China's burgeoning car and consumer electronics markets coupled with trade growth in Asia would help fuel a boom in sales revenues for logistics company Dachser, the firm's regional head in Hong Kong said yesterday.
Global revenues from the firm's air and sea logistics division are targeted to double to €2.2 billion (HK$22.3 billion) by 2017 under Dachser's five-year plan, Edoardo Podesta, managing director of Dachser Far East, said.
Air and sea contributed €1.1 billion to group revenues of €4.2 billion last year, with the balance coming from Dachser's European and food logistics divisions.
Podesta said Dachser Air & Sea Logistics would expand its presence to 49 countries in the next five years, up from 28 last year. The number of air and sea logistics branch offices would grow from 141 to 220 by 2017.
Dachser entered Vietnam and Malaysia this year after forming joint ventures with local partners. He said the Vietnam operation, whose majority shareholder is Dachser Far East, would grow next year, with an office in Hanoi by the second quarter to add to the one in Ho Chi Minh City.
The next target would be Indonesia, and then an office in Myanmar in "two or three years". The group has €1.3 billion to invest over the next five years, although a large slice is earmarked to expand its European overland transport network.
Podesta said revenue growth would be driven by acquisitions, organic expansion that would double airfreight volumes, and the firm's increased focus on ocean freight, including expansion in the transpacific trade.
The firm has just won an ocean freight deal from a European lift manufacturer to handle all equipment exports from Shanghai, Tianjin and Guangzhou to other Asian countries. Dachser Far East also has a contract logistics deal with a German carmaker to collect parts from its mainland suppliers for delivery to its factory in northern China.
Podesta said Dachser established a 10,000 square metre distribution centre in Wuhu, Anhui, for Continental, a German parts company that supplies components to mainland car plants.
He said the mainland car market was a growing business with "a lot of opportunity. It's an industry that will remain very solid in the next few years". Consumer electronics also offered "large growth but with much smaller volume".