Kerry Logistics has announced the signing of a Memorandum of Understanding between its subsidiary, KLN (Singapore) and Laos’s Sitthi Logistics for the establishment of a joint venture to develop a dry port in the Vientiane Logistics Park in Laos.
The dry port will be situated in an area of approximately 35 hectares, and it will be developed in phases for the transfer of cargo at Vientiane, which connects the railway lines between China and Thailand from Kunming to Bangkok.
Kerry Logistics will provide management expertise, while Sitthi Logistics will provide local support. The facilities will allow the logistics industry to transport goods by road and rail and create an efficient logistics system to accommodate different industries and facilitate distribution along the economic corridor between China and Thailand.
It is expected that the dry port will help attract investment to Vientiane and its surrounding areas and turn the city into a major economic hub along the Belt and Road trade routes. To enable the Laotian economy to benefit from the Kunming-Bangkok rail and to utilise the resources and labour in Laos, the Lao government is introducing economic incentives and conducive regulations for the building of an efficient logistics centre in Vientiane.
George Yeo, Chairman of Kerry Logistics, said, “We are proud to play a role in the development of Laos and what will become an important economic corridor between China and Southeast Asia. Together with Sitthi Logistics, we will work hard to make the dry port project a success and an asset to the Laotian economy.”
The move is part of Kerry Logistics’ development strategy to seek accelerated growth in ASEAN by developing an integrated Greater Mekong Region platform covering Thailand, Cambodia, Myanmar and Laos. In 2018, Kerry Logistics completed the Phase one of the inland port in Mandalay and the inland port in Yangon. Kerry Logistics will continue to leverage its established network in Asia to take advantage of the booming intra-Asia trade and maintain its business growth in Asia.
Source: Kerry Logistics
