Benzinga | Mar 1, 2021 09:17AM EST

MingZhu Logistics Announces Cooperation Agreement With China Merchants Logistics Group Urumqi Limited To 'provide an exclusive, crucial link between the first and last mile between slack coal mines and essential railroads'; Financial Terms Not Disclosed

SHENZHEN, China, March 1, 2021 /PRNewswire/ -- MingZhu Logistics Holdings Limited ("MingZhu" or the "Company") (NASDAQ:YGMZ), a leading trucking service provider, announced a major cooperation agreement with Sinotrans Logistics Limited's wholly owned subsidiary, China Merchants Logistics Group Urumqi Limited ("China Merchants"). The cooperation agreement is designed to provide an exclusive, crucial link between the first and last mile between slack coal mines and essential railroads.

Under the cooperation agreement, MingZhu will be responsible for the logistics and timely container transport of slack coal linking mines with essential railroad transportation. The companies expect the higher efficiency, lower cost intermodal transport services model will set a new standard for future transport. The cooperation agreement will initially focus on serving Xinjiang's fast growing slack coal market, with total market volume expected to grow from 72.3 million tons in 2018 to 87.7 million tons by the end of 2021 (Source: Frost & Sullivan Analysis). Xinjiang occupies a preeminent position as one of the core transportation hubs of the One Belt One Road and serves as a strategic gateway.

Mr. Jinlong Yang, Chairman and Chief Executive Officer of MingZhu Logistics Holdings Limited, commented, "This is a very exciting development in the continued evolution of our company, one that we expect will drive accelerated business growth over the coming years. We are pairing our strong track record of reliable transportation with China Merchants, one of China's oldest and biggest companies, in an exclusive cooperation to initially solve the first and last mile of slack coal transport. With the combination of increased regional infrastructure investments and rapid demand growth, we expect this agreement to be the start of an even more significant, long-term, mutually beneficial cooperation. We are fully committed to expanding our capacity through organic growth and accretive acquisitions in order to serve the overall higher expected demand."