There are countless logistic companies. So, in order to be successful as a medium size logistics provider in China, you need two things: a clear business plan, and a market niche – knows Glenn Bai, Managing Director Militzer & Münch China.
With exports of about 2.26 trillion USD, China was export world champion in 2017. For Militzer & Münch, this upward tendency of Chinese economy offers new opportunities. Due to the constantly growing e-commerce sector, Militzer & Münch transports increasing volumes of goods from China to Central Asia, Russia and Europe. For these traffics, Militzer & Münch also uses the New Silk Road trade lane.
Since taking office in 2013, Chinese President Xi Jinping has been pushing the development of the New Silk Road through his Belt and Road Initiative (BRI). China invests up to 1,000 billion USD in the construction and expansion of transcontinental trade and infrastructure networks between Europe, Asia and Africa. President Xi Jinping’s term of office is unlimited, which means continuity for the New Silk Road project among others.
“We are a specialist for transports along the New Silk Road.”
Managing Director Militzer & Münch China
Militzer & Münch with a new product on the New Silk Road
Militzer & Münch benefits from the investments in infrastructure projects, too. In many countries along this trade lane, Militzer & Münch has been operating its own country units for years already. “We are a specialist for transports along the New Silk Road”, says Glenn Bai. “Thus, we organize exports of Chinese industrial plants to Central Asia, the Middle East and Africa. We also handle imports from Europe and the USA. To grow, we target niches like project logistics and the aviation industry.”
Militzer & Münch China is constantly extending its product portfolio to meet the customers’ requirements. The latest addition: an LCL consolidation box service via rail from Duisburg to Wuhan. For this freight consolidation or groupage transport, the team bundles and ships smaller consignments as LCL (Less Than Container Load). Militzer & Münch China is the only one in the market to provide this service on this route.
The transport starts from Duisburg every Saturday and is routed via Małaszewicze in Poland and Alashankou in China. Without customs clearance, the transit time is only 18 days. Currently, Militzer & Münch China mainly transports products for the automobile industry to Wuhan. Since the early 1990s, Wuhan has been regarded as a hub for the automotive industry, which accounted for 20 percent of the city’s economic strength in 2015. Yet Militzer & Münch China also wants to expand its new customer business.
Tianjin’s free trade zones offer potential
Strategically selected locations are also part of Militzer & Münch China’s clear cut business plan. The activities of Militzer & Münch in China’s North East, in the port city of Tianjin, are a good example. Here, Militzer & Münch operates the M&M Tianbao joint venture to be able to offer its customers warehousing services via partner Tianbao Logistics.
Tianjin offers numerous advantages to companies. This includes the many different free trade zones, where goods can be imported and exported without customs clearance or any other fees.
“Owing to the free trade zones, many companies from the aviation and automotive industry have settled in Tianjin – they are our potential customers”, says Glenn Bai. “Our customers welcome our strategy to enter into a joint venture in Tianjin and thus be in a position to offer local storage facilities.” From Tianjin, Militzer & Münch for instance delivers spare parts from Europe to Chinese airlines. Moreover, the city is home to China’s seventh biggest sea port. The proximity to the port is ideal for the Chinese team: in 2017, Militzer & Münch China generated 45 percent of its turnover with sea freight.
Managing Director Militzer & Münch China
Never losing sight of the clear plan
With its products, Militzer & Münch China services niches in the market: whether it is the specialization on transports along the New Silk Road or offering the unique LCL consolidation box service via rail from Duisburg to Wuhan. Strategically chosen locations like Tianjin also support the clear plan that aims to offer customers optimal and tailored services. In order to be successful as one among numerous logistics providers, Militzer & Münch China makes use of these niches and of the huge potential of the Chinese market – thus pursuing a clear cut strategy.