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Kerry EAS Brings Us Together

Kerry is as well known in the world market as it is in Beijing. In addition to Kerry Centre, Kerry EAS Logistics is becoming more important to people living and working in Beijing.

Kerry EAS got its name on January 13, 2005, when Kerry Logistics Network Limited acquired a 70 percent stake with 380 million yuan (US$46.96 million) from EAS International Transportation Limited existing operations and integrated with KLN to operate under the brand name of Kerry EAS Logistics. Previously, on the last day of 2004, KLN, under Kerry Properties, had purchased a 50 percent share and interest in EAS.

Kerry Logistics became a big brother in warehousing operations in the 1980s in Hong Kong. As the word logistics became more popular with the public, it was founded in February 1997, aiming to provide turnkey third-party logistics services. Soon after its establishment, it began to provide logistics support to the then popular C to C e-commerce in Hong Kong.

In 2000, Kerry Logistics decided to become one of the leading third-party logistics service providers in Asia, both in terms of customer satisfaction and shareholder value. Relying on new information technologies and new concepts in supply chain management, KLN gradually began serving the electronics, health care, parts and components, technology, fashion, retail and chemical industries where third-party logistics services were much needed.

After several years of development, Kerry Logistics  sales increased explosively from about HK$420 million in revenues in 1997 to HK$2.3 billion in 2004 with logistics income accounting for 81 percent of revenues in 2004. With the contribution of Kerry EAS, the total sales volume of Kerry Logistics in 2005 is expected to reach HK$5.1 billion with pure logistics accounting for 93 percent of its income.

Kerry Logistics provides services of on-land transportation, third-party logistics services, sea transportation, air freight, container terminals, and foreign trade. Kerry Logistics, the brand for its international services with Kerry EAS as its brand for business operations in China, has set up branch offices in 13 countries worldwide and is running business in 250 cities in 50 countries. It is managing distribution centres covering 740,000 square metres where it provides comprehensive logistics services, including contract logistics and international freight hauling of various products.

Informatization is also regarded as a key task in Kerry EAS, because members of its management fully understand its importance. As Wang Weicheng, president of Kerry EAS said, clients are no longer satisfied with simple services such as warehousing and providing vehicles for transportation. Logistics has actually become an information platform integrating all the databases of production, transportation, ports, airports, warehouses, trading, purchasing, banking, insurance and customs. For this reason, Kerry Logistics invested millions of US dollars to build up its information platform to better serve its clients with electronic-commerce technologies, Internet-bases B-to-B transaction procedures and supply chain management.

Nationwide, Kerry Logistics has formatted it development to make the North China Region, centred on Beijing; the Yangtze Delta Region, around Shanghai; and the Zhujiang Delta Region, around Shenzhen; and Tianjin, Qingdao and Ningbo bases for the comprehensive development of logistics operations.

In Beijing, Kerry Logistics signed a contract with Beijing Enterprises Investment Limited to cooperate in Beijing's logistics market on November 4, 2000, with an estimated US$50 million investment and each party taking a 50 percent share. On April 4, 2001, Kerry Jingtai Logistics, a joint venture of Kerry Logistics and Beijing Enterprises Investment Limited, was set up to provide logistics services for the North China Region. Kerry Jingtai focuses on serving clients with complete logistics resolutions and world-class comprehensive logistics services relying on its logistics and marketing networks that span the Asia-Pacific Area. It is committed to developing its business, with Beijing as the centre, radiating to the whole country and the Asia-Pacific Area.

Each step Kerry EAS takes foreshadows its bright future.