BAX Expands China Presence

Supply chain services provider opens offices in Guangzhou, Shanghai to spearhead expansion plans

Supply chain services provider opens offices in Guangzhou, Shanghai to spearhead expansion plans

Shanghai, China — January 10, 2005 — Supply chain services provider BAX Global has formed new subsidiaries in Guangzhou and Shanghai to coordinate the development of its expanding service network throughout China.

Based in Irvine, Calif., BAX Global is a $2 billion supply chain management and transportation solutions company offering multi-modal logistics management for business-to-business shippers through a global network of nearly 500 offices in 133 countries.

The new Guangzhou and Shanghai subsidiaries, BAX Global Freight Forwarding (Guangzhou) Company Limited and BAX Global (China) Co. Ltd., respectively, will be wholly foreign owned enterprises (WFOE) established under the Closer Economic Partnership Arrangement (CEPA) with China.

Through these new subsidiaries, BAX Global said it will provide a variety of logistics services, including international and domestic air freight, ocean freight, exhibition support services, related trucking and transportation consulting services and supply chain management.

BAX Global has been established in China since the early 90s and was one of the first international forwarders to open a representative office in Beijing. The head office for BAX Global China will be at its Shanghai WFOE.

The company's current network of representative offices spans three regions: Northern China, with Beijing, Dalian, Qingdao, Tianjin and Xi'an; Eastern China, with Fuzhou, Nanjing, Ningbo, Shanghai and Suzhou; and Southern China, with Dongguan, Guangzhou, Shenzhen, Xiamen and Zhongshan.

The network provides transportation and supply chain management services for its global and local customers in such industries as high-tech, electronics, medical, healthcare, retail, fashion and aerospace.

"The formation of these companies will enhance significantly BAX's ability to meet customers' service requirements throughout China," said Andrew Jillings, BAX Global's vice president for North East Asia. "The new companies will allow BAX to directly book space, first with ocean carriers and later with air carriers."

In addition, the company can now provide direct invoicing and various ancillary services, including customs, commodity inspection and insurance brokerages, as well as bonded and non-bonded warehousing and other related services.

Steve Dearnley, president of BAX Global for Asia Pacific said: "China is an important market and production base for today's global economy. As a fully licensed logistics provider, BAX Global is positioned for growth, with wholly controlled entities allowing maximum flexibility to suit customers' specific requirements."

For more information on the latest trends in the logistics space, see the article "The Analyst Corner: Fulfillment & Logistics" in the October/November 2004 issue of Supply & Demand Chain Executive.