DHL, Ukrainian Railways and Center of Transport Service Liski to drive rail connectivity between China and Ukraine

• The
  three companies entered into a Memorandum of Understanding to create better connectivity
  between China and Ukraine
• A
  China-Ukraine transport corridor will bring European customers closer to
  businesses in Asia

SHANGHAI, CHINA – Media
OutReach – 21 January 2021 – DHL
Global Forwarding (“DHL”), the international freight specialist arm of Deutsche
Post DHL Group, Ukrainian Railways, and the Center of Transport Service Liski
(CTS Liski), the logistics division of Ukrainian Railways, signed a Memorandum
of Understanding (MOU) to develop rail connectivity between China and Ukraine. The
three companies will endeavor to create better connectivity between the two
continents to facilitate trade, namely from Asia via China to Ukraine and other
European markets, and from Europe via Ukraine to China and other Asian markets.

 

“There is a lot of excitement for those watching trade
developments between China and Ukraine. Further to China’s newly-established
position as Ukraine’s
top trading partner, recent reports have revealed Ukraine’s plans to start
negotiations on a free trade agreement with China. I am convinced that this
partnership to create rail connectivity will expand trade flows between
businesses in Asia and Europe when it comes into fruition and in turn, contribute
toward the deepening of trade ties between the two countries,” said Steve
Huang, CEO, DHL Global Forwarding Greater China.

 

With a population of 40 million, Ukraine is one of the
largest European countries by population. The Eastern European country is strategically
located at the crossroads of the Belt and Road between Russia and Turkey, with
access to the Black Sea and the Sea of Azov. The enhanced rail connection would
provide Asian businesses access to the Baltic States, Belarus, and the Nordic
countries. Goods from neighboring countries can be consolidated in Kiev, the
capital of Ukirane and sent by rail to China for onward dispatch to various
Asian markets using either air or road freight.

 

“The memorandum between
Ukrainian Railways and DHL provides for the organization of container trains, attraction of additional cargo
and the geography expansion of transportation. In fact, this is a new level of
cooperation and a completely different operating level of CTS Liski,” said
Volodymyr Zhmak, Chairman of the Management Board of Ukrainian Railways.

 

Ukraine’s
trade with Asia is on the rise. China, Ukraine’s top agricultural importer,
consumed USD1.41 billion worth of agricultural products in the first half of
2020, and ASEAN countries have seen their imports of Ukrainian goods increase
by 48% since 2016.

 

“This collaboration is the mark of a momentous milestone for
the China-Ukraine rail corridor. We look forward to working with DHL and
Ukrainian Railways to develop and speed up containerized rail freight between
China and Europe, particularly Eastern Europe, and the inter-regional trade opportunities
that this will bring businesses in Ukraine and our neighbors,” said Edvins
Berzins, CEO of CTS Liski.

 

Snapshot: DHL Global
Forwarding’s Multimodal Freight Network along China’s Belt and Road Initiative

As the pioneer in innovative multimodal shipping solutions
from China to Europe, DHL has been offering a suite of innovative and flexible
multimodal solutions since 2010, which connects Chinese mainland, Taiwan China,
Japan and Southeast Asia to Europe.

• West
  Corridor: Fastest connection between Europe, and new emerging inland Chinese
  hubs of Chengdu and Xi’an among others; supporting high-tech, automotive, and
  retail manufacturers located in Western China with cost-effective access into
  European markets
• North
  Corridor: From China’s Eastern & Southern coast via Trans-Siberian Railway
  to Moscow, and further to Poland and Germany; it connects China’s engineering
  and manufacturing hubs in Yangtze & Pearl River deltas to pan-European
  demand in 18-20 days
• South
  Corridor: Traverses three Central Asian countries — Kazakhstan, Azerbaijan, and
  Georgia — as well as Caspian Sea before arriving at Istanbul in 12-14 days
• Sea
  transit: Connecting Japan, Korea and Taiwan China to Chinese mainland via ferry
  services, for onward journey to Europe; as well as Shanghai to Europe via
  Piraeus, Greece
• Road connection: linking
  manufacturing base in Vietnam, and South East Asia to Europe

 

Note to
editors:

Relations between China and Ukraine are flourishing, and
DHL is supporting this growing partnership by establishing better rail
connectivity between Europe and Asia. Read
about it and
download infographics here.