Hyundai enters China's logistics market

Hyundai Merchant Marine (HMM) will be entering China's general logistics market by penetrating the Shandong Province, reported MAEIL newspaper.

The company announced that it has signed an Memorandum of Understanding (MOU) with the Shandong Province Communication and Transportation Group for both sea-based and land-based logistics operations.

The Shandong Province Communication and Transportation Group covers a wide range of operations including passenger express bus service, freight transportation, large scale freight operations, general distribution, marine operations for coastal and outer harbor cities, and shipping agency operations.

“We will strengthen the marine transportation and shipping industry in China by banking on our strengths in cargo ships and bulk vessels,’’ said an official from Hyundai Merchant. “We are also considering linking the group's passenger bus service to parcel delivery services.

“This MOU will also allow both parties to secure a container centre at the Qingdao port, and allow closer cooperation for making improvements and managing the port and distribution center. If all goes well, both companies may set up a joint enterprise to explore new opportunities in the sector."

Shandong Province is a transportation hub of Northeast Asia. It includes Qingdao – one of the world's top eight container terminals and a port with container traffic of 12 million TEUs – and Yantai, a rapidly growing harbour town.

Bilateral trade between South Korea and Shandong Province has been growing rapidly, posting US$25.8 billion last year.
(Source:http://www.cargonewsasia.com)