3PLs in Asia Expansion

Sept. 12, 2007
Schneider Logistics (Tianjin) Co. Ltd. announced it had purchased the key operating assets of BaoYun Logistics in the People's Republic of China. The

Schneider Logistics (Tianjin) Co. Ltd. announced it had purchased the key operating assets of BaoYun Logistics in the People's Republic of China. The investment allows Schneider to expand its current supply chain consulting and transportation and logistics service offerings by offering transportation, warehousing, cross-docking, third-party logistics, and consulting services on the domestic Chinese market.

"I am happy that our companies will be working together and creating a Chinese company that leverages proven international systems and practices," said ZhiHua Yu, BaoYun Logistics.. "Schneider's advanced operating model, innovative technology, and leading supply chain practices will help our associates provide more effective results for our customers," he added.
"We are taking very deliberate, strategic steps in China," said Martin Winchell, managing director of Schneider Logistics, China.

Another major purchase was announced by Menlo Worldwide LLC. The global logistics company is a subsidiary of Con-way Inc. Menlo announced it had signed a definitive agreement to purchase Chic Holdings Ltd and its wholly owned subsidiaries Shanghai Chic Logistics Co. Ltd., and Shanghai Chic Supply Chain Management Co. Ltd. The deal price was set at $60 million plus an undisclosed future earn-out incentive based on performance.

Headquartered in Shanghai, Chic Logistics provides domestic third-party logistics and transportation management services in China. Its network includes 130 operating sites in 78 cities. Revenues were reported as US$55.2 million in 2006, a 40% increase over 2005.

"Distribution and logistics management is an exceptionally dynamic market in China," said Johnson Shen, ceo of Chic Logistics. "Joining with Menlo will help us to accelerate growth, introduce more services for customers, and quickly build into new markets with international capabilities," he added.
Combined, the companies will have 1,500 employees in China operating 139 sites in 79 cities.
Earlier, DHL announced increased capacity for Hong Kong-Beijing service. Its dedicated flight frequency is now 10 times weekly, including newly added weekend flights.

DHL will use a Boeing 727-200F aircraft operated by Air Hong Kong-a 60:40 joint venture between Cathay Pacific and DHL. The new freighter, with a capacity of 24 tons per sector, will add 58% to payload capacity.
Trade between Hong Kong and Mainland China has been registering double-digit growth in recent years, the company points out. Two-way trade figures rose 21.6% in 2006, and the upward trend has continued into 2007.

Developer ProLogis announced it will develop a new distribution park near Shanghai Hongqiao International Airport. The company acquired a 48-acre parcel that includes an existing warehouse and two closed manufacturing facilities which it will convert for use as distribution centers.
An intra-Asia service between Japan and Thailand starts September 25th from Hong Kong. Evergreen Marine Corp and Wan Hai Lines Limited will provide the fixed-day weekly express service known as the Japan-Thailand Express Service. It will provide direct-call service at Hong Kong, Tokyo, Yokohama, Osaka, Kaohsiung, Ho Chi Minh, Laem Chabang, Hong Kong. Two 900-TEU (twenty-foot-equivalent unit) ships will come from Evergreen and one 900-TEU ship from Wan Hai lines.

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