GERMANY-BASED Schenker Logistics plans to expand aggressively in China after joining forces with Bax Global.
Schenker, a unit of Deutsche Bahn AG, the state-backed major international transport and logistics service provider, expects to increase its business coverage to at least 100 cities in China in five years, up from 38 at present, the company has said.
"Acquisition of Bax Global gives us more competitiveness in the fast growing China market," said Caraka Keung, Schenker's China management assistant, during Logistics World, an international logistics fair that just concluded in Suzhou, Jiangsu Province.
"Schenker is strong in the European market while Bax Global is active in the North American market," she said.
In addition Bax Global's strengths in vendor management inventory and contract logistics will help Schenker develop into a supply chain management solution provider complete with a full range of services, she said.
The company said integration of the two brands in China will be completed this year. Schenker will remain the sole brand.
"China is the focus of our expansion," Keung said. "Its huge market potential, the dynamic purchasing power which is fueling imports are creating fast growing demand for high quality logistics services."
Clients will need consulting services to improve their management supply chain, instead of only using one of our services, as is often the case currently, she added.
Schenker is the exclusive supplier of freight forwarding and customs clearance for the Beijing 2008 Olympic Games.
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