Sinotrans, one of China’s leading transport and logistics group and a DHL joint venture partner, isin talks with river shipping company China Yangtze Transportation Group to create a new national
logistics giant.In a brief statement, Sinotrans Ltd, the Hong Kong-based listed subsidiary of the SinotransGroup, said this week that its parent company “is considering a possible merger” with China YangtzeTransportation Group, and is currently “in discussions on the key aspects of the possible merger”.
According to reports from China, a merged group could operate under the name China LogisticsGroup and would be a national logistics leader with activities ranging from express (through theDHL-Sinotrans joint venture), freight forwarding and warehousing to river and ocean shipping. Theactivities could then be re-organised between Sinotrans Ltd and the separate, listed companySinotrans Shipping Ltd.
* Meanwhile, DHL is facing problems expanding in China, according to an article in theFinancial Times Deutschland. The newspaper cited CEO Frank Appel as saying that the group wanted toexpand domestic deliveries in China through local partners but it was proving difficult to findsuitable companies.
DHL, which had invested some $600 million in the country over the last five years, will opena new North Asia air hub in Shanghai in 2010 and is also expanding its main hub at Hong Kong.
