Beyond the automotive industry, GEFCO intends to develop its textile, electronics, secondary crops (such as rice or coffee) and furniture activities, which constitute significant flow possibilities departing from ASEAN, within a “global sourcing” approach.
GEFCO looking to diversify its customer portfolio in South-East Asia
Beyond the automotive industry, GEFCO intends to develop its textile, electronics, secondary crops (such as rice or coffee) and furniture activities, which constitute significant flow possibilities departing from ASEAN, within a “global sourcing” approach. Regarding importations, flows from Europe for pharmaceutical components or products also constitute an opportunity, especially since the acquisition of IJS Global, specialized in logistics for the pharmaceutical industry, in October 2015. The two-wheeler market is a promising market in South-East Asia, especially in Vietnam and Thailand.
If one looks at the domestic flows, South-East Asian countries need more efficient logistics. The intra-regional trade of the zone represents 24% of world trade and should grow by 30% by 2020. Local logistics requires ensuring the integrity of products, reducing procurement cycles and enhancing interchange traceability. As such, the FMCG (Fast Moving Consumer Goods) sector is an interesting focus to develop GEFCO’s activities in South-East Asia.
South-East Asia, a strong growth potential for freight forwarding activities
The ASEAN +3 gathers the world’s top 20 ports. The GEFCO group has integrated them within its international network, with access for its clients to the best multimodal hubs. The region –more maritime than terrestrial – offers a wide ports network. In case a problem occurs on a supply chain, GEFCO has the ability to transfer its logistics activities to another port or hub of the region, without affecting customers. Aside from its maritime assets, the region is located near China and India, which constitute the world’s top markets with 2.6 billion consumers.
The GEFCO group is expanding its geographic footprint in South-East Asia
The presence of GEFCO in South Korea is in line with the will to create a Korea-Russia-Europe “door-to-door” offering, especially by relying on a first maritime segment from the Busan port towards Vladivostok or Vostochny, then on the Trans-Siberian, and finally via Russia’s rail network, towards Eastern countries, Germany and the rest of Europe. Of course, this solution is not exclusive of maritime and air offers. In addition, IJS Global’s acquisition by GEFCO allows to develop strongly transpacific corridors towards the USA.
Due to its steady and sustained growth reaching more than 6% a year, Vietnam offers promising outlook on the automotive industry, strongly growing: + 60% in 2015, with over 200,000 new cars sold.
GEFCO has a unique expertise to support the development of this market by providing abilities, control, standardized quality and process, and traceability. The two-wheeler market, even when stagnating, remains one of the largest in South-East Asia with almost 3 million units produced. Once again, GEFCO can provide new abilities as part of fleets sometimes maladjusted or ageing, and ensure better quality levels in a context in which the proportion of damage remains high. These damages, sometimes settled out-of-court between carriers and suppliers, are actually quite significant when followed by some manufacturers. GEFCO’s overall expertise on this market, and its success especially in India, constitute assets and arguments to stand out of this promising market.
Finally, the location of Vietnam, sharing its boarders with China, Laos and Thailand, makes it a major player in the development of cross-border road transport, and even rail transport in the future.