Six Chinese carriers joined forces yesterday to create the
nation's first air logistics alliance.
The new group - SAL Logistics Enterprises Alliance - comprises
majority shareholder Shanghai Airlines (SAL) Co Ltd, China United
Airlines Co Ltd, SAL Cargo International Co Ltd, SAL International
Cargo Services Co Ltd, Shanghai Crane Transportation Co Ltd and
Dahang International Transportation Co Ltd.
An SAL source said the group is part of the company's strategy
to tackle increasing competition in the industry.
The world's four express delivery giants - DHL, UPS, TNT and
FedEx - are all vying for a slice of Shanghai's market.
DHL launched a North Asia hub project at Pudong International
Airport in November 2007, after UPS established its Asia transfer
center at the airport.
By the end of last year, Pudong airport had an annual handling
capacity of 2.5 million tons of cargo and mail, which is expected
to rise to 7 million tons in 2015, according to sources with the
airport authority.
"The alliance opens a new chapter in the history of China's air
logistics industry," said SAL Chairman Zhou Chi.
The alliance is trying to position itself alongside the city's
developing logistics sector, which is a crucial part of its push to
be a service industry hub, said Zhou.
The alliance owns about 70 passenger and freight airplanes that
fly about 30 international and regional routes and 170 domestic
ones.
Its network covers more than 60 medium-sized and large cities at
home and abroad. In 2010, it will own 100 airplanes.
"We will fully develop the advantages of specialization and
cooperation between all the member companies," said Liu Hele,
executive president of the alliance's management committee.
Liu said the alliance will establish a unified system to
discover the potential advantages and integrate the effects of the
current logistics companies.
(China Daily January 22, 2008)