23 May (Lloyd's List) - SINGAPORE’S PSA International is making inroads into both the multimodal business and the Central Asian region, through a joint venture deal with Kazakhstan’s main railway network operator Kazakhstan Railways (KTZ).

KPMC, the joint venture company with KTZ, will promote the development of the Trans-Caspian International Transport Route, PSA said in a release.

The TITR rail corridor connects China and Europe via Kazakhstan where PSA already has interests at both ends of the line, through a joint venture with Germany’s Duisburger Hafen that has stakes in a multimodal logistics centre in Chongqing, as well as China Railway United International Container.

PSA’s latest partnership aims to develop the TITR through initiatives such as the organisation of block trains and provision of station-to-station products and services. 

“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,” said PSA International group chief executive Tan Chong Meng.

PSA International regional chief executive for Middle East South Asia and head of group business development Wan Chee Foong noted that the “synergistic partnership will not only bolster PSA’s efforts to expand its rail product offerings, but also empower KTZ to tap into new markets and establish itself as a pivotal player in the global logistics landscape”.

The tie-up with KTZ gives PSA a significant foothold in what is emerging as a key transport corridor and builds on its intermodal rail network investments in China, the Middle East and North America.

The agreement is timely and comes amid a flurry of activity in the Central Asian region, as various interests push their versions of intermodal Asia-Europe connectivity amid rising geopolitical tensions and supply chain uncertainties.

The Russia-led International North-South Transport Corridor connecting Russia to India and Iran, reportedly recently received a boost with the former agreeing to bankroll a key railway link in Iran.

With the northern route of China’s New Silk Road rail corridor passing through Russia, the TITR, otherwise known as the Middle Corridor, provides an alternative to shippers that wish to avoid moving their freight through Russia.

PSA, like many other port operators has also been developing its logistics and network capabilities in recent years. After acquiring US-based supply chain solutions provider BDP International in 2022, PSA recently merged its cargo business unit into the entity and rebranded it to enhance service and solution offerings across the supply chain.