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Shanghai Jin-Hai Jet Air Logistics Co (JJAL) will provide a warehouse which will act like a 'parts bank' for a German cosmetics company in Shanghai distributing cosmetics products to 47 mainland cities from March 9.

 JJAL vice-president John Ma said the company, which was a pioneer in this field in Shanghai, had a guaranteed 180 standard-grade pallets per month of business from the cosmetics company.

 This had the potential to grow to 850 pallets.

 JJAL would pick up products from a factory production line and deliver them to its 850 square metre warehouse, which would act as a parts bank.

  The products would be packed and delivered nationwide.

 As the business expanded, the warehouse space was expected to increase to 2,400 sq m.

 JJAL will market its services to other companies with similar needs in the mainland.

 Mr Ma said JJAL also would focus on transporting oversize and overweight products normal freight-forwarders could not handle.

 In this regard, JJAL has carried out turn-key projects for foreign beer-makers by providing transport, packaging and installation of brewery equipment.

 Last year, JJAL transported a cooler weighing 185 tonnes and other parts which were as long as 32.5 metres for a beer manufacturer from Shanghai to Suzhou to build a brewery.

 JJAL used a 850 tonne barge to transport these parts for the US$13 million brewery project for a New Zealand company.

 Mr Ma said the first phase of that turn-key project would end this month and the second phase would begin in March.

 JJAL had recorded about 35 per cent growth in its air-freight business last year and 22 per cent growth in its sea-freight business, he said.

 Jet Air International Group, has a 45 per cent stake in Jin-Hai Jet Air International Forwarding Co (JHJ), which wholly owns FFAL.

 Group chairman Peter Yu Kam-ching said Jet Air had been cushioned from the impact of the Asian financial crisis because most of its dealings were in US dollars.

 Edward Reedy, senior vice-president for North America of Jet Air Despatch, said he expected Jet Air's business to grow by about 40 per cent in the United States this year. The group served about 50 US cities, but had plans to open offices in Atlanta and Miami later this year, he said.

 Mr Reedy, who brings more than 30 years of experience in the freight-forwarding business to Jet Air, said he expected the US to import more from Asia because the Asian currencies had devalued.

 This provided huge transportation opportunities, he said.



Warehouse becomes depot for cosmetics distributor