China Cosco Shipping Group and Lianyungang Port Group today have jointly signed an investment agreement with railway company Kazakhstan Temir Zholy for the Khorgos-Eastern Gate Free Economic Zone (FEZ) project in Kazakhstan.
Through the investment, China Cosco and Lianyungang Port will each hold 49% shares and 24.5% shares respectively in the project. The value of the investment was not disclosed.
The companies plan to further develop the railway network linking China and Europe at the FEZ.
Xu Lirong, chairman of China Cosco Group, said at the signing ceremony that the project will create synergy with the group’s shipping business and is an important step for China’s One Belt, One Road initiative, which was introduced by the central government in 2013 and focuses on connectivity and cooperation among countries primarily between China and the rest of Eurasia.
Khorgos-Eastern Gate FEZ was established by the Kazakhstan government in 2011 to boost the country’s exports and covers 600 ha of land including a dry port and logistics and production zones.