SIPG Logistics Co, one of the largest logistics companies in China, has joined forces with NEMS, part of Impala, a metals warehousing and logistics company, to create a specialist logistics network to benefit Chinese and non-Chinese customers.

Impala is a wholly-owned subsidiary of Trafigura, one of the world’s leading international commodity traders. SIPGL is a logistics enterprise owned by Shanghai International Port (Group) Co, a listed company on the Shanghai Stock Exchange and the designated delivery warehouse approved by the Shanghai Futures Exchange.

The 50:50 joint venture, called Shanghai NEMS Port Logistics Co will combine SIPGL’s established infrastructure including experience in integrated logistics operations and related facilities, such as ports along the Yangtze River and the coast, warehouses and freight network, with the global customer base and expertise of NEMS to collect and deliver raw materials and finished products across China and through the NEMS global network of distribution hubs. NEMS offers access to trusted integrated metal services and LME-approved bonded and fiscal warehousing.

“NEMS will become a preferred supplier for SIPGL, creating fresh business opportunities within China and also amongst our traditional client base across Europe, Africa, the Middle East, the Americas and other parts of Asia,” says NEMS managing director Charles Bucknall.

The joint venture will also be able to provide financial and logistics support to Chinese companies, enabling them to break into overseas markets. Customers outside China will benefit from priority access to SIPGL’s established infrastructure network and close links to local industry.

“The Yangtze is one of the world's busiest waterways, serving the metallurgical, power, chemical, auto, building materials and machinery industrial belts and high-tech development zones along its banks,” says SIPGL director and general manager Felix Sun. “This is the first joint venture of its kind that we have entered into. One of the additional benefits we see is the better use both of shareholders’ superior resources to form a logistics network of more than 50 warehouses within and outside China that will provide a more comprehensive and complete supply chain service for commodity customers.”

NEMS will complete construction of a new 20,000 square metre floor capacity warehouse in the Yangshan Free Trade Port Area, Shanghai in October 2013, further increasing its secure storage capacity in China.

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