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Thursday, 25.04.2024, 09:57
DHL and Latvian Railways join forces to boost Baltic-China trade
The Memorandum of Understanding and Cooperation (MUC) signed
today between both companies will see both organizations focus on establishing
multimodal rail connections between China and Latvia, including both freight
connections and consolidation services centered in Riga City. Under the MUC,
new connections will include guaranteed transit times and simplified customs
and handling procedures for inbound and outbound cargo, as well as support for
more flexible shipments such as Less-than-Container Load (LCL) freight.
“So far, very few Baltic or Nordic businesses have fully
tapped into the immense market opportunities that China and the broader Asia
Pacific region currently offer,” said Steve Huang, CEO, DHL
Global Forwarding Greater China. “The two regions’ exports made up only
0.7% of China’s imports on average between 2011 to 2015, despite China’s demand
for overseas goods which both regions excel in – like high-quality food
products, textiles, and pharmaceuticals – growing rapidly in this time.”
“With the economies of Latvia and its neighbors expected to
grow faster than the rest of the European Union businesses in the region
will need to look to new markets like China to fuel their expansion. By
building rapid, reliable logistics connections between the Baltic and Asia
Pacific, we hope to give the region’s businesses a strong foundation for
ongoing growth.”
The MUC comes as DHL begins service along its newest
Asia-Europe multimodal route connecting Shenzhen to Minsk via rail. DHL holds
similar agreements with national rail providers in Belarus, Chengdu, and other
major hubs along China’s proposed “Belt and Road” trade routes.
“DHL has led the way in realizing the Belt and Road’s
opportunities for numerous countries, including the Nordic states that its
Shenzhen-Minsk route will directly service,” said President of LDz, Edvīns
Bērziņš. “This new agreement will give Latvian businesses the flexibility and
confidence to engage in freer trade with Chinese and Asian markets, as well as
establish Latvia as a strategic gateway along the Belt and Road to other parts
of Europe – a twofold boost to the country’s production and logistics industries.”
The MUC also includes provisions for ocean freight and
intermodal shipping between Latvia, Scandinavia, and the UK and Ireland, as
well as air and road freight connections to major cities across continental
Europe.