Samik Logistics Marches into China for Rail Transportation

Samik Logistics, the biggest Korean rail transport company, is going t
o take part in carrying containers by rail in China, mainly focusing o
n Dalian in the middle of this October. This is the first time for a K
orean logistic business to extend their rail carrying system into Chin
a. This issue is related to the Kyoungui-rail restoration.
Samik Logistics will joint venture in China with the Dalian Port Autho
rity, sharing the initial capital investment of about 730 million won
50/50.
Shenyang Rails will receive about 20% of total profits in exchange for
giving Samik/Dalian the exclusive rights to use its railroads.
This non-passenger rail will go through Dalian, Changchun, Jilin and Y
anji. This joint venture will run inland transportation and an inland
container yard. It will also offer logistic information and an e-comme
rce service.
Given its strong background, Samik Logistics will be leading the joint
venture.
On Sep. 6th, Samik logistics, Dalian Port Authority and Shenyang Rails
had a signing ceremony for investment on "Dalian Ji Yi Logistics. Ltd
" in Dalian.
With this investment, the Dalian Port Authority will expect to increas
e import and export cargoes with the help of smooth transportation of
cargoes in China. Shenyang Rails will enhance their cargo carrying in
the area. Samik Logistic will establish a bridgehead for marching into
the China main land with their foundation of rail transportation in K
orea.