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SITC Logistics Limited is being created through the completed merger of two transport and logistics groups in a bid to help consolidate mainland China's fragmented distribution market.
"The China market is facing huge distribution problems because it is fragmented and lacks the necessary IT support and credit system, and faces numerous hurdles due to lack of uniform rules and regulations among various provinces and districts," said Yang Shaopeng, chairman and CEO of SITC Logistics.
SITC Logistics will begin operations from the New Year after the logistics unit of Qingdao-based SITC Maritime (Group) Co., Ltd and Beijing-based New Times International Transport Service Co Ltd. (NTS) are fully integrated.
"After the merger is complete, we will start marketing our IT-supported supply chain management services to big multinational companies to help them reduce their logistics costs," Mr Yang said.
The company expects this move, combined with SITC Logistics' domestic and international air and sea freight forwarding, distribution and warehousing services, to boost revenues and the business "tremendously".
"As a leading integrated logistics provider, we can handle our customers' product mix, backed by a good optimisation system, to drastically reduce their costs," said Mr Yang.
SITC Logistics forecasts it will handle more than 110,000 tons of airfreight in 2007, up from an estimated 60,000 tons in 2006.
Its sea freight throughput is expected to rise to over 210,000 TEU next year, up from an expected 180,000 TEU in 2006.
SITC Logistics is headquartered in Shanghai with a well-established network covering China's main cities and Japan. Its logistics and purchasing volume rose 15.3 per cent year on year in the first six months of this year, according to the China Federation of Logistics and Purchasing.
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