Zenith Logistics Development Co., Ltd.
Chengdu, China Site Visit
January 29, 2016
Mr. Zhou Xi, General Manager Assistant
Zenith Logistics Development Co., Ltd. is a warehousing provider in China headquartered in Chengdu of Western China. Zenith Logistics currently manages 800,000 square meters of warehousing space and has 1 million square meters of warehouse space under construction. Zenith Logistics’ target in the coming years is achieving 2 million square meters of warehouse space in China.
Other than its head office in Chengdu, Zenith Logistics operates warehouses in Wuhan, Xi’an, Shanghai, Huai’an, Qinan and Jingmen. There are more than 200 employees working in the company.
As a warehousing provider, the business is very simple. Zenith Logistics rents warehouse space to both manufacturers and logistics companies. For example, DHL Chengdu is using Zenith Logistics’ warehouse near the Chengdu airport. Usually, the logistics company has its own IT system and staff to manage the warehouse operations.
As e-commerce is popular in China and the demand is strong in Western China because of its large population, Zenith Logistics is keeping its eyes on e-commerce business. Jiuxian.com and Jumei.com, two famous O2O (Online-to-Offline) platforms in China, are using Zenith Logistics’ warehouse. Zenith Logistics provides value-added services to the e-commerce customers. Most of the purchase orders via the internet are delivered by express companies. But Zenith Logistics is trying to do distribution within the Chengdu city area. Zenith Logistics has experience with trucking companies. It is easy for Zenith Logistics to manage the city area distribution.
According to Mr. Zhou Xi, the warehouse is nearly 100% rented with good performance. In order to expand its market share, Zenith Logistics is looking for opportunities to build new warehouse facilities. Its latest warehouses are in Huai’an of Anhui Province and Jingmen of Hubei Province.
Zenith Logistics is open to investors who have interest in the Chinese warehousing market. Zenith Logistics has a joint-venture project with an investor from the U.S. The JV warehouse project will help Zenith Logistics to expand quickly in the market.
As 1 million square meters of warehouse space is under construction, Zenith Logistics welcomes any 3PL to rent its warehouses.
Sources: A&A Primary Research, http://www.zlogis.com/