Growth-oriented logistics development in the Asia Pacific region

Kuehne + Nagel is rapidly developing its contract logistics business in the Asia Pacific region. Accelerated expansion in regional warehousing, distribution and lead logistics capacities, particularly in China and India, together with a strategic focus on innovative product development and process optimisation, represent the cornerstones of the company’s plan to enhance its market position in the Asia Pacific region, as well as globally.

Kuehne + Nagel rolled out its expansion plan for contract logistics in the Asia Pacific region in 2005. Since then, the business unit’s activities have considerably strengthened, with a series of significant business wins and the opening of new facilities. At present, the company’s contract logistics network in Asia Pacific comprises 43 locations in 13 countries, with a managed warehouse space of 200,000 sqm.

Dirk Reich, EVP Contract Logistics and member of the Management Board of Kuehne + Nagel International AG, said at a press conference in Hong Kong today, “To achieve our objective of offering customers in Asia Pacific high-value logistics services, we plan to significantly expand our infrastructure facilities across the entire region. By the end of 2007, our total warehouse space will rise to 300,000 sqm at more than 60 locations. We envisage organic growth well above the market average and selected local acquisitions, and thereby to achieve a leading market position in this dynamic region.”

“China is the driving force behind the global economy, and India demonstrates above-average growth backed by a well balanced composition of trades“, said Andy Weber, Managing Director of Kuehne & Nagel (Asia Pacific) Management Ltd. “The attractiveness of these two markets is confirmed by the substantial increase in transport volumes generated. By strategically strengthening our presence in the region further, we are going to capitalise on the growth opportunities offered in these markets.”

Key to the development plan is an enhanced service portfolio to cover a wide spectrum of needs and applications along the global supply chain. This extends from the implementation of Kuehne + Nagel’s globally standardised warehouse management systems across the region, and the implementation of ever more sophisticated industry-specific supply chain management solutions, for example for the automotive, high-tech, industrial goods, pharmaceutical and healthcare, as well as retail and FMCG sectors, through to specific services for selected niche markets, such as aviation and hotel logistics. This enhanced portfolio will allow Kuehne + Nagel to optimally support customers in meeting their individual supply chain requirements.