[photopress:lgistics_simotran.jpg,full,alignright]Sinotrans, China’s largest logistics company, reported a 30% increase in net profit to US$114.57 million in 2007, due to strong growth in freight forwarding, storage and terminal services.
Turnover was up 20.7% to $5.54 billion.
Earnings from freight forwarding business increased by 23%, port storage by 24% and terminal services by 16%.
Freight forwarding accounted for 41% of its earning, terminal services 21% and port storage business 21%. Express services, accounting for 25% of its earnings, saw a 22% drop.
The US economic slowdown hurt marine transport and express services at Sinotrans. The company has already adjusted some of its maritime routes and services and hopes to improve their bottom line. In the next three years, Sinotrans aims to invest $1.42 billion to build up its logistics and transport services empire.
The company wants to acquire warehouses, depots and terminals along the Yangtze River from its parent company. It said it would acquire assets in Shanghai, Zhejiang, Jiangsu, Tianjin and overseas in the next three years after taking over $156.75 million worth of assets — ranging from warehouses to stockyards and terminals — from Sinotrans Group in December last year.
The company will expand its two weak (this is perhaps the wrong word, ‘less strong’ might do it) divisions, marine transport and air freight, through mergers and acquisitions.
Source: CargoNews Asia
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