How could international logistics players provide customised services? Alex Koo Pok-sing, Chief Executive Officer of Chevalier AOC Freight Express Holdings Limited, believes that understanding clients’ needs is key. Technology application is not the only surefire solution while offering customised service and exceeding clients’ expectations may be a strategy to stand out among the competition. With the Guangdong-Hong Kong-Macao Bay Area (Greater Bay Area) Development in motion, the company hopes it will bring together manufacturers from the Guangdong Province, and enable them to utilise the niche of Hong Kong’s international logistics to embark on the international market.

As Koo remarks, the company is headquartered in the US. It was founded in 1978 when Hong Kong’s manufacturing industry was taking off, which propelled the development of the logistics industry. He says, “About 95% of the company’s business comes from international logistics, and mainly from air freight and sea freight. We’re a multi-model transportation company.” Eyeing the opportunities in the cold chain business, the company joined the Chevalier International Holdings Limited in 2014 as a subsidiary, and it was renamed the Chevalier AOC Freight Express Holdings Limited.

In Koo’s words, international logistics is a traditional logistics business. However, the company has a team of four professionals dedicated to developing innovative services. While one may associate innovation with technology, the company’s endeavours go beyond this simple equation. “We start with industry segmentation and examine the particular needs for freight logistics of each industry.” He refers to smart phone components as an example. “This type of products is seasonal, and it is possible to estimate the shipment date. However, they must be transported by air freight, in which case stability is of high importance.”

He also mentions that the intermodal containers for machinery parts by ocean freight which are exposed to the weather throughout the year, which may cause water leaks. To ensure the cargos are sage, he adds, “Before the shipment, our colleagues will enter the intermodal containers and run tests to check for any light entry. If there is light entry, there is a chance of water leaks. The entire intermodal container is also wrapped up in plastic wrap. This ensures there will be no water leaks if it rains during the transport, or after the flight has landed and the intermodal containers are unloaded.”

He refers to aviation clients as another example. “There are more than 30,000 automotive parts in a plane, like the washroom, the phone and the TV. They may be out of order at any moment and it is unforeseeable.” Therefore, the company has to be on stand-by 24 hours a day. “Besides having their passports with them at all times, the staff members in charge must be familiar with all automotive parts. There is zero room for mistakes, as the automotive parts of a plane are a matter of passenger safety.”

Koo stresses that where services are tangible, technology application can enhance their efficiency. It is more important, however, to understand clients’ needs and provide appropriate solutions. “Through the use of the Internet of Things (IoT), there is monitoring of the temperatures and humidity levels of different corners of the warehouse, and the data is transmitted on an hourly basis. The mobile phone can be connected to the system for monitoring, and it will vibrate, ring or send an alarm message in case of any incident. Besides, the sensor on the intermodal container can help ensure there is no light entry into an intermodal container. Otherwise, it may indicate the presence of thieves.” He remarks that technology application is tailored to every client’s needs for customised solutions, and that is key to the company’s continuous development.

Speaking of business opportunities in the industry, he states that the company has been focusing on its business in the aviation industry. He foresees positive prospects for the pharmaceutical and health care industries this year. “On one occasion, the Hospital Authority requested that we transport human skin and bones to a factory in Malaysia for cleaning and transport back to Hong Kong within a short period of time. That was an extremely time-sensitive task, and there was no time to lose.” He adds that food cold chain also has strong potential for growth but is equally challenging. “The food cold chain has to be kept under a specified temperature while maintaining the food quality and distributing them safely are the crux.”

Last year, the company took part in the Asian Logistics and Maritime Conference (ALMC) organised by the Hong Kong Trade Development Council (HKTDC), where they met other industry peers from Southeast Asia and the Mainland China. The company is in talks with a client in the electronic component business, who is interested in using its international freight services for exporting goods from the Mainland China to overseas through Hong Kong.

Koo also mentions the focal point of last year’s ALMC was the business opportunities from the “Belt and Road”, and he hopes this year’s conference will devote greater focus to examining opportunities for Hong Kong’s logistics industry in the Bay Area. “The manufacturing industry is still active in many cities in the Greater Bay Area such as Guangzhou and Shenzhen, and there is demand for freight logistics for exports. However, the network has been somewhat scattered, as there are individual manufacturers in Shenzhen, Dongguan and Guangzhou. We hope they can come together and utilise Hong Kong’s high value-added freight logistics to tap into overseas markets.”

Speaking of the pharmaceutical industry as an example, he explains there are strict regulations on shipment and that constitutes the niche of Hong Kong’s logistics industry. He hopes the industry will engage in more discussions on high value-added logistics and opportunities in the Greater Bay Area.

Alex Koo Pok-sing, Chief Executive Officer of Chevalier AOC Freight Express Holdings Limited believes that freight logistics is a traditional industry, where understanding clients’ needs and providing high value-added solutions are key to developing innovative services.

Information as of 2017