| Jinjiang joins Yellow Roadway in logistics JV |
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| Thursday,June 30,2005 Posted: 09:24 BJT(0124 GMT) China Daily |
BEIJING, June 30 -- Yellow Roadway Corporation (YRC), one of the largest transport service providers in the world, signed a strategic agreement yesterday with Shanghai-based Jinjiang International Holdings Co Ltd (Jinjiang International).
"YRC has set up a logistics joint venture (JV) with Shanghai Jinjiang International Industrial Investment Co Ltd (Jinjiang Investment), a subsidiary of Jinjiang International, in a drive to advance China's logistics development," said William D. Zollars, YRC's president and chief executive officer (CEO), during yesterday's agreement-signing ceremony.
The agreement comes hot on the heels of strategic development plans issued by the State Council and Shanghai municipal government on promoting global transport solutions and expanding transport capabilities in China.
The affiliated companies of Jinjiang International will transfer 50 per cent equity worth US$45 million of JHJ International transport Co Lt (JHJ), the freight forwarding subsidiary of Jinjiang Investment, to YRC. Jinjiang International will give their full support to the 50-50 JV between Jinjiang Investment and YRC, according to Shen Maoxing, vice-president and chief operating officer of Jinjiang International.
"As China's most vibrant area, Shanghai is speeding up its efforts to develop into a global logistics and transport centre. YRC is extremely proud to be involved in this new and exciting phase of its rapid development," said Zollars.
"YRC is committed to providing quality services to meet the increasing demands from China's logistics and transport industry," he added.
YRC provides a wide range of asset and non-asset-based transport services integrated by technology. Throughout the world, the company has 1,000 branches and more than 70,000 staff members.
The portfolio of brands provided through YRC subsidiaries represents a comprehensive array of services for the shipment of industrial, commercial and retail goods both home and abroad.
"The marriage makes it possible for YRC to provide our existing customers seamless logistics services globally which is in urgent need," Zollars said.
Jinjiang Investment is also interested in developing a modern logistics system in the long-term, Shen said.
"Thanks to the common goal YRC and Jinjiang Investment have, the marriage between YRC and Jinjiang Investment is undoubtedly wise and timely. We do consider Jinjiang Investment as YRC's best partner in the Chinese mainland," Zollars said.
After the establishment of the JV, JHJ, one of the best import-export platforms in China, will play a very important role in the strategic co-operation.
JHJ will handle the international transport activities of all target customers, which will bring the company significant business opportunities and an enhanced competitive advantage.
In addition, Jinjiang Investment will establish a third-party logistics (3PL) JV with YRC by leveraging the latter's established business model and advanced capabilities to provide 3PL services to local and foreign companies in China.
The 3PL JV will adopt the latest information technology to build a centralized information platform for global customers.
Information will be fully exchanged on this platform to increase loadability, energy savings, and visibility on shipments, reduce inventory, transit time and increase returns on investment for clients.
(Source: China Daily)
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