The China Logistics Market Heats Up:
Major Acquisitions and Investments by Integrators and
3PL’s.
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to Research & News)
• FedEx announced on January 24th, 2006 that it
will pay $400 million to buyout of Datian W. Group’s
international express joint venture share as well as
its DTW branded domestic China express business. Deal
will be completed by June 1st, 2006, at which time FedEx
will posses and organization of 6,000 employees in 89
cities throughout China.
• FedEx also plans to invest an additional $150
million for a hub in Guangzhou that will open in 2008.
• December, 2005, TNT purchased HOAU Logistics
Group, a Chinese trucking 3PL franchise with 1,100 office
locations, 3,000 trucks and 12,000 employees. Total
value of transaction and how their franchise operations
will be integrated. Most of HOAU locations are franchises
of which HOAU only holds a 20% ownership.
• June 17th, 2005, YellowRoadway announced their
acquisition of a 50% stake in JHJ, a Shanghai based
freight forwarder, for $45 million.
• On Jan. 1st, 2005, UPS acquired operations in
23 locations from Sinotrans, their former service partner,
for $100 million.
• UPS plans to open a new Shanghai hub in 2007
• CH Robinson announced on June 18th, 2004 that
it has acquired Dalian Dacheng Shipping Agency Co.,
a local Chinese freight forwarder with seven offices
and 90 employees for an undisclosed amount. Robinson
did say they expected Dacheng’s gross revenue
was expected to generate $12 million in twelve months
following acquisition.
• DHL at the end of 2003 began an investment program
of USD273 million over five years. Yearly sales growth
for DHL has averaged 35% to over 45% per year and continues
in this breakneck expansion speed.
• DHL bought 5% stake in Sinotrans’ public
offering. Sinotrans is DHL’s long term express
services JV partner.
