CITIC Capital said May 29 that it invested in Shanghai Railink International Intermodal Logistics and Atasu Group. Financial terms weren’t announced. Shanghai Railink provides railway freight transport services linking clients between Europe and China. Atasu is a private logistics company in Kazakhstan.
CITIC Capital Silk Road Fund Completes Investments into Leading Pan-Eurasian Logistics Service Providers
(Hong Kong, 29 May 2018) CITIC Capital Silk Road Fund (“CCSRF”), a pan-Eurasia themed fund managed by CITIC Capital Holdings Limited, is pleased to announce that it has recently completed its investments into Shanghai Railink International Intermodal Logistics (“Railink”), and Atasu Group (“Atasu”) respectively. Both Railink and Atasu are emerging leaders in the logistics services sector, benefiting from the rapid growth in trades between China and Europe, via Central Asia and Kazakhstan.
CCSRF’s investments will support further development of logistics service networks, as well as capex needs for both companies. In addition to CCSRF’s investment, Atasu also receives long-term debt financing from the European Bank of Reconstruction and Development.
Railink and Atasu provide complementary services to clients based across China, Central Asia, and Europe, all of which are key regions under China’s Railway Express development project. CCSRF’s investments seek to unlock further synergies between both businesses, leveraging each company’s strengths in its respective markets, providing clients with a more comprehensive suite of services.
Fanglu WANG, Managing Partner of CCSRF, noted that: “CITIC Capital has been an early mover seeking to unlock the synergies between China and its trading neighbors. The transport and logistics service sector is a key element in regional commercial exchange. The migration of production capacity from China’s coastal to inland regions, increasing demand from panEurasian countries, as well as the rapid growth in the China-Europe rail cargo volume have together provided tremendous investment opportunities from both ends, we will keep watching this space. ”
Richie LIU, Railink’s Co-founder and CEO, expressed his excitement to be working with CCSRF, which he believes will be able to provide additional strategic support as the company expands its geographic footprint, with leverage on CITIC’s expertise in the sector.
Marrat ZHUMAN, President of Atasu, welcomes the strategic partnership, stating CITIC Capital’s investment as “a milestone for the company, helping it meet growing demand and higher standards from domestic and international clients, strengthen its competitiveness, and increase Kazakhstan’s export potential under the Nurly Zhol state infrastructure development program. ”
About CITIC Capital Silk Road Fund
CITIC Capital Silk Road Fund is a pan-Eurasia themed fund managed by CITIC Capital Holdings Limited (“CITIC Capital”) with a focus on energy & resources efficiency, food & water safety, and transport & logistics services. As a leading player in the Central Asia region since 2010, CCSRF is now targeting broader markets in the CIS region, as well as Eastern Europe and Southeast Asia. The fund is sponsored by CITIC Group as a cornerstone investor, one of China’s largest state-owned multinational conglomerates. CITIC Group ranked 172nd on the Fortune Global 500 in 2017.
Founded in 2002, CITIC Capital is an alternative investment management and advisory company. The firm manages over USD 22 billion of capital across 100 funds and investment products through its multi-asset class platform covering private equity, real estate, structured investment & finance, and asset management. CITIC Capital has over 150 portfolio companies that span 11 sectors and employ over 820,000 people around the world.
For more information about CITIC Capital, please visit: www.citiccapital.com
About Shanghai Railink International Intermodal Logistics
The company provides top-tier railway freight transport services linking clients between Europe and China. With the continuous growth of cargo transport demand between these two regions in recent years, the company established its service network in Western and Central China, mainly serving leading multinational logistics companies, including DB Schenker, DSV, Geodis, and others. As the company further integrates its overseas network, it continues to provide tailored end-to-end international logistics services.
For more information about the company, please visit: www.railink.com.cn
About Atasu Group
Atasu Group, founded in 1998, is a dynamically developing private logistics company in Kazakhstan. Atasu Group covers the whole range of logistics services including railway, auto, air, and sea shipments, serving local and multinational companies mainly in the FMCG sector. The company provides logistics services for both domestic and export destinations, with increasing demand from clients in China, Southeast Asia, the CIS, and Europe. Atasu Group also owns several storage terminals and transshipment centers in Kazakhstan, enabling it to provide one-stop service for all of its clients’ needs. For more information about Atasu Group, please visit: www.atasu.kz