CIO Logistics Provider Profile

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The following is a compilation of logistics providers’ profiles collated from the CIO database and assorted reports compiled between 2007 and 2008.

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CIO Logistics Provider Profile

  1. 1. Logistics Providers Profiles Selected profiles from the CIO database – collated between 2007-8 China Intelligence Online Informing business in China
  2. 2. www.chinaintelligenceonline.com 1 Table of Contents 1 TABLE OF CONTENTS ............................................................................................................2 2 INTRODUCTION ...................................................................................................................4 3 CHINA INTELLIGENCE ONLINE ...............................................................................................4 4 AIR CARGO CARRIER PROFILES .............................................................................................5 4.1 AIR CHINA ..............................................................................................................................5 4.2 AIR CHINA CARGO ....................................................................................................................6 4.3 CHINA EASTERN .......................................................................................................................6 4.4 CHINA CARGO .........................................................................................................................7 4.5 CHINA SOUTHERN AIRLINES ........................................................................................................8 4.6 CATHAY PACIFIC (HONG KONG)....................................................................................................9 4.7 DRAGONAIR (HONG KONG) ...................................................................................................... 10 4.8 JADE CARGO ......................................................................................................................... 11 4.9 YANGTZE RIVER EXPRESS .......................................................................................................... 12 4.10 SHANGHAI AIRLINES CARGO ..................................................................................................... 12 4.11 GREAT WALL CARGO ............................................................................................................... 13 5 SHIPPING COMPANIES........................................................................................................ 14 5.1 COSCO ............................................................................................................................... 14 5.2 OOCL ................................................................................................................................. 15 5.3 NEPTUNE ORIENT LINES/ APL ................................................................................................... 16 5.4 OTHER SHIPPING COMPANIES .................................................................................................... 17 6 RAIL FREIGHT COMPANIES.................................................................................................. 19 6.1 COMPANY PROFILES: DOMESTIC 3PLS ......................................................................................... 19 6.1.1 SINOTRANS ................................................................................................................................... 19 6.1.2 COSCO LOGISTICS ......................................................................................................................... 22 6.1.3 PG LOGISTICS................................................................................................................................ 24 6.1.4 CHIC LOGISTICS ............................................................................................................................. 24 6.1.5 TEMPUS LOGISTICS......................................................................................................................... 25 6.1.6 FOTON LOGISTICS......................................................................................................................... 26 6.1.7 KERRY EAS ................................................................................................................................... 27 6.1.8 DATIAN W GROUP (DTW)/FEDEX ................................................................................................... 30 6.1.9 GUANGZHOU HYC LOGISTICS .......................................................................................................... 31 6.1.10 OTHER PLAYERS ........................................................................................................................... 33 6.2 FOREIGN LOGISTICS OPERATORS ................................................................................................. 34 6.2.1 NIPPON EXPRESS ........................................................................................................................... 34 6.2.2 KINTETSU WORLD EXPRESS (KWE)................................................................................................... 35 6.2.3 DPWN/DHL ................................................................................................................................ 35 6.2.4 EXEL-DHL .................................................................................................................................... 36 6.2.5 FORMER TIBBETT & BRITTEN ........................................................................................................... 39 6.2.6 KUEHNE + NAGEL (K+N)................................................................................................................. 41 6.2.7 EXPEDITORS .................................................................................................................................. 42 6.2.8 NYK LOGISTICS.............................................................................................................................. 43 6.2.9 DB LOGISTICS................................................................................................................................ 45 6.2.10 MAERSK LOGISTICS ...................................................................................................................... 46 6.2.11 BLG .......................................................................................................................................... 46 6.2.12 BALTRANS .................................................................................................................................. 48 6.2.13 CATERPILLAR LOGISTICS SERVICES ................................................................................................... 50 6.2.14 UPS SCS .................................................................................................................................... 50 6.2.15 DSV DFDS ................................................................................................................................. 51 6.2.16 YRC WORLDWIDE........................................................................................................................ 51 6.2.17 OOCL LOGISTICS ......................................................................................................................... 52 Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 2
  3. 3. www.chinaintelligenceonline.com 7 EXPRESS COMPANY PROFILES ............................................................................................. 53 7.1 FEDEX ................................................................................................................................. 53 7.2 TNT EXPRESS ........................................................................................................................ 56 7.3 UPS ................................................................................................................................... 59 7.4 DHL-SINOTRANS ................................................................................................................... 62 7.5 CHINA POST EXPRESS MAIL SERVICE (EMS) ................................................................................. 67 7.6 CHINA AIR EXPRESS ................................................................................................................ 68 7.7 CHINA RAIL EXPRESS ............................................................................................................... 68 7.8 KEAS INTERNATIONAL ............................................................................................................. 71 7.9 BEIJING ZJS EXPRESS .............................................................................................................. 71 7.10 JIAIJI (CNEX EXPRESS) ............................................................................................................ 72 7.11 S.F. EXPRESS ......................................................................................................................... 73 8 DISCLAIMER ....................................................................................................................... 75 Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 3
  4. 4. www.chinaintelligenceonline.com 2 Introduction The following is a compilation of logistics providers’ profiles collated from the CIO database and assorted reports compiled between 2007 and 2008. 3 China Intelligence Online China Intelligence Online gathers business intelligence and provides analysis as well as general business services for international organisations working or interested in the Greater China and East Asia markets. Business services include company establishment, customised research, sales and marketing, and client representation. Our researchers and analysts collectively have decades of experience on the ground in Mainland China, both living and working; not just in the developed east, but throughout the vast hinterland that represents the real opportunities in the coming decades. In addition, all our researches and analysts, Western and Chinese, are fluent and literate in both Mandarin Chinese and English. Previous clients have included the Terminal Options Conference (TOC), Transport Intelligence, Airline Cargo Management, Informa Subsidiaries such as Cargo Systems and International Freighting Weekly, among others. For more information contact: info@chinaintelligenceonline.com Or visit: www.chinaintelligenceonline.com Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 4
  5. 5. www.chinaintelligenceonline.com 4 Air cargo carrier profiles 4.1 Air China Air China Ltd. is a provider of air passenger, air cargo and airline related services in China. The Company has a network of domestic and international routes serving approximately 70 domestic and 36 international destinations. The Company operates in four segments: the airline operations segment, which comprises the provision of air passenger and air cargo services; the engineering services segment; the airport terminal services segment and the others segment, which comprises the provision of air catering services and other airline- related services. Formerly the Beijing-based international carrier division of the CAAC (Civil Aviation Administration of China), it was re-named in 1988, when the Government decided to form the operating divisions of CAAC into separate airlines, each with its own name. In October 2002, Air China consolidated with China National Aviation Company and China Southwest Airlines. Based on the combined air transport resources of the three companies, the new Air China Company was founded. In December 2004, Air China was listed on the Hong Kong and London stock exchanges. Air China and Air China Cargo operate a fleet of 212 aircraft in total with an average age of 7.9 years. Of these it owns 107 and leases 105. It has a total of nine freighter aircraft, six owned and three leased. Agreements have been signed with Airbus and Boeing for the purchase of further aircraft between 2007 and 2010. In 2006 Air China signed an agreement with Boeing for the purchase of 15 B737-800 aircraft and with Airbus for the purchase of 24 A321 aircraft. In 2007 Air China had revenues of CNY 51.3bn, with cargo revenues of CNY 4.1bn Air China: Financial Overview year 2007 (CNY) Financial Highlights 2007 Operating Revenue CNY 51,330m Operating Profit CNY 3.834m Operational Data Cargo 1,104m tonnes Source: Air China Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 5
  6. 6. www.chinaintelligenceonline.com 4.2 Air China Cargo Air China Cargo is a joint venture between Air China, CITIC Pacific and China Airport Holding founded in 2003. The joint venture is controlled by Air China with a 51% equity stake, the other two companies having 25% and 24% respectively. The company is both an operator of air freighters and a marketing organisation for Air China’s belly freight capacity. The company is predominantly a domestic carrier but has a developing international route structure to Europe and North America. With 1,818 employees, Air Cargo China operates dedicated cargo flights on routes from Shanghai and Beijing to five major US cities, as well as Frankfurt, London, and Paris. The airline also manages cargo services flown over a comprehensive route network in the cargo holds of around 60 Air China passenger aircraft. The dedicated cargo fleet consists of 3 Boeing 747-200F, 5 Boeing 747-400F, and 5 Tupolev Tu-204-120CE freighters. In 2007, Air China Cargo capacity and the belly-hold space in its parent company’s passenger aircraft increased by 12.30% the previous year to 3,690m RFTKs. Cargo and mail carried increased by 10.60% to 934,000 tonnes while cargo and mail load factor increased by 2.1% to reach 55.80%. Available freight tonne-km increased by 8.20% to 6,620m and cargo yield per tonne-km decreased by 7.20% to CNY 1.80. 4.3 China Eastern China Eastern Airlines was incorporated on the 14th April 1995 when it was split off from CAAC. The company and its subsidiaries are engaged in aviation operations for passenger services, cargo, and mail delivery, and other extended transport services. China Eastern currently serves 138 domestic and foreign cities with 467 routes, of which 351 were domestic routes, 18 were Hong Kong routes (including one cargo route) and 98 were international routes (including 14 international cargo routes) China Cargo Airlines (CCA) was jointly founded by China Eastern Airlines and COSCO Group on July 30th 1998, and became the first specialized air cargo company in China. China Eastern owns a 70% share of CCA and COSCO holds 30%. With its operating bases located in Shanghai Hongqiao Airport and Shanghai Pudong International Airport, China Cargo Airlines provides cargo air services to major cities in China including Beijing, Qingdao, Xiamen . and over 10 international destinations including London, New York, Financial Overview 2007 (CNY) Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 6
  7. 7. www.chinaintelligenceonline.com 2005 2006 2007 Revenue passenger-km (ms) 36,380.6 50,271.9 57,182.6 Revenue tonne-km (ms) 5,395.2 6,931.0 7,713.9 Revenue passenger tonne- 3,243.7 4,487.0 5,099.8 km (ms) Revenue freight tonne-km 2,151.5 2,444.0 2,614.1 (ms) Cargo yield (cargo 2.31 2.3 2.1 revenue/cargo tonne-km) Cargo and Mail Traffic 3,114 2,731 2,843 Revenues (CNY m) Cargo and Mail Total 3,552 3,306 4,015 Revenues Source: China Eastern Source: China Eastern Airlines At the end of 2007, China Eastern operated 197 passenger planes and 11 jet freighters. In the same year, the Company added a total of 20 aircraft to its fleet, including the purchase of three EMB145 aircraft and the finance lease of two A319 aircraft, two A320 aircraft, four A321 aircraft, one A330-200 aircraft, five A330-300 aircraft, two B737-700 aircraft and one B747F freighter. The company took delivery of the third of three A300-600 converted Freighters from EADS. It currently operates 220 planes and plans to expand the fleet to 322 in 2010. In terms of its passenger network, the company introduced a number of new routes in 2007 including Shanghai-Maldives-Johannesburg, Hongqiao-Haneda, Beijing-Dalian-Okayama, Shanghai-Seoul-Bangkok, and Hongqiao-Gimpo. Also, China Eastern has been assigned by the Shanghai 2010 World Expo as the only designated air carrier. 4.4 China Cargo In July 1998, China Eastern and China Ocean Shipping (Group) Company jointly established China Cargo Airlines to specialise in the air freight business. The total investment in the joint venture was approximately CNY 350m, representing 70% of the equity interest of China Cargo Airlines. In 2005, it established sales centres for cargo services in northern China, southern China, south-eastern China, and overseas. The company has domestic cargo sales offices in Beijing, Shanghai, Xiamen and other major transport hubs in China, and international cargo sales offices in Hong Kong, London, Tokyo, Osaka, Nagoya, Seoul, Los Angeles, Dallas, Seattle, Chicago, San Francisco, New York, Anchorage, Paris, Luxembourg and other overseas flight destinations. China Cargo Airlines maintains 27 cargo routes with dedicated freight aircraft as well as cargo space on China Eastern's passenger aircraft. Their most significant cargo and mail routes are international. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 7
  8. 8. www.chinaintelligenceonline.com 4.5 China Southern Airlines China Southern Airlines is China's largest airline company in terms of its owned fleet, route network, and annual passenger transport volume. It provides passenger transport, and cargo and postal services in Mainland China, Hong Kong, Macao, and international destinations. From its hubs in Guangzhou and Beijing, the company's network includes: 841 destinations in 162 countries in Asia, Europe, America, Australia, and Africa. The cargo division was established on November 20th 2001. Unlike its two big competitors Air China and China Eastern, China Southern does not have a separated cargo subsidiary. In 2005, the company was the first to land a mainland plane in Taiwan in 56 years. Financial Overview 2005 2006 2007 Revenues(m Yuan) 38293 46219 54502 Profits (m Yuan) - 1, 305 645 1619 Cargo and Mail CNY (m) 3,538 3,697 Source: China Southern Airlines In 2007, the company's operating revenue increased by CNY 8,283m to reach CNY 54,502m, a year-on-year increase of 17.9%. For the same period, operating expenses increased from CNY 45,907m in 2006 to CNY 53,013m in 2007. As a result of improved passenger load factor and average yield, operating profit was increased from CNY 645m in 2006 to CNY 1,619m in 2007. The Group’s net non-operating income was CNY 1,304m as compared to net non-operating expenses of CNY 288m in 2006. In 2007, cargo and mail revenue accounted for 6.9% of the companies total traffic revenue. It reached an increase of 4.5% over the previous year to reach CNY 3,697m. In the first half of 2008, cargo and mail revenue was CNY 1,851m, an increase of 9.3% from the same period last year. Cargo and mail revenue accounted for 7.1% of total traffic revenue. On 14 August 2007, the company acquired a 51% equity interest in Nan Lung International Freight from its parent company CSAHC for CNY 58m. In 2007, China Southern opened 10 international routes originating in Guangzhou and 8 domestic routes originating in Beijing. These 10 international routes serve neighbouring countries in Southeast Asia including Sendai, Rangoon, Angkor Wat, and others. In September 2008, according to CAAC's 2008-2009 Long-distance International Routes Preliminary Distribution Plan, China Southern gained the approval to open Beijing-London, Beijing-New York and Beijing-Detroit routes. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 8
  9. 9. www.chinaintelligenceonline.com The Company now has 45,474 employees and a fleet of 332 aircraft, including Boeing 737, 747, 757, 777 series, Airbus 320, 300,330 series, MD 82 and 90 series. At present, China Southern Airlines has two B747-400 active-duty full-cargo aircraft, six A300 aircraft are under cargo aircraft conversion. The company also booked 6 B777 full-cargo aircraft from Boeing, which will be delivered sometime between November 2008 and July 2010. 4.6 Cathay Pacific (Hong Kong) Cathay Pacific Airways is an international airline based in Hong Kong. So far it is not been classed by the Beijing authorities as ‘Chinese’, therefore having only limited access to international routes into China and no domestic routes around China or from Hong Kong into China. Cathay Pacific although based in Hong Kong, is in large part owned by UK investors (Swire Group) and this counted against it in terms of access. This has changed dramatically as Cathay Pacific has been permitted to purchase Dragonair by the Beijing authorities in exchange for a 37.5% holding in Cathay by Chinese government investors in the form of Air China and CITIC. Cathay Pacific will also become a shareholder in Air China. Through Dragonair, Cathay now has a first class airfreight network throughout China linked into Cathay’s powerful global network of airfreight services. This has made Cathay the leading airline in the region, with a position in cargo which could be approaching dominance. Cathay bases itself around Hong Kong International Airport and owns a share of Hong Kong International Air Cargo Terminal (HACTL). Dragonair is also based at Hong Kong and therefore the two airlines will use the airport as a hub for both passenger and freight. It is unclear what impact this will have on Hong Kong as a cargo airport. On the one hand it is likely to improve volumes as Cathay/Dragonair becomes dominant in such a fast growing market. This will be useful in fighting competition from airports such as Shenzhen in mainland China. However the management of HACTL has criticised what appears to be a monopoly position for Cathay in Hong Kong and suggests that this could have deleterious effects on the development of the airport. Cathay Pacific is also a major shareholder in AHK Air Hong Kong Limited, an all cargo carrier that offers scheduled services in the Asia region. DHL is also a shareholder, holding 40%. Cathay Pacific is the founding member of the Oneworld global alliance, whose combined network serves over 570 destinations worldwide. Cathay Pacific Airways has added the cities of Hanoi in Vietnam and Dhaka in Bangladesh to its freighter network. The new flights are operated by a B747-200F flying on a Hong Kong - Hanoi – Dhaka – Hong Kong routing every Tuesday and Thursday. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 9
  10. 10. www.chinaintelligenceonline.com Financial Overview 2005 2006 2007 Revenue (CNY m) 50909.00 60783.00 75358.00 Operating Profit (CNY m) 4143.00 5218.00 Margin 8.14% 8.58% Source: Cathay Pacific Cathay Pacific plans to continue to build its freighter network and strengthen existing services in 2008. The airline has increased its freighter services to Dallas and Atlanta in the United States and Mumbai and Delhi in India. More new destinations are in the pipeline for later in the year. With the addition of Hanoi and Dhaka, Cathay Pacific and its sister carrier Dragonair together carry cargo to a total of 80 destinations in Asia, the Middle East, Australasia, Europe and North America. The airlines' freighters serve 34 destinations. Cathay Pacific also continues to grow its wide-body freighter fleet and from May took delivery of the first of six new Boeing 747-400ERF “Extended Range Freighters”. It also has 10 of the advanced, fuel-efficient Boeing 747-8F freighters on firm order with delivery commencing in 2009. At the same time Cathay Pacific and Dragonair began a phased withdrawal of their older Boeing 747-200F/300F “Classic” freighters starting from the end of March. Cathay Pacific also plans to design, construct and operate a new cargo terminal at Hong Kong International Airport. Work on the project, to be operated under a 20 year franchise, has already began with a scheduled opening date of 2011. It would have an annual throughput capacity of 2.6 m tonnes 4.7 Dragonair (Hong Kong) Dragonair was founded in Hong Kong 1985 and serves 30 destinations across Asia. The cargo service extends to cities in Europe, the Middle East, Japan, Southeast Asia and China Mainland. Dragonair Cargo was first owned by Cathay Pacific, Swire Group, CITIC and the Chao Family in 1990 and then became a wholly-owned subsidiary of Cathay Pacific in September 2006. Dragonair Cargo now has grown into a large air cargo transportation provider with three Boeing 747-300 freighters, one Boeing 747-200 freighter and two 747-400 Boeing Converted Freighters, carrying a total of 395,384 tonnes of cargo in 2006, a 2.6% increase over 2005. Dragonair code shares with Air China on flights between Hong Kong and mainland China (particularly Beijing), Royal Brunei on flights between Hong Kong and Bandar Seri Begawan and China Southern Airlines between Hong Kong and Guangzhou. Malaysian Airlines is another partner code sharing with Dragonair, on routes to Kota Kinabalu. The current sole Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 10
  11. 11. www.chinaintelligenceonline.com shareholder of Dragonair, Cathay Pacific, has recently put on its 'CX 68--' code on Dragonair flights to Xiamen, Shanghai, Beijing, Tokyo, Phuket, Fukuoka, Sendai and Busan. Since its inception in 2000, Dragonair Cargo rapidly grown its operations by offering scheduled freighter services between Japan, Mainland China and Taiwan from Hong Kong; and regular flights to destinations such as Osaka (six flights/week), Taipei (five flights/week), Shanghai (seven flights/week, including three co-terminal services to Xiaman). Dragonair Cargo also operates wet-lease service for partnering airline—Cathay Pacific. By the end of 2008, four more 747-400 Boeing Converted Freighters will be delivered to Dragonair Cargo. 4.8 Jade Cargo Jade Cargo International Company Ltd. was founded in October 2004 as a joint venture between Shenzhen Airlines (51%), as the majority partner, and Lufthansa Cargo AG (25%) and the German development finance institute DEG (24%). Their headquarters is located in Pearl River Delta City of Shenzhen on the other side of the Chinese border from Hong Kong. The company has rapidly expanded its operations since its founding. It began flights after Chinese New Year 2005 with two Airbus A300-600 freighters that initially served intra-Asian routes to countries such as India, Malaysia, Singapore and Thailand. With the delivery of its final plane on order from Boeing in 2008, the company now operates a fleet of six Boeing 747-400ERFs, which offer services to destinations throughout Europe and Asia. At the end of 2007, it offered services to Amsterdam, Barcelona, Brescia, Frankfurt, Luxembourg and Stockholm from Shenzhen and Shanghai's Pudong airport; and from Shenzhen to Osaka and Seoul. In 2008, it began offering services to Frankfurt, bi-weekly flights from Shenzhen to Budapest and Manchester, and tri-weekly Shanghai-Brescia- Barcelona service. The company recently launched a route to Vietnam on a charter basis with plans for regularly scheduled service. The service leaves from Tianjin then flies to Ho Chi Minh City and on to Shenzhen. It also has plans for an India route, which will make a circuit from Shenzhen to Shanghai to Chennai, then return to Shenzhen. The company plans to keep its hub in Shenzhen with an eye on improving connections with Europe rather than focusing on North America or the domestic market. It had planned to launch services to Houston via Vancouver, but turned its focus to Europe after the economic downturn in the US. As of January 2007, the company had completed 148m tonne-km of air cargo turnover. Half way through the year it had already seen 67% growth in its air freight business and by the end of the year it had a turnover of upwards 50,000 tonnes in international air cargo at Shenzhen Airport, nearly half of the airports total volume for the year. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 11
  12. 12. www.chinaintelligenceonline.com The airline currently has roughly 393 employees and operates a fleet of six Boeing 747- 400ERF (Extended Range Freighter) to locations in Asia and Europe. 4.9 Yangtze River Express In 2004, Yangtze River Express launched international routes to Asian, European and American cities. The company currently operates 70 domestic and international routes with over 120 flights per week, to numerous domestic and international destinations such as Singapore, Seoul, Philippines, Dhaka, Bangkok, US, Frankfurt, and Luxemburg. The company also offers freight forwarding, customs clearance, express delivery, and logistics consultancy services. It has also developed in-house supply chain modelling for its logistic centres and warehouses in Beijing, Tianjin, Shanghai, Xi’an, and Shenzhen. From its base in Shanghai, the company currently operates six Boeing 737-300 and one Boeing 747-400F and utilizes cargo compartments of 100 aircraft from six other airlines linked with Hainan Air. According the company, its combined cargo capacity reached 700 tonnes. Its fleet is equipped to carry electronic, express delivery items, large equipment, live animals, and dangerous goods including flammables, explosives, toxic substances, infectious items, corrosives and radioactive materials. Its network has grown to include routes to 70 domestic and 10 international routes, offering 120 flights per week, covering 20 major Chinese cities and international destinations such as Singapore, Seoul, Manila, Dhaka, Bangkok, Boston, New York, Los Angeles, Moscow, Frankfurt, and Luxemburg. In June 2008, Yangtze River Express applied to CAAC for the opening of a cargo route from Shanghai Pudong-Seoul-Tianjin-Seoul-Nanjing-Shanghai Pudong with B737-300 and six flights a week. In Europe, the company offers connecting truck services from Luxemburg to: Brussels, Antwerp, Cologne, Dusseldorf, Frankfurt, Lille, Maastricht, Stuttgart, Munster, Hanover, Bremen, Hamburg, Munich, Nuremberg, Basel, Amsterdam, Zurich, Lyon, London, Milan, Copenhagen, Barcelona, Madrid, Magdeburg, Malmo, Oslo, Stockholm, and Helsinki. In America it offers trucking services on the west coast from LAX to: Phoenix, San Diego, San Francisco, Denver, El Paso, Las Vegas, Portland, Reno, Seattle, Salt Lake City, Houston, Austin, Laredo, Chicago, San Antonio, Vancouver, Edmonton, Calgary. On the west coast of the US it offers services from JFK to: Baltimore, Boston, Harrisburg, Newark Airport, Philadelphia, Providence, Norfolk Airport, Richmond, Washington, DC, Hartford, Camden, Montreal, Toronto, Cincinnati, Columbus, Pittsburgh, list, Miami, Charlotte, Cleveland, and Atlanta. 4.10 Shanghai Airlines Cargo The general business scope of Shanghai Airlines Cargo includes: scheduled and chartered air freight, post, parcels, and express delivery for both international and domestic markets. It is a joint-venture between Shanghai Airlines (55%), Concord Pacific Limited (25%), and Juniper Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 12
  13. 13. www.chinaintelligenceonline.com Estate B.V.(20%). It has registered capital of CNY 206m and is approved by the CAAC for international and domestic cargo. To meet increasing demand, in 2005, the company established a second cargo station beside Runway 2 of Pudong Airport. This station covers an area of 32,200 sq metres, with an annual capacity of 150,000 tonnes, and is equipped with X-ray machines, a refrigerated storage centre and parking lot for trucks. Additionally, the company plans to acquire around 200,000 sq metres near runway 3 for a cargo transport centre. According to the airport administration, cargo runway 3 will be operable in 2008 providing adjacent logistics centres. As of May 2008, it owned a fleet of four MD11F, two B757-200SF, and one B747-200F (leased). By the year 2010, it has plans to expand its fleet to ten freighters. By the year 2010, the fleet is expected to be expanded to ten large freighters. The company now operates cargo routes from Shanghai to international destinations such as America, Germany, Thailand, Japan, India, Vietnam, Hong Kong, Los Angeles, Chicago, Frankfurt, Singapore, Ho Chi Minh, Bombay, Anchorage, and Osaka. 4.11 Great Wall Cargo Great Wall Airlines began operation on June 22nd 2006. Yet, less than a month later, the airline ceased operations after the US imposed sanctions on China Great Wall Industry Corporation (GWIC), the parent company, for supplying missile related components to the Iranian military. Early the following year, the airline began service again and now flies to two domestic and seven international locations. Great Wall Airlines is currently a joint venture between Beijing Aerospace Satellite Application Corporation (BASA) (51%), a fully-owned subsidiary of China Aerospace Science & Technology Corporation (CASC), Singapore Airlines Cargo (25%), and Dahlia Investments (24%), a wholly-owned subsidiary of Temasek Holdings. Although headquartered in Beijing, the company operates its fleet of three B747-400 freighters from Shanghai Pudong. The fleet of planes is roughly 11 years old and the company has a seven-year fleet management program agreement with Pratt & Whitney Global Service Partners to service the planes. From its hub at Shanghai's Pudong International Airport, they offer dedicated freighter services, connecting China to Europe and Asia. It currently offers weekly flight services to Tianjin, Beijing, Amsterdam, Incheon, Mumbai, Chennai, Manchester, Seattle and Chicago. In 2007, after the US State Department lifted its sanctions, the company offered services to Amsterdam, Incheon, and Mumbai/Chennai. In March of this year, it began providing services from Shanghai to Amsterdam via Tianjin five times per week and to Manchester via Tianjin and Amsterdam twice per week. In June, it began operating a Shanghai-Incheon- Seattle-Chicago route and plans to increase the frequency to six times a week beginning September 4th of this year. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 13
  14. 14. www.chinaintelligenceonline.com 5 Shipping Companies International or inter-continental ship movements are fundamental to China’s economy. Short sea is also important as the growth of ports has preceded that of road transport. The location of so much of China’s economy on coastal and river locations strengthens the competitiveness of short sea freight. Whereas short sea traffic is much more fragmented, deep sea is largely in the hands of the big global container shipping companies, a fact strengthened by the size of the Asia Pacific shipping fleets. Companies that are essentially state-owned and/or run are:  COSCO (China Ocean Shipping Company)  China Shipping (Group) Company Of the private companies these are:  Evergreen based in Taiwan  Neptune Orient Lines/American President Lines which is based in Singapore  Oriental Ocean Container Lines which is based in Hong Kong Of course all of the other major container lines and other trade lines have a strong presence in China. However the importance of shipping to China’s economy ensures substantial competition in the sector. 5.1 COSCO COSCO (China Ocean Shipping Company) is the largest of China’s state-owned shipping interests. As a company it has evolved out of the Chinese state-run shipping line into an organisation with many commercial characteristics. Indeed it is probably more accurate to describe it as a commercial shipping company with state organisations as the sole shareholders. In keeping with the regional nature of the Chinese economy these appear to be heavily orientated towards southern China and Guangzhou, than the central government in Beijing. COSCO has a number of subsidiaries around the world, some of which are quoted companies, for example in Singapore and Hong Kong. COSCO also owns a number of subsidiaries quoted on the Shanghai stock exchange. These include COSCO Pacific. China Ocean Shipping Company (COSCO) specialises in shipping and logistics as well as serving as a shipping agency and providing services in freight forwarding, shipbuilding, ship-repairing, terminal operation, trade, financing, real estate and the IT industry. It has shipping route network covering North America, Europe, Japan, South Korea, Singapore, Australia, South Africa and West Asia. The group operates in four main segments; Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 14
  15. 15. www.chinaintelligenceonline.com  Shipping & Logistics  Industries  Financing  Trade Of these, the shipping and logistics business segment is the largest; consisting of liner, bulk, tanker and specialised shipping operations, as well as a logistics business, shipping agency, passenger shipping operations and terminal management. Revenue for 2007 was CNY107,998m. COSCO aims to develop emerging markets as its new growth focus. It plans to use its position in the domestic market to increase the utilisation of shipping capacity for domestic trade and expand the profit contribution from such operations. To improve the unbalanced cargo flow situation COSCO aims to make use of the increase in European and US imports and strives to achieve increases in freight rate and volume for return trip cargo transportation. It was expected that Group would complete container cargo shipments of approximately 6,000,000 TEUs in 2008. COSCO operates its container shipping and related businesses through COSCO Container Lines Company Limited ("COSCON"), a wholly-owned subsidiary. As at December 31, 2007, it operated a total fleet of 144 vessels, with a total capacity reaching 435,138 TEUs. Vessels call at over 140 ports in over 40 countries and regions worldwide. It operates 74 international routes, 12 international feeder service routes, 20 China coastal service routes and 62 Pearl River Delta and Yangtze River feeder service routes. The COSCO fleet includes a variety of ship types including container vessel, dry bulk carriers, oil tankers, general cargo ships, heavy-lift carriers, specialised vessels, together with tonnage supply in various size ranges. In Q2 2008 COSCO, signed a contract for four 4,250 TEU vessels from a shipyard based in East China's Jiangsu Province in an order worth USD 280m. The vessels are scheduled to be delivered in August and September of 2012. COSCO has said it plans to expand its fleet with USD 2.3bn worth of new ships. China COSCO operates its dry bulk cargo shipping business through COSCO Bulk Carrier Co. Ltd. ("COSCO Bulk"), Qingdao Ocean Shipping Company ("COSCO Qingdao"), COSCO (Hong Kong) Shipping Co. Ltd. ("COSCO HK") and Shenzhen Ocean Shipping Co. Ltd. ("COSCO Shenzhen"). As of December 31, 2007, it operated 419 dry bulk cargo vessels, among which 202 were owned by the Company and 217 were charted-in, with a total shipping capacity of 32,981,460 DWT. 5.2 OOCL Ocean Overseas Container Line is the creation of shipping and property entrepreneur C Y Tang, and grew out of his original company Ocean Overseas (International) Line , which Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 15
  16. 16. www.chinaintelligenceonline.com remains the holding company today. The company is quoted on the Hong Kong Stock Exchange but remains controlled by the Tang family. Orient Overseas (International) Limited (OOIL), had revenues in excess of USD 5.6bn in 2007 and has two principal business activities: 1. Container Transport and Logistics services, (99%) 2. Property Development and Investment. (1%) In 2006, OOIL sold its third business segment (Ports and Terminals) to Ontario Teachers Business Plan which consisted of 4 terminals in Canada and the US. Orient Overseas Container Line Limited, operating under the trade name OOCL, is a wholly owned subsidiary and is one of the world's largest integrated international transportation, logistics and terminal companies as well as being one of Hong Kong's most recognised global brands. OOCL is the name of OOIL's container transport and logistics services division. OOCL is an international carrier serving China, providing a range of logistics and transportation services throughout the country. OOCL links Asia, Europe, North America, the Mediterranean, the Indian sub-continent, the Middle East and Australia/New Zealand, and provides transportation services to all major east/west trading economies of the world. As of June 2008 OOCL operated 58 owned and long-term chartered-in vessels with a total capacity of 316,527 TEU and 31 short-term chartered-in vessels with a total capacity of 65,185 TEU. OOCL has ordered four more 'SX' Class vessels of 8,063 TEU capacity to be completed by 2009 and four more 'P' Class vessels of 4,500 TEU capacity to be completed by 2010. In the fourth quarter of 2007 it placed orders for a total of six 8,600 TEU newbuild vessels scheduled for delivery from late October 2010 through to the end of 2011. It has also ordered six more 4,500 TEU vessels. OOCL Logistics in China has added 25,000 sq m to its warehousing in Xiamen, Ningbo, Shanghai, Qingdao, Tianjin and Dalian, whilst constructing a new warehouse in the Tianjin Bonded Logistics Park. OOCL China Domestic Ltd., a subsidiary, covers a variety of points in China from a number of origin transportation hubs including Shanghai, Tianjin and Guangzhou through waterway, railway and highway transportation to the Chengdu, Chongqing and Kumming areas. 5.3 Neptune Orient Lines/ APL NOL was established in 1968 as Singapore's national shipping line, wholly owned by the Singapore Government. In 1997 NOL bought America's oldest shipping company, American President Lines (APL). At the time APL was nearly twice the size of NOL and was one year short of 150 years old. APL Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 16
  17. 17. www.chinaintelligenceonline.com began life around the time of the Californian gold rush and in 1867 'The Colorado' was the first vessel to undertake the trans-Pacific run, linking China and the USA. NOL is a global transportation company, with core businesses involved in container transportation, terminals and supply chain management. Historically, the group has been managed through two businesses - Liners and Logistics. Early in 2008 NOL announced its decision to reorganise the group into three principal business units - Container Shipping, Terminals and Logistics. APL Container Shipping is a global container transportation company, providing services to more than 140 countries through a network combining intermodal operations with IT and e- commerce. APL owns and operates a fleet of vessels and offers more than 60 weekly services at more than 90 ports in Asia, Europe, the Middle East and the Americas. APL Terminals provides container terminal network. Its business is linked to a Container Shipping line which contributes around two-thirds of Terminals' total volumes. APL Logistics provides international end-to-end logistics services for global customers employing IT and data connectivity for maximum supply chain visibility and control. The NOL Group has more than 11,000 staff members globally and is publicly listed on the Singapore Exchange with Temasek Holdings, the investment arm of the Singapore Government, being the largest single shareholder with 69%. In 2007, the NOL Group's revenues were USD 8,160m. APL Logistics major customer base is divided between:  Retail  Automotive  Consumer Electronics  Consumer Durables Its largest customers include GM, for whom it moves components from GM supplier plants in North America into China. Its services in the retail sector are focused on moving product from Chinese suppliers to retailers in North America. This is also true for the electronics and consumer durables sector. 5.4 Other shipping companies Almost all container shipping companies do business with China, with prominent shipping companies with parallel logistics operations including: AP Moller-Maersk- the worlds largest containers shipping company, with interests in Terminal management (see Terminal Management Companies) and logistics. Bearing in mind Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 17
  18. 18. www.chinaintelligenceonline.com the size of Maersk’s shipping resources, its logistics operations are small and generally concentrated on near-dock side activities. NYK – largest of the Japanese shipping companies, NYK has both a broad maritime presence and an increasingly successful logistics business. It has a leading presence in the Car-Carrier shipping market and this has been expanded in China in a series of joint ventures providing both terminals and short sea shipping resources for vehicle distribution throughout the country. It also has a useful presence providing logistics for many of Japan’s manufacturers in China. NYK Logistics has the strength to be a major logistics player in China. MOL - Mitsui OSK Lines is smaller and less profitable than NYK and its logistics presence in China is much weaker. It nonetheless has strong businesses across bulk/energy shipping, car- carrying and containers. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 18
  19. 19. www.chinaintelligenceonline.com 6 Rail Freight Companies With the evolution of the rail-freight market in China there will be substantial opportunities for logistics companies of all kinds. With the limited privatisation policies of the Chinese government still unclear it is difficult to make projections. However, there are already existing private sector operators in the Chinese rail market. The Ministry of Railways has been responsible for establishing a number of rail operating companies with the aim of better meeting the needs of certain sectors and users of freight services. These are:  China Railways Container Transport (CRCT)  China Railways Special Cargo Service (CRSCS)  China Railways Express (CRE)  China Railway International Freight Forwarding  Lanzhou Railway Bureau Container Transport It is these companies which are most likely to be engaged in joint-venture and private equity deals. Lanzhou Railway Bureau Container Transport has established a joint venture with Canadian Pacific. Other deals include ‘block-train’ arrangements with major LSPs. For example COSCO, but also APL, OOCL, Maersk and China Shipping, have block train services carrying shipping containers across inland China. Some of the Chinese large operators, such as ST Anda and PG Logistics have chartered rail services on arterial routes. APL Logistics has created a joint venture with East China Railway Express Rail transport administration departments have attached great importance to development of multi modal rail transport, especially to China Railway Express (CRE), China Railway Container Transport (CRCT) and China Railway Special Cargo Service (CRSCS). In 2007, national container transport, special cargo, and baggage volume grew by 13.8%, 13.4% and 10% respectively. 6.1 Company profiles: Domestic 3PLs 6.1.1 Sinotrans Sinotrans Limited is a joint stock limited company, incorporated in the People's Republic of China on 20 November 2002. The Company was listed successfully on the Stock Exchange of Hong Kong Limited on 13 February 2003. Sinotrans Group - Overseas Courier Service Co., Ltd. (OCS) was founded in 1950, and is a large and modern logistics group, providing agency services of international freight forwarding via water, land and air transports. Sinotrans Group businesses cover water transport, auto transport, air express, rail transport, international multimodal transport, warehouse, shipping operation & management, chartering, shipping agency and integrated logistics. As one of the 189 central enterprises under direct leadership of the State-owned Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 19
  20. 20. www.chinaintelligenceonline.com Assets Supervision and Administration Council (SASAC), Sinotrans is among the 120 large experimental enterprises approved by the State Council. Up to the end of 2007, Sinotrans Ltd had total assets of in excess of CNY20bn, while its revenues were CNY38.9bn. The Group operates from the following regions: Guangdong, Fujian, Shanghai, Zhejiang, Jiangsu, Hubei, Lianyungang, Shandong, Tianjin, Liaoning and other strategic regions. The group also operates an extensive and well-established domestic network and an overseas agency network. The Company completed its global initial public offering in February 2003 and listed on the Hong Kong Stock Exchange. 1,787,406,000 H shares were issued by the Company, which comprise 1,624,915,000 shares offered by the Company and 162,491,000 shares offered by the ultimate holding company. As a result, the issued share capital of the Company increased to 4,249,002,200 shares, comprising 2,461,596,200 domestic shares and 1,787,406,000 H shares, representing 57.9% and 42.1% of the issued capital, respectively. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 20
  21. 21. www.chinaintelligenceonline.com Corporate Structure and Subsidiaries Source: Sinotrans In 2008, Sinotrans looked set to merge with another huge transportation enterprise in that country, China Yangtze (Changjiang) Transportation (CSC). In a news release to investors, Sinotrans said parent company Sinotrans Group had informed it that an understanding had been reached with CSC on a merger and reorganisation plan. Sinotrans said it would be submitting an application for the merger to the Chinese government's State Council State Assets Committee. The proposal is subject to the approval of the relevant state department. If it goes through, the deal would create a massive and diversified transport and logistics organisation. It would have operations in the shipping, shipbuilding, freight forwarding, barging, land transport, warehousing and express sectors. CSC has a large shipping division covering oil, containers and bulk. It also provides logistics services related to its shipping operations. Its strength on the Yangtze is especially important, given the Chinese government's policy to develop the river as a major economic area. Revenue from the main businesses of Sinotrans in 2007 totalled CNY 57.66bn (€5.4bn) and the group is aiming at a revenue of CNY 80-100bn (€7.4- 9.3bn) in 2010. Merging with CSC would create the second largest shipping organisation in China behind COSCO. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 21
  22. 22. www.chinaintelligenceonline.com The main places of operation in China are Dalian, Beijing, Tianjin, Qingdao, Lianyungang, Nanjing, Shanghai, Ningbo, Xiamen, Guangzhou and Wu Han. Sinotrans also has co- operative relationships with 20 overseas agents in countries and regions such as Japan, South Korea, South East Asia, Middle East, Oceania, England, Germany, France, Spain, Holland, Belgium, Greece, Turkey, Canada and the USA. Services Sinotrans classes itself as an integrated logistics provider, dedicated to providing supply chain solutions to its customers. The company’s services include:  Integrated Logistics  Freight Forwarding – Company operated and through partners such as Exel  Express Services - Company operated and through partners such as UPS, DHL, OCS  Shipping Agency  Marine Transportation  Trucking Warehousing & Terminals Financials  Revenues in 2007 reached CNY 38,876m.  Profits in 2007 reached 1,240m. 6.1.2 COSCO Logistics In January 2002, the company formed COSCO Logistics. COSCO Logistics serves certain industries, such as automobile logistics, household appliance logistics, project logistics, and exhibition logistics. This subsidiary offers services including international shipping agency, freight forwarding, air transport agency, container yard management, warehousing, consolidation, railway, road and barge transport, project development and management as well as chartering brokerage. COSCO Logistics has over 400 business branches in 29 provinces in China, Hong Kong and overseas. In 2007 it had revenues of CNY11.8bn. The company anticipates that in 2008, the increase in total logistics in China would not be less than 20%, and the increase in the added values of logistics may reach approximately 16%. The company believes that the pace of internationalization of Chinese enterprises is accelerating, which would generate demand for overseas logistics accordingly. With a higher demand for subcontracting logistics services, more and more Chinese enterprises have switched from the proprietary logistics operation to outsourcing logistics services. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 22
  23. 23. www.chinaintelligenceonline.com COSCO Logistics plans to continue to enhance infrastructure investment in order to satisfy the rapid growth in demand. In 2008, the Group plans to invest in the construction of logistics facilities in Dalian, Qingdao, Shenyang, Lianyungang, Shenzhen and Zhenjiang. The company plans to continue its focus on four pillar operations in product logistics, namely, home appliances, chemical, automobiles and exhibitions, with an emphasis on coordinating the developments of various regions and the mutual promotions with supply chain financial services. The development strategy for engineering logistics is to go international, developing markets such as Asia, Africa, and South America. The company expects the ship agency business to strengthen its market position and expand profit sources. With respect to freight forwarding operations, it plans to develop operations by upgrading its service systems in marine shipping slot booking. The company is also looking to expand its direct customer base in air freight forwarding operations, and to construct airport logistics centres in key airports. COSCO Logistics has established over 400 business branches in 29 provinces, cities and autonomous regions in China, Hong Kong and overseas. In January 2002, the COSCO Group formed COSCO Logistics. The company operates 2.65m sq m of outdoor storage space and 250,000 sq m of warehouse space, with 1,200 transportation vehicles (including 32 super-heavy and super-scale special vehicles). The company also has other logistics resources such as barges and railways. The company employs more than 11,000 members of staff. COSCO Logistics is headquartered in Beijing with 8 regional companies and established representative offices in Korea, Japan, Singapore, Greece and Hong Kong. It also holds long- term cooperative agreements with over 40 overseas goods transportation agencies. COSCO Logistics is one of the largest logistics companies in China and has teamed up with Kelon and Little Swan in a tripartite logistics Joint Venture. COSCO is also understood to have plans for a 3PL Joint Venture with Haier, another leading Chinese logistics operator. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 23
  24. 24. www.chinaintelligenceonline.com 6.1.3 PG Logistics Founded in 1994, PG Logistics has built up an extensive network comprising six branches and 43 offices covering more than 40 mainland cities. Its network has now expanded beyond China to serve the US, Australia, Thailand and Hong Kong markets as well. Its advanced logistics information platform provides integrated logistics services to many of the world's top multinational companies as well as large domestic manufacturing groups. Guangzhou's Procter & Gamble has outsourced its logistics operation to PG Logistics. Its customers include the Chinese logistics of Proctor & Gamble, Phillips, Unilever, McDonalds, Shell, Kraft and Budweiser. PG Logistics currently has 48 offices nationwide and there are plans to build 15 logistics bases by 2010, as well as aiming to expand their overseas network, which consists of offices in Hong Kong, Thailand and Australia. The area of the bases will range from 150,000 square metres to 700,000 square metres. The first phase of the 330,210 square metre base in Jiangsu Province's Suzhou is already in operation and the 700,000 square metre base in Guangdong Province's Guangzhou is under construction. The company plans to implement a total supply chain solution strategy by adding services, such as money settlement and customs clearance at the bases. Investment in the Suzhou and Guangzhou operations is estimated at 430 m Yuan (USD 51.8 m) and more than 800 m Yuan (USD 96.39 m), respectively. 6.1.4 Chic Logistics Based in Shanghai with offices and operations throughout China, Chic specialises in one-stop logistics services, from local distribution services, regional distribution services and home delivery services through a complete nationwide supply chain service. Founded in 1997, the company has grown to offer a full-service portfolio and a network with 130 operating sites in 78 cities. Its network covers the highly industrialised eastern areas as well as the mainland's interior provinces. Menlo Worldwide Forwarding acquired Chic Holdings Ltd. and its wholly owned subsidiaries Shanghai Chic Logistics Co. Ltd. and Shanghai Chic Supply Chain Management Co. Ltd. and they were subsequently acquired by UPS. The company has developed a non-asset based business model concentrated on providing supply chain solutions and extending network coverage. This allows the company to remain responsive to customer needs without bearing the risk of eroding profit margins in the road transport sector. Acquired by Menlo Worldwide in 2007, Chic extended its reach internationally, providing first mile logistics for products leaving China and last mile logistics for imports. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 24
  25. 25. www.chinaintelligenceonline.com It has 80 branch offices, seven subsidiaries, sixteen sub-warehouses all over China and employs 1,500 people. It established branch management offices in the following cities, Shanghai, Beijing, Guangzhou, Tianjin, Chengdu, Xi'an, Suzhou, and Wuhan, covering 117 operation offices all over China. By August 2006, it had warehouse operation in the following 16 cities: Shanghai, Beijing, Shenyang, Tianjin, Jinan, Xi"an, Chengdu, Guangzhou, Shenzhen, Kunming, Urumqi, Hangzhou, Nanjing, Suzhou, Changsha, and Wuhan in total of 24 warehouse sites. 6.1.5 Tempus Logistics As one of the Shenzhen Municipal government "Emphasised Logistics Enterprises,” Tempus Logistics Holdings Ltd., founded in 1998, provides a wide range logistics services. Tempus operates in a number of areas including: logistics consulting; air, land and sea freight and intermodal transport; warehousing, distribution, handling, packaging, and value-added processing; international and domestic plane and hotel reservations; and property management. It possesses several subsidiaries dealing in varied businesses, such as Shenzhen Tempus International Logistics Co., Ltd., Shenzhen Tempus Freight Trading Centre Co, Ltd., Tempus International Logistics (China) Ltd, Tempus Bonded Warehouse (Shenzhen) Co., Ltd, Tempus International Hong Kong Ltd., the Tempus International of North American Ltd., Tempus International of Canada Ltd. Tempus has been approved by the Ministry of Commerce and Customs General Administration and deals in import and export business and overseas and domestic transport of freight by ocean, land, and air. Tempus was listed in the Top 100 Logistics Enterprises in China in the year of 2004, 2005 and 2006, in the Top 30 Private Logistics Enterprises in China in the year of 2004. It also received an award for being an "Ethical Business Enterprise.” In the Pearl River Delta, the company has facilities in Dongguan, Huizhou, Zhuhai, Longgang, Guangzhou, and Zhongshan. It has established a multi-modal air, sea, road, and rail network to reach destinations throughout the Asia, Europe, and the Americas. It has fleet of 200 vehicles comprised of container trucks, cargo trucks, refrigerated trucks, and cars. All vehicles have installed GPS to facilitate automatic tracking of goods. Its base in Shenzhen gives it convenient access to Hong Kong. It is 28 km to Hong Kong International Airport, 31 to Tsim Sha Tsui, 30 km to Kwai Chung, 30 km Shenzhen airport 30 km, 30 km toYantian, 25 km to the Shekou port, 10 km to the Lo Wu Control Point. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 25
  26. 26. www.chinaintelligenceonline.com 6.1.6 FOTON Logistics Headquartered in Shanghai, with 125 acting outlets in Zhengjiang, Guangdong, Fujian, Jiangsu and other inland cities, FOTON was approved by China's Ministry of Foreign Trade and Economic Cooperation on 6th May, 2002. FOTON Logistics succeeded, in a short time, to enter the international logistics market. Its main businesses include international import and export of goods by air and sea, warehousing, customs clearance, freight forwarding, international express, and consulting for large logistics projects. The company has built up its overseas network to attract international clients. FOTON was registered by the State Administration for Industry and Commerce as a major international freight forwarder enterprise. In December 2002, it was authorised by the China Civil Aviation Authority to function as sales agents for national aeronautics with a consignment certificate. It is an IATA member and a member of China Freight Forwarding Association and the Shanghai Association executive director forwarding unit. It is a fast- developing integrated freight forwarder in China. It was ranked No. 7 of Shanghai logistics industry in 2004; No.19 in the national top 100 logistics industry in 2004 and No.18 in 2005. The company headquarters in Beijing serves as the management centre. With approximately 1,000 staff, FOTON owns four branches, 11 logistics departments, 13 representative offices, 6 distribution centres and 3 research and development centres. It has multilevel logistic centres covering the country; each with access to road, railway and air transportation. The transportation network covers Beijing, Tianjing, Hebei, Shandong, Liaoning, Jilin, Heilongjiang, Chongqing, Hubei, Hunan, Anhui, Guangdong, Fujian, Jiangsu, Zhejiang, Shanghai, Shanxi, Sichuan, Ningxia, Xinjiang etc. The Changsha Logistics Park is located in the Langli township, Changsha city, of Hunan Province. Covering an area of 70,000 sq. m. The logistics park has three sealed warehouses, and supplies 160 auto parts to clients. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 26
  27. 27. www.chinaintelligenceonline.com 6.1.7 Kerry EAS EAS was established in 1985 as a joint venture between Hua Tong Industrial Development (Chinese, 75%) and EAS Datong Air Cargo (HK, 25%). In 2004 Kerry Properties, a Hong Kong development company, acquired a controlling stake of 70% in EAS for CNY380m. KEAS provides logistics solutions in China through its network in over 1,100 cities. Freight forwarding accounts for about 60-70% of EAS's revenue, 3PL solutions about 10-20% and express about 20%. KEAS has built a number of distribution centres throughout China, usually located in close proximity to air and sea ports. These include Beijing, Shanghai, Hong Kong, Guangzhou, Wuhan, Dalian. KEAS has 120 branches and representative offices in China, 9 overseas branches in Germany, Spain, Singapore and Malaysia, a domestic network covering more than 1,100 cities and a global network reaching over 200 countries and regions through alliances and agencies. The company has been successful in winning a number of important pan-Chinese licenses. These include: Integrated Logistics License; Forwarding License; Land Transport License; CAAC License; NVOCC License and Distribution License. In 2007, its revenues were HKUSD 3.6bn. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 27
  28. 28. www.chinaintelligenceonline.com Kerry EAS owned bonded warehouses Source: Kerry Logistics A substantial part of KEAS' strategy to rationalise its corporate and business structures, in conjunction with the integration process between the operation of Kerry Logistics' Mainland China business and KEAS, has been completed. Certain low-margin businesses have been eliminated as a result of the continuing business restructuring efforts of KEAS, which has helped to enhance KEAS's operating margin despite a decrease in revenue. A new information technology (IT) system connects over 100 offices in Mainland China under one IT network as well as the pan-China "Transport Operations Platform" which was launched in mid-2006. This has helped KEAS to create an integrated nationwide distribution network in Mainland China. Going forward, KEAS intends to continue to fine-tune its business focus, and align management procedures and cultures across all operating units in Mainland China. In 2006 the 173,000 sq ft bonded logistics centre in Tianjin's Free Trade Zone commenced operations. This is KEAS' largest bonded facility in Northern China and is strategically located adjacent to Tianjin Xingang, the biggest container hub in the northern region of China. Also in 2006, the six-storey 269,000 sq ft bonded logistics centre, incorporating a multi-function warehouse in Shenzhen’s Futian Free Trade Zone, commenced operations. KEAS intends to explore opportunities for building new logistics facilities to strengthen its infrastructure network in other strategic locations in Mainland China, such as Shanghai, Chengdu and Xiamen. Kerry EAS operates distribution hubs at strategic locations including Beijing/Xi'an, Chengdu, Guangzhou/ Shenzhen, Jinan, Shanghai/ Suzhou, Shenyang, Wuhan and Xiamen. All Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 28
  29. 29. www.chinaintelligenceonline.com distribution hubs are connected by scheduled long-haul trucking services, forming a Pan- China hub-and-spoke distribution network. KEAS operates 200,000sq m of warehouses in more than 90 locations and 50 cities across China. Distribution centres in major China provinces include Beijing, Shanghai, Guangzhou, Shenzhen, Xiamen, Dalian, Wuhan and Chengdu KEAS operates 124,000sq m of bonded warehouses in Free Trade Zones (FTZ) such as Tianjin, Qingdao, Shanghai (Waigaoqiao), Xiamen (Xiangyu), Shenzhen (Yantian & Futian), and Zhuhai. Kerry EAS also owns a branch office in Suzhou Logistics Park, which is the first experimental FTZ authorised by customs Kerry EAS operates distribution hubs at strategic locations including: Beijing, Chengdu, Guangzhou, Shenzhen, Jinan, Shanghai, Shenyang, Wuhan, Xian. All distribution hubs are connected by scheduled long-haul trucking services, forming a comprehensive Pan-China hub-and-spoke distribution network. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 29
  30. 30. www.chinaintelligenceonline.com 6.1.8 Datian W Group (DTW)/FedEx In January 2006 global express company FedEx Corporation announced that its FedEx Express unit had signed an agreement with Tianjin Datian W. Group Co., Ltd. (DTW Group) to acquire DTW Group's 50% share of the FedEx-DTW International Priority express joint venture and its domestic express network in China for USD 400 m. According to the company, the acquisition will include DTW Group's 50% share in the International Priority express joint venture, converting the joint venture into a wholly FedEx- owned company. In addition to this it will include the DTW Group assets used to perform International Priority services and DTW Group domestic express assets from 89 locations. After completing the deal FedEx will employ more than 6,000 people in China. FedEx currently serves China with 23 frequencies per week and plans to add three more in March. Its network already connects around 200 Chinese cities and it plans to add an additional 100 during the next few years. Earlier in January it broke ground on a new USD 150 m Asia Pacific hub in the southern China city of Guangzhou that will employ about 1,200 workers. FedEx and DTW Group first entered into a joint venture agreement in 1999. Speculation over FedEx's plans for its development in China had been increasing, especially given rival UPS’ buy-out of its joint venture with Sinotrans in 2005. Da Tian W Group (DTW) was founded in 1992 and, based in Beijing, had become one of the largest privately owned logistics companies in China. In 1999, FedEx and DTW signed a co- operation agreement in which they established a joint venture known as FedEx-DTW Express Co Ltd. The 10-year contract makes DTW the sole sales agent for FedEx in China. Currently FedEx-DTW has established 144 stations nationwide and provides time-sensitive delivery and 24-hour on-line tracking services. The company has recently set up its own domestic express service which will involve about 80% of its staff and require investment of 100 m Yuan (USD 12 m) annually for the next three years. The standard express service is designed to become the company's main business in 2008 with an estimated turnover of 1.8 billion Yuan (USD 217 m). The investment will be used to develop a more widespread network throughout the country and improve the company's information technology applications. DTW is highly ambitious and plans to run a fleet of cargo aircraft in the near future. It is also hoping to list its shares on a Chinese or international stock exchange. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 30
  31. 31. www.chinaintelligenceonline.com 6.1.9 Guangzhou HYC Logistics Established in 1994, HYC Logistics Ltd. is a comprehensive privately operated ISO9001: 2000 accredited enterprise offering third party logistics services with a set of warehousing, distribution, and packaging centres. HYC has registered capital of CNY 5 m, a total investment of CNY 58 m and an approximate annual revenue of CNY 30 m. Based in the Huangpu Area, Guangzhou, it is conveniently located near the airport, major highway exits and rail services. In terms of revenue streams, HYC confirmed that their primary focus at present is warehousing which has experienced the fastest growth rate over the past few years. Major warehousing clients for the company include large scale electrical goods manufacturers like Jabil Circuit, and Haier. In some circumstances the company does offer air transport, in particular for Jabil Circuit, and under those circumstances uses Shanghai Airlines as an agent. All air transport is processed through this agent and the company does extend this service to the parcel segment of their business model. The company does not operate a centralised sorting hub and cargo sorting is not part of their business model at present. The company operates a large number of collection and distribution centres mainly located throughout the Pearl River Delta (PRD) as most of their business originates in Guangzhou, Shenzhen, the wider PRD, and southern China respectively in terms of volume. At present the company operates three warehouses in the Guangzhou Huangpu Development Zone, one of which is rented from Zhilian, the others wholly owned; the most modern of which covers 20,000 square metres. The company also has two warehouses located in Shenzhen. The company intends to extend its ownership of wholly owned warehouses as these leases expire. HYC at present own and operate a fleet of 130 vehicles. This fleet breaks down to 80 trucks and 50 vans, with the trucks ranging from 3-30 tonnes. Half of these trucks are enclosed and half are flatbed, none are containerised although some are fitted with hydraulic ‘flying wings’, in particular those utilised by auto industry customers, i.e. Dongfeng-Honda. Almost all of the company’s entire transport fleet is equipped with GPS as well as alarm systems and the company also operates an automated TMS (transport management system) and WMS (warehouse management system). The company has many offices around the country including a packing centre and employs around 1,500 staff including transport workers. Almost all of these workers are directly employed by the company, save for a very small percentage of loaders that are indirectly employed. The number of drivers directly employed by the company is at present around 200 and all drivers directly employed by HYC are recruited and trained by the company in an in-house training facility before starting operation. Despite mainly using directly employed drivers, the company does however use leased drivers and vehicles from contract logistics firms to extend its network especially in and around Beijing and Hebei Province. There are literally thousands of such companies across Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 31
  32. 32. www.chinaintelligenceonline.com China, making it relatively convenient for HYC to extend their business network without overbearing investment burdens on less popular lines. It is this subcontracting that makes it difficult for HYC to accurately calculate the exact number of drivers used in the operations. The company estimates that 60 percent of its road transport routes are covered by in-house vehicles while around 40 percent is subcontracted. In terms of business volume, around 70 percent of the company’s total originates in Guangzhou, with the remainder spread nationwide, but with a considerable proportion of that originating in Shenzhen and the wider PRD. Only around 40 percent of the cargo originating in Guangzhou is delivered in the same city, with the remainder going to the wider Guangdong region, and a small percentage to the wider China area. Of the cargo originating and destined for the Guangdong region the vast bulk is FTL. FTL therefore accounts for the majority of business of the company, whilst routes to wider China region tend to be LTL. On average, LTL accounts for 5-10 percent of total revenue of the road transport division. At present the company operates two packing centres, one in Guangzhou and one in Tianjin. Another secondary service the company offers is outsourcing of warehouse management and operation services. The company’s main warehouses are located in Guangzhou and Shenzhen and cover an area of 60,000 square metres. In terms of the company’s core transport business, the company is a fully comprehensive logistics firm, offering LTL, FTL, express delivery, and COD services, although the latter is for selected customers only. The company’s main branches are located in Guangzhou, Shenzhen, and Wuhan, with agents operating in the Beijing-Tianjin region, Shanghai, and Wuhan. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 32
  33. 33. www.chinaintelligenceonline.com 6.1.10 Other players Tianjin Delide Logistics Co.,Ltd. Is a joint venture between Tianjin Delide Group and Shanghai Link Software Technology Ltd. (Japanese). It was one of the first Beijing-Tianjin dangerous goods transportation companies to follow international standards. The new logistics enterprise has a registered capital of CNY 150 m, owns four wholly-owned subsidiaries, more than 80 logistics and distribution enterprises in the country, and is a member of the Delide Logistics Distribution Union. As well as integration into a modern logistics system and an enterprise supply chain, DLD also provides international logistics services. It began its business focusing primarily on the transport of hazardous material. Through the establishment of existing transport networks, it has taken advantage of routes it has opened and existing storage facilities to branch into the transport and storage of non-hazard goods. The company continues to expand in this manner. Zhongtong Freight Centre was approved by the Industry and Commerce Administration of in 1992. Its network spreads over 20 cities and includes Beijing, Shanghai, Guangzhou and other major urban centres. It is involved in road, water, railway and air transportation. The company works with Chongqing Vessels Corporation to develop the Yangzi River shipping express, containers transportation and bulk cargo transportation service. In recent years, it developed LFL express, container services, road, air direct service and water, land direct freight. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 33
  34. 34. www.chinaintelligenceonline.com 6.2 Foreign logistics operators 6.2.1 Nippon Express Nippon Express has been present in China since 1991. In 2003 Nippon Express launched a new warehousing operation with around 5,900sqm in Guangzhou. The aim was to penetrate the Southern China logistics business. Nippon Express (Zhuhai) Co Ltd, whose parent company is Nippon Express (HK) Co Ltd has 5 major sites in Guandong. Its operations are centred on Shenzhen and Zhuhai. Nippon Express (Zhuhai) targets foreign manufacturers although as the Chinese economy is expanding at a rapid rate it is also hoping to increase its presence in the domestic market. In China it operates 18 companies in 101 locations with over 5,000 employees. Nippon Express Main Local Companies in China Name Operations Manufacturing, Container Dalian Nittsu Container Manufacturing Co Ltd Etc Trucking, Customs Nittsu Sinotrans Logistics Dalian Ltd Brokerage, Forwarding Trucking, Customs Shanghai Express International Co Ltd Brokerage, Forwarding Nippon Express (Shenzhen) Co Ltd Warehousing Trucking, Customs Uni-Sky Express Service Co Ltd Brokerage, Forwarding Nippon Expres (Zhuhai) Co Ltd Warehousing Nippon Express Global Logistics (Shanghai) Co Ltd Warehousing Nippon Express (Suzhou) Co Ltd Warehousing Nippon Express (Zhuhai F.T.Z) Co Ltd Warehosuing Source: Nippon Express Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 34
  35. 35. www.chinaintelligenceonline.com 6.2.2 Kintetsu World Express (KWE) KWE's principal businesses are international and domestic freight forwarding, using transportation provided by airlines and shipping companies, and representation on behalf of air carriers. These operations include airfreight forwarding, ocean freight forwarding and trucking. The KWE Group is also engaged in the related fields of customs clearance, trucking, temporary staffing, insurance agency, property management, and packing. KWE has 43 affiliated companies worldwide and 11 in Japan. It has a global operating network with 10 overseas offices in 30 countries that comprise KWE's Five Regional Management System of Japan, the Americas, Europe and Africa, East Asia and Oceania, and Southeast Asia and Middle East regions, covering 273 overseas operational bases in 189 cities. It ranks among the top companies in the world in sales of international airfreight services, providing a variety of logistics services. KWE generates about 50% of its operating income from overseas affiliates. Revenues for 2007 were 292.3bn yen. The Chinese Headquarters of KWE are in Beijing. KWE China has a turnover of around €51 m and employs 755 staff throughout China. It has gateways in Hong Kong and Shenzhen for Southern China. Also in Shenzhen it provides a vendor-hub for overseas vendors to offer a JIT service. KWE aims to establish itself as the Trans-Pacific leader in logistics and use the Pacific region as the launching pad. KWE is strongly focused on the growth opportunities in China. The company expects the Chinese economy to continue to grow rapidly until around 2010. The company management believes that there is likely to be continued expansion of the international division of labour, whereby parts and materials are shipped from Japan to China, assembled in China, and the finished products are then exported to Japan or the U.S. Other services offered by the company include:  Air and Ocean Freight Forwarding  Import and Export Customs Clearance  Clearance Agent Status and Online Customs Systems  Bonded Transfer  Trucking, Warehousing and Distribution  Customer Service System (Track and Trace via the Internet)  Third Party Logistics 6.2.3 DPWN/DHL DPWN has a substantial China business. However as DPWN does not have physical sea- freight or air-freight operations, its market presence in China is not quite what it is elsewhere in the world. Rather DPWN appears to have a complex fragmented business presence which Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 35
  36. 36. www.chinaintelligenceonline.com often seems to be competing against itself. This in great part must be due to the need to create joint ventures but is also heavily influenced by DPWN strategy of expansion by acquisition. The best example of this is Exel, which has substantial operations in both Hong Kong and mainland China. Excluding Exel, DPWN has three principal businesses in China: DHL/Sinotrans. (see also Sinotrans & Express) DHL-Sinotrans is a 50/50 joint venture with the large Chinese logistics service provider Sinotrans. This is a diverse transport operation, but is particularly strong in air cargo. Bearing in-mind the size of Sinotrans in the Chinese market and the fact that it has other joint ventures, DHL might be perceived as the junior partner in this venture. DHL Danzas Z F Freight Agency /DHL Danzas Air & Ocean Danzas Z F Freight Agency is one of China’s largest freight forwarders and is probably DHL’s most important business in China. The business was started by Danzas in 1991 from small beginnings, however the creation of a joint venture with ZF enabled Danzas ZF to obtain a Class A Freight Forwarding License from MOFTEC. DHL states that the company now has a turnover of CNY 1.6bn. Danazas ZF has expanded beyond air and sea freight forwarding to become a broader logistics service provider, including the provision of road freight and warehousing capabilities. Recently it has won a series of major contracts for the support of major infrastructure projects from the chemical oil and gas and nuclear power sectors. Danzas ZF is organised as part of DHL Global Forwarding division of DPWN Sentaifei Freight & Forwarding Co. Ltd/ DHL Solutions Sentaifei Freight & Forwarding Co. Ltd, another joint venture based in Beijing, is part of the DHL Solutions/DHL-Exel Supply Chain division of DPWN. It appears to be a smaller business than Danzas ZF not least because it has less emphasis on shipping and airfreight forwarding. Rather it is an attempt by DPWN to create a more ‘sector focused’ logistics capability designed to serve manufacturers and retailers. 6.2.4 Exel-DHL With the purchase of Exel in 2005, DPWN inherited a large and in some respects more coherent China presence than its own. At present it is unclear at what stage the integration of the two operations is at. However it is assumed that most of the Exel operations will be integrated into ‘Exel/DHL Supply Chain’ Mainland China Exel has had an established presence in China for over 20 years. It first established its presence in the country by appointing Sinotrans as its agent in 1984. In 1996, Exel-Sinotrans Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 36
  37. 37. www.chinaintelligenceonline.com Freight Forwarding, a joint venture between Sinoair and Exel was formed. In January 2003, Exel bought a stake in Sinotrans, when the company listed on the Hong Kong Stock Exchange. Exel in China is recognised as an ‘A’ Class Licence Freight Forwarder and holds a NVOCC licence. This enables Exel to book its own space with carriers and to issue its own Henderson Line Bill of Lading. Exel’s airfreight operations in North China are coordinated through Beijing as a gateway. Tianjin, Dalian, Qingdao, Shenyang and Xi'an are another five operating locations in the region. In East China, Shanghai functions as a gateway to oversee the airfreight business and operations of four sub-stations in the region including Nanjing, Hangzhou, Suzhou and Chengdu. Exel’s services and capabilities include: international air and sea transportation services, consolidation international courier services, customs consultancy, customs documentation, order fulfilment, electronic data interchange, landed costing. Exel also has a contract logistics presence in 15 cities in China and employs around 1,200 people. With a total of 833,900 square feet of warehousing space, it has facilities in Beijing, Tianjin, Shanghai and Yantian and provides a range of integrated supply chain solutions for its customers. In addition to distribution these include kitting, reverse logistics, sub-assembly inspection, testing and repair, purchase order management, inventory management, repacking and re-labelling. In Beijing, Exel operates a fully automated supplier park operation for Nokia. Warehousing and distribution is managed inside the park. Services provided include order and inventory management, stock replenishment, just-in-time buffer stock delivery, milk runs and technical services including repair, warranty and RDA. In 2004 Exel-Sinotrans Freight Forwarding Co signed a major new deal with the largest PC manufacturer in China, Legend Group. The JV will provide distribution services for finished product from warehouses in Beijing and Shanghai. The company has been providing Legend with Service Parts Logistics to its after sales market since the beginning of 2003. The new contract involved the management of existing distribution centres, the construction of a new facility in Beijing and the implementation of new supply chain technologies. Freight forwarding: Hong Kong It is assumed that this business will be integrated into DHL global forwarding, however this is not known for certain. It would represent a considerable strengthening of Danzas ZF and will possibly provide the basis for DPWN creating a wholly owned business in China- possibly based in Hong Kong. Exel offers comprehensive air and sea freight facilities in Hong Kong. Exel is ranked the number one airfreight forwarder in Hong Kong by IATA in terms of revenue. The company has approximate staff strength of 1,000 and over 150 vehicles providing domestic Hong Kong and cross-border services. Exel has over 140,000 square feet of dedicated airfreight warehouses located at Hong Kong Airport. It provides door-to-door, airport-to-airport, charters, express, merge-in-transit Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 37
  38. 38. www.chinaintelligenceonline.com restricted and hazardous goods, temperature controlled goods, out of gauge goods services. It also provides airfreight services for various fashion labels and handles their outbound shipment. Exel offers over 142,000 square feet of seafreight warehouses located at Kwai Chung Container Terminal. Interview: Exel China sets out key challenges and opportunities From Exel’s offices on the 18th Floor of the Tomson Commercial Building in the Pudong region of Shanghai it is easy to see why China has become such a major focus of international attention. Looking out over a skyline which could easily resemble any of the world’s largest financial centres, it would be easy to forget that just ten years or so ago the area was almost completely undeveloped. The number of new construction sites which are evident would also suggest that development has some way yet to go. It is in this dynamic environment that Exel Logistics China has its head office. Exel, like many of its competitors in the freight forwarding and logistics sectors, has been a major beneficiary of the exponential growth of the Chinese industry. However such strong growth has not been without its issues. According to Roland Chong, Managing Director of Exel China, retaining good people is becoming one of the main challenges in doing business. Unlike other logistics companies, he has experienced little difficulty in finding well qualified professionals due to tapping into the number of universities which are practising in the sector. However retaining staff has become a problem, especially with the high level of logistics operators entering the market. Another issue is the complicated business environment in which logistics companies have to operate. The requirement to apply for licences to a variety of different government agencies has meant that companies such as Exel have become experts in dealing with the authorities. The award of a Class A forwarding licence is just the start, with companies then needing certification from the Civil Aviation Authority, the Ministry of Commerce and the Ministry of Communications if they wish to offer a full range of services. Exel is in the process of applying for a domestic transportation licence to add to its portfolio. This will give it the ability to invoice the customer directly without the need to use agents and allow it to put into operation its Lead Logistics Provider business model which it has implemented successfully elsewhere in the world. However the company, traditionally ‘asset lite’, has no intention of investing in transport assets. Instead it intends to concentrate on ensuring the quality of its sub-contractors, especially from the point of view of security. With a large number of illegal operators in the market, this could well become a key differentiator. Chong added that a global company such as Exel could not afford to cut corners. Instead it would focus on its value adding services, and especially its IT capabilities to create a competitive advantage. One of the issues which many freight forwarders have experienced is the capacity crunch for air and sea lift. However Chong says that Exel’s global relationships with air and sea carriers have helped it overcome this. He believes that Exel’s global partnerships with carriers, not completely focused on spot price or capacity, have given it an advantage over smaller providers. Selected Logistics Providers Profiles from the CIO Database | China Intelligence Online 38

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