A.P. Moller-Maersk A/S, the world’s second largest container carrier, signed an agreement with Vietnamese conglomerate Hateco to develop a railway freight terminal network in Vietnam during President To Lam’s official visit to Denmark.

APM Terminals, the port operating unit of A.P. Moller-Maersk, inked a memorandum of understanding with Hateco in Copenhagen on October 27 to develop a container terminal system, according to a statement from Hateco. The deal takes the total estimated investment in supply chain infrastructure projects in Vietnam by the companies to $2.5 billion to $3.5 billion.

The proposed network, which will include a rail freight terminal in Haiphong and three container facilities across northern provinces, “aims to connect industrial parks, logistics hubs and production zones with major transport hubs,” it said. 

President Lam also met other business leaders in the Danish capital, including executives from Lego Group, Carlsberg and Pandora, as Vietnam seeks to attract more investment, technology and expertise, according to the government website. Lam will then travel to Brussels for talks with European Union officials expected to cover trade, energy and education.

The container project comes as Vietnam ramps up infrastructure investment to support its multiyear double-digit economic growth target, seeking to boost spending to attract private capital and spur development. The Southeast Asian nation is pouring billions of dollars into upgrading its transport and logistics networks, with railways seen as a key priority.

Maersk has already partnered with Hateco on a $400 million container port project in Haiphong, according to the Vietnamese company. The Danish shipping giant is also expanding its investment in some joint projects, including the Lien Chieu container terminal port in Danang. 

The planned rail freight facilities, which will use digital technology to enhance cargo handling and storage while connecting to seaports and rail infrastructure, are expected to ease road congestion and expand options for cross-border shipments, according to the statement.