Thursday, June 15, 2017

Global Port Group Signs Up Memoranda for Freight and Logistics System on Silk Road Route

DP World Expands Interests in Kazakhstan
Shipping News Feature
DUBAI – KAZAKHSTAN – Two Memoranda of Understanding (MoU's) have been signed between global port group DP World and the Kazakhstan government for the development of a Port Community System (PCS) and to integrate customs processes with the aim of creating a multimodal transport corridor. PCS is an electronic platform developed by DP World subsidiary Dubai Trade, which enables the exchange of information between freight organisations involved in maritime, inland and airport processes. The aim is to improve ease of doing business in Kazakhstan's ports and free-zones through paperless transactions avoiding delays and duplication.

The first agreement was signed between DP World and the National Company Kazakhstan Temir Zholy (KTZ) for the establishment of a joint venture company to implement and manage the PCS system aimed at creating the multimodal Eurasian Transcontinental Corridor, featuring automated processes for cargo delivery and the unification of logistics centres, sea and dry ports into a single transport network.

The second MoU was signed between DP World, KTZ and the Committee of State Revenues of the Ministry of Finance of the Republic of Kazakhstan (Customs) to ensure the integration of customs processes into the online portal. Kazakhstan’s potential as a key transit corridor for China’s One Belt, One Road initiative can be realised by focusing on soft and hard infrastructure development that supports multimodal transport links, according to DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem.

Mr Bin Sulayem was speaking at the Astana Economic Forum, an annual event that provides a platform for discussion on the world’s economic opportunities and challenges, and hosts government and business figures from more than 80 countries. During his panel discussion that focused on the New Silk Road, he said that multimodal connectivity is key to realising the Kazakhstan President’s ‘path to the future’ vision, which includes the ‘Nurly Zhol’ – a $9 billion infrastructure spending programme – to help prepare a future-ready economy. Mr Bin Sulayem said:

“Our experience in Dubai and in the 40 countries where we operate globally has taught us that integrating services makes trade faster, safer and more efficient for our stakeholders, attracting investment and helping business. That’s why these announcements today are important for Kazakhstan, providing smart trade solutions for the country and to increase efficiencies for business.

“We have experience of delivering this at our flagship operation in Jebel Ali, where the Dubai Logistics Corridor connects road, rail, air and sea transport providing seamless cargo movement through the Dubai Trade Portal with more than 50,000 transactions conducted each day.

“Kazakhstan has tremendous potential and its leadership is working hard for its people – putting in place the right policies and procedures. It is at the crossroads of Asia and, although landlocked, President Nazarbayev’s commitment to improve internal and external connectivity to avoid the ‘transportation trap’ will propel growth. We are proud to be working with the government to build one of the largest transport and logistics hubs in the region.”

Earlier this year, DP World also announced its involvement in the development of a Special Economic Zone (SEZ) in Aktau to boost trade and logistics in the country. It builds on DP World’s management advisory services contract with the Port of Aktau, Kazakhstan’s main cargo and bulk terminal on the Caspian Sea. The company also provides advisory services under a separate contract with Kazakhstan Temir Zholy (KTZ), Kazakhstan’s national railway company, for the development of the Khorgos SEZ and Inland Container Depot.

Photo: DP World Group Chairman and CEO Sultan Ahmed bin Sulayem at the signing of the agreements with Kazakhstan government officials in Astana