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Home » China Merchants Group Focuses on Investing in Mainland's Logistics Sector

China Merchants Group Focuses on Investing in Mainland's Logistics Sector

January 22, 2014
South China Morning Post

"There will be lots of mergers and acquisitions in the logistics industry in China as oversupply will lead to industry consolidation," said Fu, also the chairman of Hong Kong-listed China Merchants Holdings (International) and China Merchants Bank, on the sidelines of the Asian Financial Forum.

There are over 100,000 logistics players on the mainland but there is a lack of major players with advantages of scale.

China Merchants' logistics arm will expand its services to upstream and downstream customers, Fu said.

Over the past 20 years, China Merchants has established a network to support nationwide sales outlets for brands like Tsingtao Beer, Coca-Cola and Procter & Gamble.

It is now aiming to further develop supply chain services for manufacturers on the mainland as well as last-mile delivery services, which have received a big boost because of the enormous growth of e-commerce.

With the recent acquisition of a minority stake in SF Express, one of the major courier companies on the mainland, China Merchants is seeking to leverage the e-commerce boom.

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KEYWORDS 3PL Business Strategy Alignment China Global Logistics Global Supply Chain Management Global Trade Management international trade Logistics logistics & supply chain logistics management: global logistics Logistics Outsourcing logistics services South China Morning Post Supply Chain Analysis & Consulting Supply Chain Management Transportation & Distribution Transportation Management
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