In the face of a growing trend by giant state-owned enterprises to expand abroad, China Chengtong Group has opted for a different path that keeps its focus at home and on fellow Chinese companies.
For a State Council-backed logistics giant, the group has kept its strategy straightforward.
President Hong Shuikun said: 'We are a Chinese logistics company, we're in this market. We want to aim even sharper at the needs of Chinese firms. Our vision must also be just a little ahead of needs.'
With the mainland's logistics demands on the fast track - the sector has grown at an annual average rate of more than 20 per cent in the past five years - coupled with booming foreign trade, Chengtong's business model makes good sense. To date, the group's volumes have been expanding yearly at 30 per cent in the past five years.
But major success could still be a distance away as the overall industry development is still in its infancy and logistics to many firms is simply moving goods from one point to the other. The concept of comprehensive value-added logistics services has yet to gain wide understanding and acceptance.
Mr Hong said many mainland logistics players lacked an efficient corporate and operational framework that yielded high utilisation and the government had yet to put in place a regulatory framework.