Zhejiang Jiulong Int’l Logistics
Ningbo, China Site Visit
February 22, 2012
Mr. Shen Linfeng, Vice General Manager
Zhejiang Jiulong International Logistics Co., Ltd. (Jiulong Logistics) was founded in 1994 as an ocean freight forwarder. Today, it holds a non-vessel operating common carrier (NVOCC) license for ocean freight and a Class A license for air freight. Headquartered in Ningbo with branch offices in Taizhou and Wenzhou, it has 850 employees and generated $80 million in gross revenue in 2010.
Other than its freight forwarding business, Jiulong Logistics started a container transportation business under the name of Baifu International Logistics in 2006. It has 200 owned tractors and 350 subcontracted tractors.
In order to provide qualified service to its customers, Jiulong Logistics obtained a customs brokerage license in 2006. Since some of its customers are small factories without licenses to do export customs declaration, Jiulong Logistics registered a new company under the name of Jiulong Baifu International Trading in 2009. This has helped Jiulong Logistics in securing more business.
In early 2011, Jiulong Logistics merged with a company that managed the container warehousing at the Port of Ningbo which is now known as Yiliu Container Warehousing. The warehouse is about 3,000 square meters.
Jiulong Logistics has a strong sales team with a focus on the Zhejiang Province. Direct customers are 80% of the business and other small logistics companies are 20%. Jiulong Logistics acts as the booking agent, container transporter and even customs broker.
Jiulong Logistics has invested a lot in its information systems. It has spent two years developing its e-business so customers can use its service via the internet. This has made it very easy to communicate with customers and sell its services worldwide.
According to Mr. Linfeng, Jiulong Logistics has a clear plan for the future. It wants to be the top logistics provider in Zhejiang by 2013 and the top logistics provider in China by 2020. It has plans on an initial public offering (IPO) in 2013. Once Jiulong Logistics goes public, I’m sure it will invest more in developing network expansion. This should help Jiulong Logistics in becoming a key player in the market.
Sources: A&A Primary Research, http://www.jll.com.cn/