Gefco sets up forwarding subsidiary in central China

Logistics specialist anticipates increasing demand from ‘new generation’ automotive logistics and ‘Belt & Road’ initiative.

Gefco has set up a freight forwarding subsidiary in Chongqing, in central China, dedicated to the import and export of vehicles by rail between Europe, Russia and China – evidence of its rapidly growing business in the country.

The French automotive logistics specialist has been one of the pioneers in establishing rail freight services between China and Europe, first operating a block train of containers – originating in Wuhan and bound for a plant of its major customer, automaker Peugeot, in northern France – in November 2017.

Currently majority-owned by Russian rail group RZD, Gefco already has a country-wide Chinese subsidiary, Gefco China, employing 1,300 staff located in 15 cities, as well as two joint ventures in China, DongFeng Gefco and SMGL (Shenzhen Minsheng Gefco Logistics).

The group’s combined China business is aiming to boost turnover by at least 40% by 2021 in anticipation of increasing demand for ‘new generation’ automotive logistics and new development opportunities resulting from China’s ‘Belt & Road’ initiative.

Beyond its core inbound logistics activities in the Chinese automotive sector, Gefco is building on its know-how and capabilities to boost OEM supply chains in China with finished-vehicle solutions. These include door-to-door services for complete built-up units, pre-carriage, car transportation, storage, compound design, operation management and domestic distribution to dealers.

It is also preparing for the new challenges posed by the emergence of electric vehicles (EVs).

“EVs will need fewer moving parts than ICE (internal combustion engine) powertrains, which means less transportation of spare parts in the future,” explained Paul-Henry Fréret, Gefco’s executive vice president, East Asia. “Moreover, transportation assets and schemes will need to be adjusted to comply with regulation on battery transport.

“We are convinced our 70 years of experience in automotive logistics can make a difference in boosting our customers’ supply chain for the electric revolution.”

Source: Lloyd’s