Sinotrans, China's largest logistics company, reported a 30 percent increase in net profit to US$114.57 million in 2007, due to strong growth in freight forwarding, storage and terminal services.
Turnover was up 20.7 per cent to $5.54 billion.
Earnings from freight forwarding business increased by 23 percent, port storage by 24 percent and terminal services by 16 percent. Freight forwarding accounted for 41 percent of its earning, terminal services 21 percent and port storage business 21 percent. Express services, accounting for 25 percent of its earnings, saw a 22 percent drop.
The US economic slowdown hurt marine transport and express services at Sinotrans. The company has already adjusted some of its maritime routes and services and hopes to improve their bottom line. In the next three years, Sinotrans aims to invest $1.42 billion to build up its logistics and transport services empire.
The company wants to acquire warehouses, depots and terminals along the Yangtze River from its parent company. It said it would acquire assets in Shanghai, Zhejiang, Jiangsu, Tianjin and overseas in the next three years after taking over $156.75 million worth of assets - ranging from warehouses to stockyards and terminals - from Sinotrans Group in December last year.
The company will expand its two weak divisions, marine transport and air freight, through mergers and acquisitions.
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