Logistics firm Kuehne-Nagel states the Closer Economic Partnership Arrangement (CEPA) has been a boon. The firm was among the first batch of overseas logistics service providers granted the status of Hong Kong service provider under the free-trade pact, thus gaining greater access to the fast-growing mainland market.

Kuehne-Nagel was granted a license in 2004 to operate a wholly-owned subsidiary in Shanghai.

China Daily reported Kuehne-Nagel (Asia Pacific) managing director Andy Weber had said CEPA had helped the company significantly expand its presence on the mainland.

The company began its mainland operations in 1979 with a representative office. In 2004, it became the first beneficiary to receive a Class A forwarder’s license.

With the help of CEPA, the company has opened a new branch on the mainland every two to three months. It now has 32 branches and plans to have 42 in the next 18 months.

Andy Weber said the company had no plans at present to acquire mainland logistic companies. He said, ‘It is difficult to find appropriate targets because the market is too fragmented, though we don’t rule out that possibility in the future. But for the time being we are still counting on organic growth.

‘The market has enormous room to explore. We expect it will grow 20% annually over the coming years.’ The illustration is of a cycling shirt with the company’s logo. Quite the article.