Kuehne & Nagel's managing director (Asia Pacific) Andy Weber says Cepa gives the  global logistics firm a competitive edge over rivalling companies

Managing director of Kuehne & Nagel (Asia Pacific) Andy Weber said the breakthrough, a result of the Closer Economic Partnership Arrangement or Cepa, would put the "company at least two years ahead of rival firms" which are unable to obtain similar benefits until ownership restrictions are lifted with WTO in 2005.

"Cepa has given Kuehne & Nagle a competitive edge over rival firms and allow us to tap into the golden opportunities arising from the booming mainland market. With the Class A licence, the company is now able to own 100 per cent of its operating subsidiary in Shanghai and we can also extend the licence status to all our offices in China after one year," said Mr Weber. 

With the new licence, Kuehne & Nagle is also able "to directly provide customers with a full range of international forwarding and integrated logistics services without further restrictions."

"Another significant advantage is that the company has the authority to invoice clients for the domestic services it provides in China. Flexibility is therefore greatly enhanced," added Mr Weber.

Cepa accelerates growth 

Kuehne & Nagel Ltd was incorporated in Hong Kong in 1965 and is the headquarters for the Asia Pacific region and also from where it drives its growth in the mainland. "China is regarded as the growth engine within the company. Cepa allows direct involvement and this allows the company to accelerate growth in the provision of high-value integrated logistics solutions," said Mr Weber.

Headquartered in Switzerland, Kuehne & Nagle has a global network of 600 offices in 96 countries worldwide. 

Cepa which came into effect on 1 January 2004 grants easier access to mainland markets for Hong Kong-made products and Hong Kong-based companies. It covers 18 service sectors and any nationality company can apply if it is incorporated in Hong Kong, has operated for 3-5 years (depending on sector), pays Hong Kong profits tax and employs 50 per cent of its staff locally. More details in Cepa.

As of 30 April, 242 Hong Kong-based services companies have received Cepa licences, of which 132 companies are in the transport and logistics services. 

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