Baltrans marches onto world stage (hktdc.com)


	Anthony Lau has built a global network with Baltrans, the logistics company he founded in Hong Kong just 24 years ago

When Hong Kong entrepreneur Anthony Lau founded freight forwarding and logistics company Baltrans Holdings Limited with two other partners in 1982, his vision was to build it into a multinational corporation.

Twenty four years later, the Hong Kong-based firm has developed into an enviable network spanning across Asia Pacific, Europe, Middle East, Africa and North America. It has certainly stamped its mark on the global stage and boosted its global freight forwarding and logistics presence to cover an expanding network of 58 cities.

Baltrans' profit for the half year ended January 2006 rose nearly 50 per cent to HK$71 million (US$9m) from HK$47 million (US$6m) a year earlier, as turnover rose to HK$2.05 billion (US$263m) from HK$1.84 billion (US$236m).

Mr Lau, Baltrans' visionary Chairman and CEO, said a 100 per cent increase in sales in two to three years was "an achievable target" given the acquisitions the company has made.

Rapid expansion

For the past 18 months, Baltrans has been on an aggressive buying spree worldwide. In July, Baltrans acquired Swedish company Gothenburg Shipping Logistics, one of the key players in the forwarding and transportation industry in Sweden and the Nordic region. Earlier, Baltrans had picked up the remaining 25 per cent stake from the minority shareholders in JLS, Baltrans' subsidiary company in the UK. It opened offices in Amsterdam and Rotterdam in the Netherlands, acquired Dubai-based freight-forwarding company Outlook Logistics and the controlling interest in Clover Cargo in South Africa, and also picked up the remaining 10 per cent of its Chinese mainland unit, Baltrans China.

"We will continue to expand our global network through organic growth and acquisitions," said Mr Lau, adding that Baltrans is eyeing new markets in Italy, Spain and France. "In future, we are looking at the emerging markets of Latin America, Pakistan, Bangladesh, and looking to expand further into the US."

Mr Lau said the deal that transformed Baltrans into a global player was the acquisition of the Jardine Logistics Group in 2003, which led to a strategic global partnership with one of Japan's largest trading group, Mitsui Group. "It was difficult for a non-Japanese company to penetrate the Japanese market but the partnership with Mitsui allowed us to do that. At the same time, Mitsui needed a strong player to grow its business in China so it was a win-win situation."

Outstanding achiever

In 2005, Mr Lau received the Outstanding Achievement Award at the first Logistics Awards in Hong Kong. He was lauded for his acquisition of the Jardine Logistics Group and the turnaround of its worldwide operations within 18 months, which was described as "one of the most widely acclaimed examples of management excellence in the industry".

He said: "I was very pleased to see that the business community and the public at large realise the important contribution of the logistics industry. After all, logistics is one of the four main economic pillars of Hong Kong. I have spent my working life in this industry so I was very touched on behalf of the industry."

He is adamant that globalisation offers challenges and opportunities to the logistics sector in Hong Kong. "Way back in the 80s, we had no way of knowing the magnitude of the logistics demand created by China's manufacturing sector. A logistics company needs a strong international network to succeed. Hong Kong's catchment area is the Pearl River Delta (PRD), the manufacturing powerhouse of the world nowadays. With the opening up of new ports and airports in PRD, our businesses would be eroded if we do not branch out to PRD. Now, the Yangtze River Delta is coming up so we must expand our network to Shanghai, Beijing and Qingdao."

Global player

Competition is rife in the logistics business but Mr Lau said there are still lots of opportunities. "In the early days, Hong Kong's open economy attracted world-class logistics companies so we are used to competition. The logistics business is a high volume, low margin business but a company with the right people, proper training, strong overseas support and the right conviction would still succeed."

Baltrans has indeed proved that. The company's services have reached far and wide on the global stage, and with them, the reputation of Hong Kong as a key logistics hub linking major cities globally.