Kerry Logistics Shows Strong Growth in Turnover

Hong Kong - 28 March 2012 - Kerry Logistics increased its turnover by 47% year on year to HK$16,034 mn (US$2,061 mn) and boosted net profit attributable to its parent company Kerry Properties’ shareholders by 11% to HK$740 mn (US$95 mn) in 2011, excluding the HK$130 mn (US$17 mn) fair value adjustment on investment properties.

During the year, Kerry Logistics’ Integrated Logistics (IL) services growth in Hong Kong and Southeast Asia drove segment turnover up 43% to HK$6,890 mn (US$886 mn). Net profit generated from operations amounted to HK$510 mn (US$66 mn).

The IL segment has increasingly focused on the potential to serve new demand emerging from China’s shift from an export-led economy to a domestic-consumption-led growth model, as well as from the flow of manufacturing activities into ASEAN countries. The segment’s performance was also helped by the further expansion of Taiwan operations.

The International Freight Forwarding (IFF) segment continued to deliver strong gains in performance. The segment’s turnover was up 51% to HK$9,144 mn (US$1,175 mn) with net profit from operations soared 200% to HK$90 mn (US$12 mn). During the year, the segment leveraged increasing economies of scale and a growing capability in intra Asia and Asia-Europe trade lanes while it gained solid ground in serving the growing import requirements in the markets where it operates.

About Kerry Logistics

Kerry Logistics is Asia’s premier logistics service provider with a strong focus on China. Based in Hong Kong, Kerry Logistics has offices in 23 countries with over 16,000 employees and a transportation fleet of 8,000 vehicles. Its core business encompasses integrated logistics, international freight forwarding and supply chain solutions. By owning and managing 3m sq.m. of logistics facilities, it provides customers with reliability and flexibility to support their future expansion and long-term growth. Kerry Logistics Network Limited is a wholly owned subsidiary of the Hong Kong-listed Kerry Properties Limited.

DHL Boosts Intercontinental Service with New Round-the-World Flight, Linking Hong Kong, Los Angeles and Leipzig

Plantation, Fla., March 22, 2012: DHL, the world’s leading international express services provider, announced significant enhancements to its intercontinental delivery capabilities, effective March 27, 2012. The launch of a new, additional round-the-world flight connecting Hong Kong, Los Angeles and Leipzig will create a unique service proposition on key trade lanes between Asia and Western U.S. and Canada.

The transit time capability between Asia and Western U.S. and Canada will be market-leading, with a greater number of Asian origin locations, including key trade hubs Singapore, Kuala Lumpur, Bangkok and Manila and a significant number of cities throughout China benefiting from next-day connection into Los Angeles and much of Western U.S. and Canada. This represents the first time that customers in many Asian cities will be able to enjoy a one-day express delivery service with any carrier on this important intercontinental lane.

Thanks to a new onward connection from Los Angeles direct to DHL’s European air hub in Leipzig, Germany, customers in California including the key cities of Los Angeles, San Diego, and San Francisco will be able to order a pick-up from a DHL courier up to 3 hours later for their European shipments.

Capacity and service reliability on this new route will be enhanced by the introduction of three Boeing 777F freighters, operated by Southern Air. DHL announced in September 2011 that it had signed a multi-year agreement with Southern Air Holding Inc. to operate B777F freighters on intercontinental routes connecting the Americas, Asia and the Middle East. The first of these round-the-world routes – from Hong Kong to the Express hub in Cincinnati to Bahrain and back to Hong Kong – is already in operation. The additional freighters will bring the total number of B777F freighters in DHL’s global fleet to 12.

“The introduction of this new round-the-world flight by DHL, The International Specialists, will bring unrivalled benefits to our customers in all sectors in Asia, Europe  the U.S. and Canada, and deliver reduced transit times on some of the world’s most important trade lanes,” said Ken Allen, CEO of DHL Express. “The additional capacity, range and reliability of the Boeing 777F freighters, as well as the increased fuel efficiency they bring to our fleet, will complement the significant investments we have already made in our global network over the last year and reinforce DHL’s leading position in international time definite delivery.”

“This service is a game changer. This new round-the-world flight will offer customers in key Asian markets the best transit times to Western U.S. and Canada and on into Europe,” said Stephen Fenwick, Regional CEO for DHL Express Americas. “The new flight is part of DHL’s operations strategy to improve our network infrastructure and add capacity. In the Americas, the recently announced $47 million expansion of DHL’s super-hub in Cincinnati and the expansion of our gateway in Miami will allow us to process the increasing amount of heavy-weight cargo we’re seeing.”

The B777F freighter is expected to burn around 20 to 25 percent less fuel and has a superior max payload range on intercontinental routes, allowing more markets to be served non-stop. The continued upgrade to more efficient aircraft is in keeping with DHL’s commitment to increase its carbon efficiency by 30 percent in 2020.

DHL:

DHL is the global market leader in the logistics industry and “The Logistics company for the world”. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of 53 billion euros in 2011.

OOIL Reports Annual Profit for 2011

March 13, 2012 -- Orient Overseas (International) Limited (OOIL) and its subsidiaries have announced a profit for 2011 of US$181.6 million, compared to a profit of US$1.867 billion in 2010.

“While we started 2011 believing that the extremes of 2009 and 2010 were behind us and that we had a period of steady growth ahead, trading conditions in the container transportation industry over the past year became increasingly difficult,” said OOIL chairman C C Tung in a press release. “While overall global demand levels grew, the slow rate of economic growth in the United States and in Europe saw only muted volume growth for container trade to those markets. Demand growth proved inadequate for the orderly absorption of new-build capacity that delivered during the year.”

The peak cargo moving season showed a moderate increase in volume in July and August. Average revenue per TEU was seven percent lower overall for the year, largley due to a 29 percent erosion in freight rate levels from Asia to Europe.

OOIL owns one of the world’s largest international integrated container transport businesses which trades under the name “OOCL”. With more than 270 offices in 60 countries, the Group is one of Hong Kong’s most international businesses. OOIL is listed on The Stock Exchange of Hong Kong Limited.