CITIC Capital invests China-Europe logistics providers

The investments include freight services player Shanghai Railink International Intermodal Logistics and Atasu Group, which operates across rail, auto, air, sea shipments. CITIC aims to leverage the expertise of both companies to develop overland logistics services as part of an OBOR project known as Railway Express.

"The migration of production capacity from China's coastal to inland regions, increasing demand from pan-Eurasian countries, as well as the rapid growth in the China-Europe rail cargo volume have together provided tremendous investment opportunities from both ends," Fanglu Wang, managing partner of CITIC Capital Silk Road Fund, said in a statement. "We will keep watching this space."

Railink is expected to expand its geographic footprint as a result of the investment. The company, which currently operates a network in western and central China, provides cargo transport and customized end-to-end services to multinational logistics players including DB Schenker, DSV, and Geodis.

Atasu focuses on the fast-moving consumer goods sector with clients across China, Southeast Asia, Europe, and the states of the former Soviet Union. The company owns a number of storage terminals and transshipment facilities in Kazakhstan. In conjunction with the investment by CITIC, it received long-term debt financing from the European Bank of Reconstruction and Development.

CITIC Capital Silk Road Fund is targeting up to $600 million for a portfolio envisioned to be split about 20% in China, 70% in other OBOR countries and 10% across the rest of the world.  In addition to transport and logistics, sectors of interest include energy generation and related utilities, as well as food and water safety.

Recent activity includes participation in a $21 million Series D round for Organica Water, a US-based environmental infrastructure company with extensive operations in Asia. Last month, the fund also made a $150 million commitment to Arctic Green Energy, an Iceland-based company that is bringing geothermal power technology to China. 

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• Topics
• Greater China
• Europe
• Central Asia
• Infrastructure
• Expansion
• Industrials
• China
• CITIC Capital
• Transportation
• Logistics
• One Belt One Road