Annual Report 2010 (PDF, 5.2MB) - Panalpina Annual Report 2012

Reporting Regions
Asia Pacific
28
Expanding again
The Group’s Asia Pacific region, with its outstanding growth potential, represents
one of Panalpina’s most important future markets. The company boosted its market
share significantly and met its targets.
Areas: 5
India, East Asia, Southeast Asia,
Greater China, Oceania
Net revenue: CHF 1,270 million
Headcount: 3,063
China: Growth in all segments
As the global economy recovered, Chinese companies
saw their order books fill up again from the end of 2009.
This trend was also evident from the volume of goods
forwarded. Both Air Freight and Ocean Freight recorded
significant rises in volume.
China’s economic activity is increasingly shifting away from
the major coastal cities towards the interior of the country.
Panalpina is adjusting to this change and to the associated
logistical challenges. The company’s strategy does
not focus on individual products such as Air Freight, Ocean
Freight or Road Freight, but rather on putting together tailored
end-to-end solutions. Indeed, Panalpina has observed
growing demand for integrated logistics solutions in the
Chinese hinterland itself.
New subsidiary in Chongqing
In keeping with its “Go West” strategy, Panalpina opened
a subsidiary in Chongqing, a major economic center for
motor vehicle production and heavy industry, in November
of the year under review. The city, which has a population
of 31.4 million, is situated at the confluence of the Jialing
and Yangtze rivers and forms the heart of an extensively
industrialized region. Its location at the hub of the waterways
from eastern China and the trade routes from Tibet
and Myanmar makes the port exceptionally important
economically. In the future, Panalpina intends to meet the
rapidly expanding demand for single-source logistics services
in this region by providing seamless transport chains
that make increased use of rail and ship.
China – Taiwan: Trade relations normalizing
In June 2010, China and Taiwan finalized a landmark trade
agreement designed to strengthen their economic cooperation.
When implemented, the Economic Cooperation Framework
Agreement (ECFA) is expected to help institutionalize
and normalize trade relations between Taiwan and China.
The ECFA, which is a kind of free trade agreement, envisages
the abolition of import and export duties on hundreds
of products traded between the two countries. In addition,
the agreement guarantees Taiwanese suppliers access to
the Chinese services sector.
Strategic partnership with the Shanghai Lingang Group
In November 2010, Panalpina signed a strategic partnership
with the Shanghai Lingang Group. This partnership
is designed to provide a comprehensive bonded warehouse
solution that includes pick and pack, order picking quality
checks and U-turn shipments.
As a first step on the way to offering one-stop logistics
services for customers in the Yangshan free trade port area,
Panalpina had already reached agreement with Lingang
on the rental of 20,000 square meters of warehouse space.
The Shanghai Yangshan business location will play a central
role in Panalpina’s plans to expand its logistics services.
Developing road haulage
Panalpina is steadily changing from a product-oriented
company to an organization that focuses on offering
appropriate solutions to different customer segments. Its
longterm goal is to offer global supply chain management.
Panalpina therefore wishes to expand its presence
in growth markets, and the granting of trucking licenses
in Shanghai is already smoothing the way for Panalpina’s
efforts in this direction. The company does not seek
to procure trucks, but rather – in line with the asset-light
strategy – to cooperate with local carriers.
Panalpina Annual Report 2010