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APL and OOCL offer new Chindia service

APL and OOCL offer new Chindia service

Singapore: APL and OOCL are introducing a China India Express (CIX) service, to cater to the surging economies of India and China.

APL's CIX service replaces the existing Singapore Subcontinent 2 (SS2) service, which served between APL's hub in Singapore and Nhava Sheva. The new service will expand port coverage up to Bohai Bay in North China and make additional stops in South China and Colombo on its way to India, connecting key ports where demand is growing rapidly.

"APL's success is built on innovation and understanding the needs of our customers'," said Ron Widdows, APL's Chief Executive Officer.  "CIX is our latest value-added service that will strengthen our leadership position in Asian market."

"APL was the first in the industry to develop direct India-focused services through the Singapore Subcontinent Express (SSX), and subsequently the SS2. While these services have been very successful, the need to keep up with our customers' appetite for more direct services has prompted us to launch the CIX. In addition, we believe that the Northern Chinese ports of Xingang, Dalian and Qingdao will continue to see strong growth and hence we are confident that the new CIX service will best meet our customers' needs," Mr Widdows explained.

The CIX will start calling at North China in mid-May 2007 at Xingang port in Tianjin.

The CIX service will deploy five ships with a capacity of between 2000 - 2500 teu, which are in high demand between China and India. APL will provide three ships with another two provided by OOCL. 

The port rotation will be: Xingang - Dalian - Qingdao - Hong Kong - Shekou - Singapore - Colombo - Nhava Sheva - Singapore - Hong Kong - Xingang.

"Markets such as India and China are getting more sophisticated as customers realize the need to have consistently high quality shipping services. These customers are becoming increasingly concerned about the opportunity costs of missed shipments, stock outs and late deliveries," said Mr Widdows.

Trade volume between China and India has been growing at a robust rate, and these markets are expected to see GDP growth of 9.5% - 10% and 8% - 8.5% respectively in 2007.

"The booming Indian economy driven by the evolving Indian consumer, reduction of import duties and signing of various free trade agreements will see strong rise in sourcing from the industrial heartlands of North China.  This has contributed to the perceivably high demand for refrigerated services between India and China," APL said in a statement.  [16/04/07]