Round The World Logistics & Supply Chain Management Ltd.

Shenzhen, China Site Visit
February 3, 2011
By
Eric Xiang

Key Personnel:
Mr. Richard Zheng, Managing Director
Mr. Ryan Wang, Sales & Marketing General Manager
Mr. Jerry Yang, Business Development Manager Ocean Freight

Richard Zheng founded Shenzhen, China headquartered Round The World Logistics & Supply Chain Management Ltd. (RTW) in 1996. At its inception RTW provided air freight forwarding and express shipment transportation management services. Today, RTW holds an NVOCC (non vessel operating common carrier) license and Class A license for air freight forwarding. It also has been granted a customs brokerage license in Shenzhen. RTW’s focus is on the South China market and has branch offices in Guangzhou, Dongguan and Changsha.

In order to strengthen its air freight forwarding business, RTW established a subsidiary in Hong Kong which is the main gateway in South China and most South China air freight is shipped through Hong Kong. From Hong Kong, RTW manages air freight shipments destined to Europe, South East Asia, Africa, and the Middle East using air carriers such as: Emirates, Eva Airways, and Cathay Pacific. For some air freight shipments, RTW is also utilizing the Shenzhen and Guangzhou Airports. Its annual air freight volume is 4,000 metric tons.

For ocean freight, RTW can legally book space from ocean shipping lines directly. The main ocean carriers it uses are China Shipping and Maersk Lines. Its annual ocean freight volume is 60,000 TEUs (twenty-foot trailer/container equivalent units).

RTW has started to develop contract logistics capabilities in order to provide integrated supply chain management solutions to customers and recently secured a key account managing a warehouse in Changsha.

Due to his previous experience in trading, Richard Zheng has a deep understanding of logistics demands from the shipper’s viewpoint and has strong sales skills. These skills and RTW’s operational quality were the driving forces in it being awarded business from Lifan Group in 2010. RTW manages motorcycle and car shipments from China to Africa, South America, the Middle East and South East Asia for Lifan. Its monthly cargo volume is around 350 FEUs (forty-foot trailer/container equivalent units). Another major customer for RTW is Lite-On Group. RTW handles a large amount of air freight shipments and DDP (delivered duty paid) ocean shipments from China to North America and Europe. RTW’s KPI (key performance indicator) levels ranked amongst the top three on Lite-On’s core LSP (logistics service provider) list. The Konka Group and ZTE Corporation are also RTW customers. RTW targets major Chinese manufacturers in its business development activities.

According to Richard Zheng, RTW uses agents overseas which are managed very well. In China, RTW plans on establishing branch offices in East China and North China to strengthen its network.

We see continued growth for RTW in the coming years. At the same time, RTW needs strong capital support for further development. RTW has an IPO (initial public offering) planned for 2012. Before the IPO, RTW is open to venture capital and investors.