Malaysia's ISH Logistics looks to share Chongqing's HP market

MALAYSIA'S Integrated Shun Hing Logistics Co Ltd (ISH Logistics), will set up joint venture with a local freight forwarder in Chongqing for a share the business brought by HP's laptop manufacturing plant, Logistics Week reported.

ISH Logistics is going to invest CNY60 million (US$8.8 million) on building a 24,000-square-metre warehouse at the city's Cuntan Bonded Port Area.

Chongqing Foreign Trade and Economic Relations Commission said there are quite a few small local logistics operators aiming to secure a share of the market by cooperating or setting up joint ventures with larger logistics companies.

On the other hand, by cooperating with local companies, foreign logistics operators can also get a foothold in Chongqing's automobile trade market, the report said.

Xianfeng, Shuangjia Freight Forwarding general manager and ISH Logistics' Chonqing partner, said that every 100 laptops need one cubic metre of warehousing space provided by third party logistics operators according to international common practice.

As HP's project will produce about 80 million laptops, 800,000 cubic metres of storage space will be needed. Plus the laptop logistics business is new to the local companies, partnering with specialised logistics operators for IT sectors is the fastest way for them to break into this market.

ISH Logistics is a Malaysia-listed company operating a warehousing service network covering Singapore, Thailand, Shenzhen, Shanghai and Japan. ISH was authorised logistics provider for Lenovo and IBM. It is also in partnership with HP and Foxconn.
(Source:www.schednet.com)