Swiss freight and logistics provider Panalpina has opened a 10,000m2 logistics centre in Tianjin that will serve as a hub for services in northern China. The company said the new centre would advance its partnership with parts supplier Bosch Automotive Diesel Systems as well as extending its value-added logistics offering.
The move is part of a wider strategy being rolled out over the next three years that will see Panalpina establish more logistics centres in strategic locations across the country according to Mike Wilson, global head of logistics at the company.
“We are establishing a truly integrated supply chain network in China that combines international air and ocean freight with comprehensive value-added logistics services [VAS] and supply chain services,” he explained. “This is in line with our global strategy to extend our VAS capabilities throughout the world.”
Panalpina is dedicating half of the total area of the new centre to Bosch for the storage and distribution of automotive parts to the region.
Bosch Automotive Diesel Systems, a joint venture between Bosch and the Weifu Group, is located in Wuxi, Jiangsu Province and was founded in July 2004 to support China’s rapidly growing automotive industry.
“Bosch and Panalpina can look back at a long partnership that started more than 40 years ago. Over the decades, Bosch grew together with Panalpina and we achieved excellent results through continuous improvement programs on both sides,” said Dr Hans-Henning Toepper, vice president of Bosch Automotive Diesel Systems.
Panalpina is involved in all major Bosch markets and has a relationship with all global Bosch manufacturing, distribution and sales facilities.
Long term, Panalpina is planning to develop the Tianjin logistics centre into a hub first for the whole Bohai Bay district to the east and then for northern China. “The hub will serve multiple customers and provide VAS, together with cross-docking for air and ocean freight shipments,” said Stefan Gustafsson, district manager, Yangtze and Bohai Bay, Panalpina Greater China.
According to the company, Tianjin offers geographical advantages and a comprehensive logistics infrastructure, including ocean port, international airport, rail, highway and road networks, as well as logistics parks.
The company has also announced that it is putting a new regional CEO in place for the Asia Pacific region as part of its Corporate Strategy 2014 agenda. Marco Gadola, chief financial officer, will become regional CEO, Asia Pacific, effective in the first half of this year (see this week’s executive update for more details).
“Our ambitious growth targets that we have defined for 2014 demand that we adapt the way in which we manage the markets. We need to shift power of decision from corporate headquarters in Basel closer to where our customers do business,” said Panalpina’s CEO Monika Ribar. "If we want to exploit trade lanes out of Asia, we need to win more local customers there. This in turn requires more local decision-taking," explained Ribar.