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Nicholas Fang
Wed, Feb 20, 2008
The Straits Times
Global logistics alliance to set up base in S'pore

SMALL players in the logistics industry around the world may soon be offered a way to take on the big boys, thanks to a new global alliance to be based in Singapore.

The new grouping will allow smaller companies to tap the expertise of their larger peers while creating a seamless system of freight operations for their customers to use.

BDP International, a United States-based logistics and transportation management company, is forming a group aimed at allowing small and mid-sized companies to challenge logistics multinationals in their home markets.

The alliance will be called BDP Global Network Services, said its director, Mr Tim Frear, who added yesterday that BDP was aiming to sign up 30 companies by year-end to cover the major global markets.

'We feel that, with that number, we will be able to offer customers a seamless operation all over the world,' he said. 'Our partners will be able to leverage on our technological expertise, marketing collateral, sales support and co-branding.

'At the same time, BDP will also extend its reach into countries where we do not have a presence without the need for investing.'

Strength in numbers

'Our partners will be able to leverage on our technological expertise, marketing collateral, sales support and co-branding.'
- MR FREAR, BDP Global Network Services director

He said that companies with annual revenues of between US$20 million and US$30 million (S$28.3 million and S$42.4 million) would be perfect candidates for the alliance.

'BDP, with annual sales of US$1 billion, is well-positioned to be the anchor member or 'mother ship',' he added. 'We chose Singapore as the base, thanks to its solid infrastructure and booming logistics environment.'

He said 14 companies have been approached to be part of the alliance in countries including Colombia, New Zealand and Peru, with nine having already signed letters of intent to join.

BDP president and chief executive Richard Bolte said the alliance was a response to market demand for intensive customer service in the wake of unprecedented industry consolidation.

'The multinational companies believe bigger is better. We at BDP and our partners have a different view, namely that personal relationships and an intimate understanding of our clients are more important than sheer size,' he said.

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