Kuehne + Nagel Rapidly Expanding in China

Following its status in becoming the first global logistics provider to operate a wholly owned enterprise in China under CEPA, Kuehne + Nagel has substantially expanded its integrated logistics business in the country. With the opening of two logistics centres in Shanghai recently, the company’s comprehensive network in China has been rapidly extended to 18 locations.

Situated in Baoshan and in the Waigaoqiao Free Trade Zone, Shanghai’s most modern logistics districts, the new facilities measuring a combined warehousing capacity of 8,800 square meters feature Kuehne + Nagel’s globally standardized warehouse management technology as well as advanced security systems, the latest of their kinds in the logistics industry. A further expansion in operating capacity is planned for 2005 when the second phase of the construction of Baoshan Logistics Park will be completed.

Andy Weber, Managing Director of Kuehne + Nagel (Asia Pacific) Management Ltd., said “The investments underline our long-term commitment to the logistics development of China and the Asia Pacific region at large. By bringing in world-class best practices, sophisticated technologies as well as quality-assured business processes, we take pride in constantly setting new industry standards.”

Whilst complementing the distribution hub in the Waigaoqiao Free Trade Zone, established for the handling of vendor managed inventory services, the warehouse in Baoshan aims to support customers in the automotive, retail & durables and hi-tech sectors. The bonded complexes will enable the achievement of considerable synergies and the provision of value-added services at one strategically positioned location, facilitating cost and process optimization along the entire supply chain.

“In these multi-user sites, Kuehne + Nagel will ably integrate its contract logistics capabilities with those of international forwarding to maximize values for its customers. It is our strategic focus to expand the company’s network coverage and infrastructure in China to meet growing customer needs arising from this booming market,” continued Weber.

As part of its development plan, the company’s operating subsidiary in Shanghai has moved to a new premise with an office space of 2,600 square metres in early August. To further expand its business scope and to strengthen its customer service activities, Kuehne + Nagel plans to open seven more branch offices over the next 18 months. Viable locations are Wuxi, Wuhan, Chengdu, Chongqing, Xian, Zhongzhan and Dongguan.

In 1979, the Swiss logistics provider became the first international forwarder to open a representative office in Beijing. Today, Kuehne + Nagel is represented at 18 locations in 15 cities of China, including Beijing, Dalian, Fuzhou, Guangzhou, Hong Kong, Macau, Nanjing, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Tianjin and Xiamen.