Kuehne + Nagel is observing rapid growth in its contract logistics business in the Asia-Pacific region. This is the result of accelerated expansion in regional warehousing, distribution, and logistics efficiency, particularly in China and India, as well as a strategy based on the development of innovative products and optimization processes. These moves represent the company’s concept of strengthening its position in this market as well as globally.
Kuehne + Nagel began implementing its expansion plan for contract logistics operations in the Asia-Pacific region in 2005. Since then, activities in this business field have been significantly strengthened through the signing of major contracts and the creation of new opportunities for its customers.
Currently, the company’s contract logistics network in the Asia-Pacific region includes 43 branches in 13 countries, including the management of 200,000 sqm of warehouse space.
Dirk Reich, EVP Contract Logistics and Member of the Management Board of Kuehne + Nagel International AG, said at a press conference in Hong Kong: – By achieving our goal of offering customers in the Asia-Pacific region high-quality logistics service, we are planning significant expansion and the development of our infrastructure capabilities throughout the region. By the end of 2007, our total warehouse space will increase to 300,000 sqm in over 60 locations. We anticipate high organic growth well above the market average and have chosen local acquisitions to thereby achieve a market leader position in this dynamic region.
– China is the driving force of the global economy, and India is demonstrating growth above the average supported by a perfectly balanced trade system. – said Andy Weber, Managing Director of Kuehne + Nagel (Asia-Pacific) Management Ltd. – The attractiveness of these two markets is confirmed by the significant growth in transport volume generated. By strategically strengthening our presence in this market in the future, we intend to capitalize on the growth opportunities offered in this market.
Currently, the company’s contract logistics network in the Asia-Pacific region includes 43 branches in 13 countries, including the management of 200,000 sqm of warehouse space.
Dirk Reich, EVP Contract Logistics and Member of the Management Board of Kuehne + Nagel International AG, said at a press conference in Hong Kong: – By achieving our goal of offering customers in the Asia-Pacific region high-quality logistics service, we are planning significant expansion and the development of our infrastructure capabilities throughout the region. By the end of 2007, our total warehouse space will increase to 300,000 sqm in over 60 locations. We anticipate high organic growth well above the market average and have chosen local acquisitions to thereby achieve a market leader position in this dynamic region.
– China is the driving force of the global economy, and India is demonstrating growth above the average supported by a perfectly balanced trade system. – said Andy Weber, Managing Director of Kuehne + Nagel (Asia-Pacific) Management Ltd. – The attractiveness of these two markets is confirmed by the significant growth in transport volume generated. By strategically strengthening our presence in this market in the future, we intend to capitalize on the growth opportunities offered in this market.
The key to implementing the development plan is to increase the scope of services to meet a wide spectrum of customer needs and adapt them to the global supply chain. Expanding the operation of global warehouse management system standards in this region, as well as implementing increasingly sophisticated and specific management system solutions, e.g., for the automotive, high-tech, pharmaceutical, and FMCG sectors, through specific service for selected market niches such as aviation or hotel logistics. This strengthening of the service portfolio will allow Kuehne + Nagel to optimally support customers and meet individual supply chain requirements.