“Asia contributed 12 per cent to this figure and with us having launched our 4PL operations, we will create new business opportunities. We should see revenues jumping by between 18 and 20 per cent from this region alone by the year 2010,’’ he said.
For this year, he said the level should be very much the same as that of 2008 as Geodis Wilson, which is the freight handling arm of the group, further extends its cargo forwarding and logisticsnetwork.
Amsterdam-based Geodis, one of the world’s leading cargo management enterprises, currently ranks among Europe’s top five transport and logisticsgroups.
Focus Asia
The group, which already has a strong presence in Asia, having been in the region for almost 20 years, sees China and India as offering the biggest growth potential over the next few years.
“We see the biggest growth opportunities in these two countries,’’ Demeulenaere said. “Our core business — the air and sea freight sector — willlink up with the logistics network to complement the entire operation.Mergers or acquisitions are also in thepipeline although it would be prematureto reveal further details at this stage.’’
“However, we can’t say exactly how much we intend to spend on M&Asthough, initially, it will be in the UnitedStates over the next two years, followedby Asia, mainly China and India. It willall depend on the quality and usefulnessof the target which has to be profitableand be able to create good value for theshareholders,’’ he said.
Geodis Executive Vice-President Peter Nevhagen stressed that the group’s experience in Asia is a distinct advantage. “We are present in almost all countries in Asia, having recently established ourselves in Vietnam, a fast emerging market. We have deep knowledge of Asia where we employ a lot of local people and link up with local organisations. We know the market well and this, undoubtedly, is a big advantage to us. Besides, we are adding more logistics facilities in China which is part of our future. So it is high on our priority list for expansion.’’
Geodis is part of the SNCF Group — France’s state-owned national railway company — and is fully controlled and financed by the SNCF.
The company, which currently operates in major Chinese cities employing more than 400 people, has already identified two new locations — Suzhou and Chongqing — for expansion in the first quarter of 2010, in addition to two others that have yet to be revealed.
“Our intention is to follow up on the constant movement of our customers and industries because they are looking for more business. We want our China operations to be integrated with those of other countries in the region, and we have to continue to be a key player,’’ stressed Geodis’ newly-appointed regional vice president, Asia Pacific, Mathieu Biron.
“China is also becoming an important imports market. We believe imports will be a major area to be tapped, probably, in 10 years,’’ Biron said.
Integrated product offering
Geodis’ Asian network will be driven by its new business entity called Geodis Global Solution (GGS) which is split into four work areas — freight forwarding, contract logistics, groupage and pure tracking activities. “GGS is designing a kind of integrated offer based on our four core businesses. This entity is also managing our global accounts in terms of sales and operations. So we are deploying this in Asia as well as Europe to supplement the development of each division,’’ Demeulenaere said.
According to Nevhagen, the group traditionally takes a two-step approach in setting up its China operations, the first being establishing a sales office, followed by a back office. “This is the way we work while applying the right strategy. Our local knowledge and expertise will help put things together,’’ he said.
As for the group’s performance for the rest of the year, Demeulenaere struck a cautious note. “In terms of revenue, it’ll probably be 15 per cent down compared with 2008 as a result of the financial crisis. But we have invested a lot in sales operations to maintain our market share in addition to controlling costs. We want to continue with the commercial growth of the group. We should break even in terms of results.’’
Asked about Geodis’ likely competitors, Demeulenaere said: “Frankly, we see them as potential partners because they can give us plenty of help through partnership, particularly in areas where our expertise is not there. This way, we’ll get a better market share.’’
