FESCO Group (Russian Far East Ocean Shipping Co., Ltd.) and Xi'an Free Trade Port Construction and Operation Co., Ltd. plan to cooperate in the construction of the Zabaikalsk terminal project and jointly build a modern logistics and transportation center.
FESCO Group and Xi'an Free Trade Port recently signed a corresponding strategic cooperation memorandum.
Both parties plan to leverage their respective key capabilities and assets to jointly participate in the establishment of the Zabaikalsk Logistics and Transport Center in the Russian village of the same name near the Zabaikalsk-Manzhouli railway checkpoint . The parties will consider forming a joint venture to implement the project, as well as develop logistics and depot infrastructure at other locations.
According to FESCO, the "Zobaikalsk Terminal" is an important investment project of FESCO, aiming to build a modern transportation and logistics center in the village of Zabaikalsk, including a container terminal, temporary storage warehouse, its own railway station Obmennaya, railway and other transportation infrastructure. FESCO plans to invest a total of more than EUR 40 million in the facility.
Zabaikalsk is the main land crossing point for Russia-China trade. Last year, transit traffic at this site increased by 26% year-on-year, reaching a record level. " We are very grateful to our colleagues at Xi'an Free Trade Port for seeing the great prospects of the Zabaikalsk terminal project and for being ready to consider the possibility of participating in a joint venture to implement the project. By working together, we will be able to more actively promote economic and trade relations between the two countries development." said Aidemir Usakhov, Vice President of FESCO Railway Division.
The memorandum of cooperation also envisages strengthening cooperation between the two parties on other strategic issues. For example, jointly develop railway container transportation from Shaanxi Province and Xi'an City to Russia and Belarus to form a stable import and export freight volume.
This article was originally published on New Silkroad Discovery
