China Logistics



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4.3 In-house Player

Haier Group (In-house Player)

Company Background


Haier Group was incorporated in 1984. Over the past 17 years, Haier has witnessed an annual sales increase of 78% and made significant achievements with a wide range of household electrical appliances made in 86 categories and 13,000 specifications. Haier generated total sales revenue of USD7.28 billion in 2001 with an export value of USD420 million to the US and 160 other countries.

Logistics Operation & Facilities

Haier has 1600 container trucks, 42 distribution centers, 3 million square meter warehouses, and all the facilities are linked with SAP LES logistics execution system to achieve 24-hour delivery in regional cities.


Haier intends to expand its logistics business to offer third party logistics services leveraging its current advantage of huge goods flow and powerful infrastructure. The company transformed its in-house distribution unit into an independent logistics services company. The new alliance with China Post will give Haier access to that organization’s network and transportation assets. Haier’s long term strategy calls for continued growth internationally and in its logistics services.


4.4 3PLs

China Merchants Logistics Group Co., Ltd.

Company Background


Founded in 1872, China Merchants was the first truly commercial Chinese company. It became the first wholly PRC invested company to be based in Hong Kong in 1950, and the first to be listed on the Hong Kong Stock Exchange in 1979. Also in 1979, China Merchants established China's first Industrial Free Zone, which greatly contributed to the opening up and reforms of China. Today China Merchants diversifies itself in industrial zone development, logistics, infrastructure and finance with total assets of US$6 billion. As a leading player in logistics in China, China Merchants Logistics (CML) has emerged through an amalgamation of the Company's transport, shipping, warehousing and forwarding businesses. Additionally it established 3PL joint ventures (JVs) with Singapore (Sembcorp and PSA) and UK (Tibbett and Britten) in the mid-90’s.

Subsidiaries

  • Shenzhen Anda Cargo Transportation Co., Ltd.

  • Shenzhen Anda Container Transportation Co., Ltd.

  • Shenzhen Anda Passenger Transportation Co., Ltd.

  • China Merchants Kin Swiss Transportation Co., Ltd.

  • China Merchants Shipping & Enterprises Co., Ltd.

  • China Merchants Petrochemical Co., Ltd.

  • Shenzhen Xunlong Shipping Co., Ltd.

  • China Ocean Shipping Tally Corporation Shekou Branch

  • China Ocean Shipping Agency Shenzhen

  • China Merchants Marin & Trans (Shekou) Co., Ltd.

  • China Merchants International Freight & Forwarding Co., Ltd. (Beijing, Shanghai)

  • Shenzhen St-Anda Logistics Co., Ltd.

  • Shenzhen Tibbett & Britten-Anda Logistics Co., Ltd.

  • China Merchants-PSA Logistics Network Co., Ltd.

  • Qingdao Beer Merchants Logistics Co., Ltd.

  • Liaoning Chenda Merchants Logistics Co., Ltd.

Facilities

China Merchants has 20 logistics-related subsidiaries covering 3pl, transport, warehousing, freight forwarding, tally, customs declaration and other businesses. The companies assets valued at RMB 2.2 billion include:



  • 41 various vessels with capacity of 3.8 million tons including 3 LPG vessels

  • Shekou Port, Chiwan Port, and Mawan Port with container yard of 100,000 m2 in the west vicinity of Shenzhen

  • Over 200,000 m2 of storage space, 90,000 m3 of oil tanks, 7 oil & LPG wharves with total capacity of 9,000 tons

  • 300 container trucks among which 200 trucks and 100 oil/LPG tankers

  • 463 taxies making it the second largest taxi company in Shenzhen

Logistics Service & Strategy

CML provides domestic distribution, coastal shipping, port operation, dangerous goods delivery, logistics software, freight forwarding, etc. These services are currently provides by independent subsidiaries, but CML intends to consolidate common operations like IT, transportation, customer brokerage and warehouse management as it moves toward fully integrated supply chain management capabilities.

One distinguished service of CML is dangerous goods distribution such as LPG, diesel and gasoline. Operating through 11 major hubs, CML’s distribution network covers procurement, warehousing, distribution and sales of petrochemicals in south, middle and eastern China.

CML focuses on three regions: The Pearl River Delta, the Yangtse River region and the Bohai Basin.


Shenzhen ST-Anda Logistics Co., Ltd.


Company Background

ST-Anda is a joint venture formed in December 1995 between Sembcorp Logistics (SCL) of Singapore and China-Merchants Logistics Co., Ltd. SCL holds 51% stake in the JV – a unique position for a foreign logistics company in China that was approved by the Ministry of Communication, Guangdong Provincial Government and Shenzhen Municipal Government. As an early entrant in China, ST-Anda has a nation-wide license to provide third party logistics services consisting of warehousing, general haulage, distribution of goods, and information technology services.


ST-Anda is a non-asset third party logistics player that operates a national transportation network including 20 distribution centers and 9 forward DCs with a combined warehousing space of 145,000 square meters serving more than 600 cities in China. It claims to be able to deliver goods to 50% of these cities within 48 hours.

Logistics Services

ST-Anda’s core services include warehouse management, transportation management, inventory management, fulfillment, inbound logistics, retail supply chain management, cross-dock management and customs brokering. The company’s value-added services include kitting, assembly and cable cutting and drumming. It is in the process of developing a credit and collections business and is enhancing its capabilities in reverse logistics operations. The company operates a Call Center to offer pipeline inventory tracking information and resolve service problem. In June 2002, ST-Anda became ISO9001 certified.


Key Customers

ST-Anda’s main customer segment is fast-moving commodity producers such as Colgate Palmolive, Johnson & Johnson, Pepsi, Kraft Foods, L’Oreal, and CPC Best Food. Another segment is pharmaceutical enterprises like Xi’an Janssen. The company also provides distribution services for chemical producers like Exxon and GE Plastics.


APL Logistics China (Shanghai) (APLL)

Company Background


APL Logistics, in conjunction with its sister company, container shipping line APL, has had a presence in China for more than 130 years. The two organizations have more than 40 offices and 750 employees in China. APL Logistics and APL are wholly owned subsidiaries of Singapore-based NOL Group, which is engaged in supply-chain management and global transportation. Currently APLL has 10 branch offices and 29 representative offices in China

APLL is licensed for logistics activities in almost all major key markets in China. In 1990 APLL established strategic alliance with United Development Company who is engaged in construction, property management, import and export, domestic retailing and wholesale, bonded warehousing and investment consultation in Shanghai Waigaoqiao Free Trade Zone. In 2001 APL Logistics signed working agreements with two of China's leading road and rail companies — the Eastern China Railway Express (ECRE) and the Shenyang Transportation Group (STG). In June 2002 APLL Logistics set up a joint venture with Legend Group Holdings to provide supply chain services for China’s IT businesses including Import/Export, Customs Clearance, International and Domestic Air/Ocean Forwarding, Domestic transportation and door-to-door delivery. One month later APL Logistics and three other parties formed a JV named CMWAL Co., Ltd. who focuses on inbound and outbound logistics services for automakers in Chongquing, southwest of China including Ford and Suzuki.


Customer Service


APLL is licensed to engage directly in any or all of the following businesses in China:

  • Book cargo/freight space

  • Stuff/unstuff containers

  • Sign and issue cargo receipts

  • Collect freight and other charges for authorized services

  • Repair and maintain containers and other handling equipment

  • Negotiate contracts with warehousing or trucking companies

  • Arrange inland transit

APLL built its own warehouse in the Waigaoqiao FTZ in Shanghai and is permitted to direct the following activities:




  • Warehousing & Logistics Services

  • Agency for international entrepot and FTZ inter-enterprise trade

  • Trade with non-FTZ enterprises through domestic agencies authorized to import/export

  • Commercial processing

  • Business consulting services

APLL mainly focuses on the retail, auto, chemical and IT industries.


Hutchison Tibbett & Britten Logistics (HTBL)

Company Background

Tibbett & Britten Group (TB) of the UK is one of the world's largest third party logistics companies, operating retail logistics service in 33 countries. In the mid 90’s, TB formed Tibbett & Britten Anda Logistics in Shenzhen with China-Merchants Logistics.


TB established Hutchison Tibbett & Britten Logistics (HTBL) with Hutchison Whampoa, a Hong Kong company focused on property, retail and wholesale, hotels, communications and port management. HTBL is a logistics service provider for the retail industry.

Customer Service

HTBL focuses on the following services:



  • IT system solution

  • Warehouse maintenance & management

  • Transportation management

  • Value added services (packaging, packaging recovery, recycling, labeling, etc)

  • Import & export consolidation

  • Supply Chain Management

HTBL customers in China include: P&G, Warner Lambert, Jian Hypermarket, Wu Mart, Park’n Shop, etc.


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