In January China’s two leading private transport and logistics firms will merge to create what might well be the country’s biggest comprehensive logistics service provider.

Qingdao-based SITC Maritime, China’s largest private shipper (one of its ships is shown in the illustration), and Beijing-based New Times International Transport Service, the biggest airfreight forwarder in export terms, have nearly merged. The joint company, Shanghai-based SITC Logistics, will have total assets valued at RMB one billion (US$127.7 million).

Yang Shaopeng, chairman and chief executive officer of SITC, said, ‘China’s logistics market is rather fragmented and lacks proper information support and a credit system. We hope to combine resources at the two companies to build the firm into the largest private logistics service provider to tap into a largely unmet demand in China.’