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SCMP Reporter

NEDLLOYD Lines of the Netherlands has applied for a licence to set up a China subsidiary.

  S T Poon, Nedlloyd's Hong Kong-based China business manager, said the approval was expected to be granted in the second quarter of next year.

  The company follows Japan's Nippon Yusen Kaisha (NYK Line), Mitsui OSK Lines and Kawasaki Kisen Kaisha (K Line) which applied for licences last year.

  Germany's Hapag-Lloyd is also awaiting approval to set up a mainland subsidiary.

  Mr Poon said the new subsidiary, to be based in Beijing, would also take control of the company's agency business on the mainland.

  Nedlloyd has representative offices in Beijing, Tianjin, Dalian, Shanghai and Nanjing.

  Plans were being finalised to open offices in Tsingtao, Guangzhou and Ningbo this year or early next.

  The staff strength in China would rise from 17 to more than 40 next year, Mr Poon said.

  The company employed 50 people in its China division in Hong Kong, but Mr Poon said there would be no significant job cuts when the Chinese subsidiary opened for business.

  'To be competitive in China you have to have front line offices on the mainland. The Hong Kong office is needed for management expertise, relay and documentation and customer services.'   The company lifted 3,200 TEUs (20-foot equivalent units) from China last year. The number was expected to exceed 40,000 TEUs this year.

  Its China-bound containers numbered 16,000 last year and Mr Poon said efforts were being made to increase the number significantly.

  The 400-TEU feeder ship Nedlloyd Dragon makes regular calls at Huangpo, Shekou, Xiamen and Fuzhou, which are supplemented by common feeders from other Chinese ports.

  The company hopes to carry between 65,000 and 70,000 TEUs out of Hong Kong this year.

  Mr Poon said Nedlloyd had gained a larger share of the Far East-Europe trade following the withdrawal of French shipping giant Compagnie Generale Maritime (CGM) from the route this month.

  Nedlloyd and Malaysian International Shipping Corp (MISC) have taken over the rights and obligations of CGM under the Tonnage Sharing Agreement (TSA) which covers the trade between Europe, the Mediterranean and the Far East.

  The two have chartered CGM's four vessels in the trade to continue to operate under the TSA umbrella.

  Mr Poon said Nedlloyd would increase the number of weekly sailings to Hong Kong on its Far East-Europe service to two in March, when Mitsui OSK Lines would join the TSA consortium.

  The number of weekly calls to Hong Kong will increase to three in December next year when American President Lines and Orient Overseas Container Line of Hong Kong will join forces with the three companies.

  Nedlloyd ships were expected to carry about 800,000 TEUs this year, up from 700,000 TEUs last year.



Nedlloyd sets course for China