Which factors are currently driving the logistics business? The key thing now is the coverage both geographically and in terms of activities. Customers, whether importing or selling, want a company that can provide all the services at least on a regional basis. I would also say that IT is a major driving force. Clients want systems that give full transparency, so they can know at a particular moment whether their shipment is in production, storage, in transit or on the retailer's shelf. In future, logistics will become even more of a knowledge industry. How do you see Hong Kong's future role in the industry? I am more confident of Hong Kong's position as a logistics hub for air than for sea. Speed is the essence for air cargo and the only way to be sure of shipping quickly is by using passenger aircraft with the necessary frequency. It takes time for any airport to build up the number of airlines and destinations that Hong Kong already has, which make it possible to be a hub for a large part of China. For sea containers it is more difficult. The costs are higher than in mainland ports and there is not much difference in service quality, so competition will be extremely keen. Therefore, Hong Kong needs to focus not just on the physical part of the logistics business, but also on being a 'head office' for the mainland and Asia. Some of the profit will then flow back here. What personal challenges does your job entail? This industry is very much a hands-on job and certainly not nine-to-five. It is hard work and needs a lot of lateral thinking, as well as diagnostic skills to devise solutions and package them in a way that is acceptable to clients and allows us to make money. The environment is very competitive and you need to add value continuously, otherwise customers will leave you. After the EAS takeover, how did you restructure the business in China? We started by learning what they had, which took us a few months, and at first left everything as it was. Of course, there had been a due diligence process, but that is all on paper. It is difficult to understand a service business purely based on numbers, so we went around their six distinct regions to understand everything about the background, operations, IT and accounting. Then, where necessary, we began to revamp it. We used a functional matrix, not a geographical one, in order to maximise the synergies and increase our bargaining power. The intention was to keep all the local and regional know-how, but overlay it with function heads for different activities. Now, international or cross-regional customers can talk to one contact for all of China, and a national business development team is able to offer customised solutions with various logistics components. In building the company, what do you always keep in mind? There will be difficulties, but you must be positive and lead by example. I think it is important to enjoy your work, to have passion for what you do, and to stick to sound principles. My time with Jardine Matheson influenced me a lot in terms of management style. Their approach is very systematic and objective and always proactive. I don't believe in using rank or authority to press something through. At the end of the day, the logistics business is about solutions and thinking innovatively, and that is something you can't just instruct people to do. Some people say I'm not tough enough, but I think my approach has worked so far.
