Global logistics operator Agility aims to achieve revenue of US$1 billion in Greater China within three to five years and has set up an aggressive plan to make it happen.
The logistics provider has brought in the former China head of BAX Global and Schenker, James Gagne, to lead its mainland strategy.
"Agility is already well positioned in China бн but we want to aggressively grow our mainland business. This is more than achievable," he told reporters in Hong Kong today.
Gagne said to achieve the planned expansion, Agility will need a robust ground transportation network and both organic and acquisitive growth.
"We will grow organically, especially in verticals such as retail, chemicals and high tech, and on the acquisition side we will focus on 'tuck ins', companies that can easily be incorporated into our business model. The emphasis will be on contract logistics and ground transport."
Gagne, who has 12 years of logistics experience in China, outlined some trends Agility had noticed. Many mainland companies were going global and with the rapid expansion in overseas markets the companies required strong support from their logistics providers.
He said the weak US dollar was leading to increasing US exports to China. With increasing consumer spending further growing the mainland's imports, the need for an efficient distribution channel to Tier 2 and Tier 3 cities would become more important.
Asked where Agility's acquisitions would be made, Gagne said: "The Yangtze River and Pearl River deltas and Northern China regions pose opportunities that fit our business model.
"We are looking at companies with a presence in more than one city - provincial heroes rather than national heroes."
Agility is currently handling around 120,000 tonnes of airfreight out of Hong Kong and China every year and about 120,000 TEUs of ocean cargo.
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