(Yicai Global) May 14 – China's Jiayou International Logistics Co. will invest USD5 million to establish a wholly-owned subsidiary in Singapore to expand its overseas markets, particularly in Southeast Asia and Africa.
The company board gave on May 11 its approval for setting up the subsidiary, said a statement from the Beijing-based regional cross-border logistics management company yesterday. The new subsidiary will engage in the international multimodal transport supply chain management business covering minerals and energy, the statement added.
International multimodal transport refers to the transportation of goods under a single contract but performed with at least two different forms of transport from a place in one country to a place designated for delivery in another country, according to the Article 1.1 of the United Nations Convention on International Multimodal Transport of Goods, which has yet to come into force.
Jiayou said it will make full use of the opportunities brought about by the Belt and Road Initiative, a grand plan for a vast infrastructure and trade route boasting a major network of railroads, highways, ports and pipelines embracing the continents of Asia, Europe and Africa.
The company's decision will also help meet the business demand of its customers in Southeast Asia and consolidate Singapore's position as one of Asia's major shipping and financial centers, it added.
Editor: Mevlut Katik