Friday, 12 September 2008
China update
Linda Yang and I have travelled to Shenzhen, Shanghai, Beijing, Wuhan and Qingdao over the last 2 weeks. We presented to 100+ JHJ staff from these locations, plus numerous other regional JHJ offices with our ideas on how we are going to build our Chinese Business Development team in Europe. I was overwhelmed by the intelligent and visionary discussions we had, I am excited about the proposed future plans and I am looking forward to working closer together. Prior to this overseas trip to China, I thought I had decent knowledge about our JHJ China joint venture, but now my eyes are truly opened.
We operate in many locations that other major multi national logistics companies do not. We actually rent office space to some of them and complete local services for them such as customs clearance and commodity quality checks. Our staff are intelligent, graduate educated and treat every shipment and client as though it is their own business. The management are passionate and treat their staff as though they are their own family, all in all, we have awe inspiring offices.
I met many great people including a wonderful professional in Qingdao who reads all my blogs so I must say hello. Hi Lucy Fan, it was great to meet you and thank you for developing your European expertise and looking after the needs of YRCL Europe and our clients the importers and exporters, and thank you very much for all your hospitality.
Lastly before I travelled to China I planned to reward any of our staff that stood out from my meetings in China. To that note I am proud to say that Martin Wall was given huge praise from many offices. It seems Martin has been able to not only provide great service and communication to our JHJ offices but he has understood the special needs to deal with this market. Martin and I have worked together for over 12years at YRCL and he does provide extraordinary service to our clients. Martin, I thank you and you will receive £500 as a special reward in your salary.
In a few hours I will be heading home with much to do, but also with much excitement about the future development of our China team in Europe.
We operate in many locations that other major multi national logistics companies do not. We actually rent office space to some of them and complete local services for them such as customs clearance and commodity quality checks. Our staff are intelligent, graduate educated and treat every shipment and client as though it is their own business. The management are passionate and treat their staff as though they are their own family, all in all, we have awe inspiring offices.
I met many great people including a wonderful professional in Qingdao who reads all my blogs so I must say hello. Hi Lucy Fan, it was great to meet you and thank you for developing your European expertise and looking after the needs of YRCL Europe and our clients the importers and exporters, and thank you very much for all your hospitality.
Lastly before I travelled to China I planned to reward any of our staff that stood out from my meetings in China. To that note I am proud to say that Martin Wall was given huge praise from many offices. It seems Martin has been able to not only provide great service and communication to our JHJ offices but he has understood the special needs to deal with this market. Martin and I have worked together for over 12years at YRCL and he does provide extraordinary service to our clients. Martin, I thank you and you will receive £500 as a special reward in your salary.
In a few hours I will be heading home with much to do, but also with much excitement about the future development of our China team in Europe.
Friday, 5 September 2008
China acquisition completed
We have now closed on the acquisition of Jiayu, the third largest ground transportation provider in China.
We believe ground transportation is one of the critical elements in the supply chain, and in China it’s a major pain point for many of the clients of YRC Worldwide.
When you consider three years ago we were just getting started in China, to now we have made great progress and it is interesting to view some of the key points.
We have over 250 offices throughout China with approximately 4000 employees. Our revenues on a run rate basis when you include Jiayu will be between $350 to $400 million on an annualized basis. Lastly, from a profitability basis, although many companies told us early on that we would lose money for 3 to 5 years, this has not been the case. In fact, our Joint Venture with JHJ continues to show significant improvement and in July alone they more than doubled their profits compared to July of last year. We’ve always been profitable, every quarter and we have a massive amount of talent on the ground in China.
All of these developments mean we can offer our clients more value in this key market which is great postition to be in.
My blog updates may be a bit limited over the next 2 weeks as I am in China viewing some of these exciting developments.
We believe ground transportation is one of the critical elements in the supply chain, and in China it’s a major pain point for many of the clients of YRC Worldwide.
When you consider three years ago we were just getting started in China, to now we have made great progress and it is interesting to view some of the key points.
We have over 250 offices throughout China with approximately 4000 employees. Our revenues on a run rate basis when you include Jiayu will be between $350 to $400 million on an annualized basis. Lastly, from a profitability basis, although many companies told us early on that we would lose money for 3 to 5 years, this has not been the case. In fact, our Joint Venture with JHJ continues to show significant improvement and in July alone they more than doubled their profits compared to July of last year. We’ve always been profitable, every quarter and we have a massive amount of talent on the ground in China.
All of these developments mean we can offer our clients more value in this key market which is great postition to be in.
My blog updates may be a bit limited over the next 2 weeks as I am in China viewing some of these exciting developments.
Labels: China, JHJ, Logistics, transportation
Wednesday, 13 August 2008
China Developments
On 20th December 2007 YRC Logistics entered into a definitive agreement to acquire one of the largest ground transportation providers in China. This has given YRC Logistics extra services in China with 30,000 clients, 1,800 employees, 3,000 trucks, over 190 facilities in 80 cities with full transportation and distribution capabilities. In addition to the joint venture with one of the largest freight forwarders in China, JHJ, in 2005, this now gives YRC Logistics tremendous scale in China. As you may have already read in my blog, we are actively recruiting China experts, to be based in our European offices to cope with the extra demands. This really is an exciting period for YRC Logistics and staff that are interested in the fascinating market with China. To find more about our China capabilities please click http://www2.yrclogistics.com/yrcwlogistics.aspx?pgID=1046 or call 0800 6129374
Labels: China, JHJ, transportation
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