Logistics & Transportation

Vietnam - Singaporean companies eyeing logistics sector

Source: The Saigon Times Daily, 24 May 2010

Singaporean companies are laying wider eyes on Vietnam’s logistics sector and exerting resources to further tap opportunities of this expanding industry. The Vietnam-Singapore joint venture company Indo-Trans Keppel Logistics Vietnam (ITL Keppel) had inaugurated distribution centers in Hiep Phuoc in HCMC and Tien Son in Bac Ninh Province. Other Singaporean logistics companies operating in Vietnam include APL Logistics, CWT Globelink, G-Link Express Logistics, Mapletree Logistics Trust and YCH Group.

The Vietnam Shipping and Logistics Forum estimated logistics services accounted for 15% or more of Vietnam’s gross domestic product. More than 800 logistics companies in the country can meet a mere one fourth of the demand. According to the Vietnam National Maritime Bureau, local logistics companies were able to transport only 18% of total imported and exported goods by sea and the rest was handled by foreign firms.

China - Plan to create an air cargo 'champion'

Source: Financial Times, 26 May 2010

The Chinese government plans to create a "national champion" in the aviation cargo sector. The aim would be to combine the operations of some of the country's largest state-owned carriers to compete with international air cargo companies. Global air freight operators control as much as 80% of China's air cargo market, with domestic carriers taking the rest.

After a wave of consolidation among the country's state-controlled passenger airlines , China's civil aviation authority and state-owned asset regulator are working on a plan to merge cargo operations as well. Analysts say any new consolidated entity would probably be based in Shanghai, the commercial capital. By the end of 2008, China had nine cargo operators with just 70 dedicated cargo aircraft.

Australia - Airlines hit by price war

Source: Australian Financial Review, 29 May 2010

Australian consumers are gaining the benefits flowing from a bloody price war between the nation’s airlines, with prices the lowest in many years. The price war between Virgin Blue, Qantas-owned Jetstar and newcomer Tiger Airways has seen airfares drop to as much as A$1 (US$0.85) during sales and to A$23 (US$19.5) in the past few months for easily accessible fares.

It is bad news for the airlines with Virgin Blue the latest victim of the market battle. It announced that its profit would be less than half forecast at the start of May. Flight Centre says flights to the US are now selling for as low as A$900 (US$762.4), half the historical average. On the trans-Pacific route, Air New Zealand and Virgin revealed plans to form a competitive alliance.

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