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          Business / Industries

          Gefco's new train route ties Chinese ports to Central, Eastern Europe

          By Zhong Nan in Shanghai (China Daily) Updated: 2014-05-15 07:00

          Since China became a revenue powerhouse for global automakers, an increasing number of overseas car companies have set up joint ventures in China. They have synchronized the launch of new models in China with those in the US and Europe, as well as shipping them to China's neighboring countries to further expand their export channels.

          China's auto production and sales set a world record for a fifth consecutive year in 2013, data from the Beijing-based China Association of Automobile Manufacturers show.

          Gefco's new train route ties Chinese ports to Central, Eastern Europe

          Eager to enhance its earning ability, Gefco has established two joint ventures that serve Dongfeng Peugeot-Citroen Automobile Co Ltd and Changan PSA Automobiles Co Ltd.

          It opened a new branch in Chengdu in 2013, where Volvo Car Group built a manufacturing plant and where DPCA plans to open a factory.

          Hou Hanping, professor of logistics management at Beijing Jiaotong University, said foreign carmakers commonly spend a lot of money and resources to optimize their supply chain.

          Headquartered in Courbevoie, France, Gefco's global revenue hit 4 billion euros ($5.5 billion) in 2013, and revenue from its China operation totaled 100 million euros the same year.

          Gefco will set up new branches in Ningbo and Dalian in 2014 to enhance its ocean transport capabilities. It also sees possibilities in establishing branches in Kunming and Urumqi.

          "We are building our own capabilities in China, extending our own networks and working on our own export solutions both at sea and on land port. Additional connectivity between China and India, China and Thailand, Vietnam and Indonesia also is on our radar over the next three years," Poitrineau said.  

           
           

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