Cutting edge hardware and broad market coverage is putting Kerry Logistics on track to be the logistics expert for Asia
Vincent Wong says Hong Kong is the best location to headquarter the vast Kerry network

Kerry Logistics (KL), one of the fastest-growing third party logistics (3PL) service providers in the Asia-Pacific region, has bolstered its strength in the Chinese mainland by acquiring 70 per cent of the state-owned enterprise EAS International Transportation.

 

KL, a wholly-owned subsidiary of Hong Kong-listed Kerry Properties and a member of the Kuok Group, says the acquisition is a strategic step to strengthen its coverage ahead of the further opening of the China market in 2006. "It will enable the group to further expand its business in China and strengthen its pan-China logistics network," Kerry Properties' chairman Ang Keng-lam said.

 

The group has also confirmed its commitment to Hong Kong as the best strategic location to oversee the Kerry network. Having a Hong Kong headquarters is pivotal to the company's goal to be the pre-eminent 3PL for Asia, joint managing director Vincent Wong said.

 

"We still believe Hong Kong is the centre of the region. Hong Kong has many advantages: because of its location, convenient communications, international transport links and as a trading centre. We want to be the logistics expert for Asia, not just for China, and Hong Kong is the best location from which to monitor our operations throughout the region."

 

Rapid rise to success

 

In just over four years, KL has powered forward to serve over 15,000 companies, many of which are Fortune 500 multinational corporations. It operates from 150 cities in 15 countries worldwide, generating revenues in excess of HK$5.5 billion (US$707 million). The business covers most market segments with a full range of supply chain management services supported by state-of-the-art logistical hardware.

 

Mr Wong said the EAS merger was a quantum leap in the company's development, providing a significant foothold into more than 120 coastal and inland cities.  With the excellent geographical coverage the merger delivers, the company can now offer real pan China solutions to its customers in over 1,100 cities in 32 provinces.

 

He said the full strength and synergy of the KL-EAS merger would be realised over the next 12 - 18 months as the companies and facilities are progressively being integrated.

 

"At the same time, 'Kerry Logistics' will be further developed as one of the super brands of Asia," he said.

 

Winning combination

 

While Beijing is hitherto the head office for Kerry Logistics in China, Mr Wong said the group's headquarters would remain in Hong Kong to oversee the entire network.

 

Mr Wong described the EAS acquisition as "definitely a win-win merger", with EAS being a strong domestic player and Kerry Logistics providing a very effective overseas network. This winning combination should prove especially powerful in bidding for logistics contracts for the Beijing Olympics in 2008.

 

"This acquisition is not the end of the story as we expect more capital will be injected into Kerry EAS, particularly for building additional logistics centres which are high in demand. It is still early yet for Kerry Logistics to really attain the status of a true expert in China."

 

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