Xi’an in central Shaanxi province is chosen for the new HNA entity to be based due to its centralised location that is ideal for facilitating logistics both by air and inland rivers, according to a statement from Shaanxi’s National Development and Reform Commission.
HNA Logistics has been one of the key businesses for the conglomerate, engaging in shipbuilding and marine engineering construction, bulk commodity trading, and cold chain system logistics.
In recent years, however, revenue contributions from HNA Logistics has been slow due to the protracted slump of the international shipping market, prompting HNA Group to merge the logstics affiliate with the technology affiliate HNA EcoTech as part of efforts to create better synergies.
Drawing on the logistics and technology resources of the two companies, HNA Logistics and HNA EcoTech is aiming to focus more on developing 3PL and even 4PL, as well as logistics freight solutions.
HNA Logistics controls Jinhai Heavy Industry, HNA Sinosun Logistics, Tianjin Tianhai Investment, HNA Cold Chain, among others.
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