Changjiu and UTi Worldwide partner to tackle Chinese automotive logistics
February 18, 2015
A partnership between California-based supply-chain company UTi Worldwide and Changjiu Logistics aims to serve the logistics requirements of global automotive OEMs and suppliers in the booming automotive market in China. Changjiu claims to be the largest independent automotive logistics company in China.
"We are very excited about this partnership," said Ed Feitzinger, UTi chief executive officer. "Our clients are very interested in what UTi and Changjiu Logistics can do together and we are committed to make this a successful partnership."
He said the two companies possessed complementary strengths and many cultural similarities, especially a focus on client service that would enable their joint success.
"The partnership with UTi will give Changjiu the strength to develop international business with multiple-modal transport service as well as to enrich client bases and company comprehensive capability,” said Bo Shijiu, board chairman of Changjiu Logistics.
According to Bo, developments are already underway on the China-to-Europe rail service. Changjiu has already had success operating such a service for global OEMs and UTi is now running Europe-to-China shipments using the Changjiu Logistics network.
"Our strategy is to develop an inland transportation system for both component milk-run and finished-goods deliveries utilising UTi's solutions and best practices and Changjiu Logistics' strong trucking and warehousing capability in key automotive manufacturing and industrial centres in China,” said Ditlev Blicher, UTi president for freight forwarding. “These areas offer a critical mass of auto clients for OEM and tiers one and two and are key clusters for UTi and Changjiu Logistics to focus on together."
Blicher said three areas of joint development were planned: railway traffic between Europe and China; production logistics for automotive OEMs and tier ones; and aftermarket parts and accessories distribution.
Feitzinger said UTi and Changjiu initially would seek clients in the automotive sector but felt that aerospace and other manufacturing sectors also would benefit from the services offered by the partnership.