Kuehne + Nagel last week outlined its plans to become both a force in contract logistics and freight forwarding in Asia. This will largely focus on what it perceives as the two largest potential markets – China and India.

The company already has 21 offices and warehousing facilities in China. Its presence in India is more modest. However the company is planning to increase its 200,000 sqm of warehousing space in Asia by 50% by the end of 2007.

Speaking in Hong Kong, Dirk Reich, Vice President of Contract Logistics at K+N, said the expansion will be achieved through a mixture of organic growth and local acquisitions. Overall it is looking to expand its market share in all types of transport and warehousing. The markets that it is focusing on appear fairly broad, including automotive, high tech and pharmaceuticals as well as K+N strengths such as aviation logistics.

Despite its significant presence in China, K+N lags other major western LSPs. DHL Logistics has a very strong presence both in terms of its sea forwarding joint ventures in Shanghai as well as its wholly owned operations. Others, for instance CEVA's Anji-TNT, are clear leaders in sectors such as automotive. K+N also does not have the physical infrastructure that the Express Parcel carriers are already advanced in developing in the China.

India is another story. Its transport infrastructure remains so undeveloped that it is difficult to see how a company such as K+N will expand so rapidly. Therefore it will be interesting to see if K+N can effectively realise its objectives in such a short time-frame.