Kuehne + Nagel plans to strengthen its market position in Asia Pacific by rapidly developing its contract logistics business in the region.

The strategy calls for accelerated expansion in regional warehousing, distribution and lead logistics capacities, particularly in China and India, together with innovative product development and process optimisation.

At present, the company's contract logistics network in Asia Pacific comprises 43 locations in 13 countries, with a managed warehouse space of 200,000 square metres.

"We plan to significantly expand our infrastructure facilities across the entire region. By the end of 2007, our total warehouse space will rise to 300,000 square metres at more than 60 locations. We envisage organic growth well above the market average and selected local acquisitions, and thereby to achieve a leading market position in this dynamic region," said Dirk Reich, executive vice president of contract logistics and member of the management board of Kuehne + Nagel International.

The move to expand its logistics capacities in the region is intended to capitalise on the growth opportunities offered by India and China, particularly as China is the driving force behind the global economy. Both nations have been achieving above-average growth as demonstrated by substantial increases in the transport volumes they have generated in recent years, a company statement.