint venture specialising in forwarding and logistics services. The new company, which is expected to launch operations in the first half of 2016, will provide freight forwarding services between Lithuania, Belarus and China, as well as associated logistics.
The agreement will open up more business opportunities, the parties also considering the development of joint container train projects, informed Stasys Dailydka, CEO of Lithuanian Railways.
The signed agreement will open up more opportunities for not only setting up the joint venture companies, but also between the two countries for business. Vesima building materials for the industrial park is being constructed, and when it is built, we will have all the possibilities of delivering the necessary goods for the park and the creation of joint container train projects
The first transport of the jv will include construction materials for the Great Stone Industrial Park in Belarus (Minsk) and will be delivered via the port of Klaipeda. China Merchants Logistics Holding is a China Merchants Group (CMG) owned enterprise responsible for logistics and freight forwarding services. China Merchants Group is also one of the stakeholders in industrial park (20%) and is investing approximately USD 500 million in developing the facility.
CMG is a Chinese state-owned company operating in the port and terminal management, transport and logistics, banking and finance, real estate management sectors. In 2014 its profit reached record highs, CMG has reached almost 28 billion yuan net profit (EUR 3.9 billion).