To forge a rail link between Europe and Asia, DHL Global Forwarding has signed a memorandum of understanding with Kazakhstan Temir Zholy Express (KTZE).

KTZE functions as the national multimodal operator, says Atlanta area Air Cargo World. China Money Network reported that the MOU will clear the way for better rail connectivity and enhance trade between China, Europe, Kazakhstan and other former Russian provinces.

KTZE will be responsible for operating rail activities from point to point, as well as across the border to China. DHL will focus on developing a relationship with and linking China, Kazakhstan and other CIS countries, while KTZE will add locations to its existing network.

Additional rail offerings along the "South Silk Road" trade route to Europe, by way of Kazakhstan, will also be added.

This new partnership is expected to offer new opportunity in the Khorgos Special Economic Zone, which is on the China/Kazakhstan border, and is considered a major trade node connecting China and Central Asia for onward distribution to Europe.

The EU reports that the volume of China-EU trade is more than €one billion every day. The KTZ group expects annual trade between China and Europe to grow by 1.5 times to reach US$1.2 trillion with Astana, Kazakhstan's capitol, aiming to have eight per cent of trade through Kazakhstan.

For its part, DHL Global Forwarding will provide logistics expertise which includes temperature controlled containers to support businesses in industries like technology and electronics.

DHL GF introduced the first temperature controlled capabilities which can be tracked and remotely modified. This allows for all-year-round multimodal shipping for temperature sensitive products.