Beijing – Danish cold chain logistics company N&K Spedition is to spend more than CNY 100bn ($14.3bn) building facilities and a distribution fleet across key parts of China.
The company aims to provide a premium one-stop service that the country currently lacks, according to Transworld Transportation, a Taiwanese freight forwarder. Its chairman, Tai Chih Chung, is to be president of N&K Spedition Asia, and will be in charge of business development.
China’s cold chain market is predicted to reach CNY 470bn in 2020. However, the country has only 19% cold chain logistics coverage compared with 95% in Europe and the US. The lack of coverage leads to more than CNY 100bn/year of fresh fruit and vegetables spoiling before they reach the consumer, TWT claimed.
The new business plans to bring European standards to the China market. It also hopes to go public over the next three to five years to raise capital, TWT said.
TWT was founded in 1984, and is headquartered in Taipei. It has branches in Vietnam and Cambodia, and operates in 50 countries.
Currency translation: XE.com