It has yet to put trucks on the road in China, but Yellow Roadway Corp. has taken a major step toward raising its profile in that country. Last month, the carrier announced that it was investing in a Chinese freight-forwarding business. Yellow Roadway will spend $45 million to buy a 50-percent stake in JHJ International Transportation Co Ltd., the freightforwarding subsidiary of Shanghai Jin Jiang International Industrial Investment Co. Ltd.
Based in Shanghai, JHJ is the second largest airfreight forwarder in China. JHJ also offers ocean freight forwarding and logistics services through a domestic network of 22 locations, including five customs warehouses adjacent to the Shanghai Pudong International Airport. JHJ,which employs more than 1,000 people, reported 2004 revenue of $330 million.
"Our objective is to provide seamless, end-to-end global transportation solutions to our customers," says Bill Zollars, chairman, president and CEO of Yellow Roadway Corp. "The joint venture with Jin Jiang advances this objective by significantly expanding our scale and capabilities in China." The deal, which is subject to the Chinese government's approval, is expected to close this fall.