Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc.

February 10, 2010 07:00 ET

Grand Power Signs Agency Agreement With International Ocean Carrier

-Supports decision to sell logistics services directly to exporters-

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - Feb. 10, 2010) - Grand Power Logistics Group Inc. (TSX VENTURE:GPW), a China-based provider of logistics services, today announced that it has signed an agency agreement with a leading, international ocean carrier. Grand Power will act as a broker for the carrier, selling directly to China-based exporters of manufactured goods. 

In 2009, less than 10 percent of Grand Power's revenues were generated from ocean freight with carrier space sourced through wholesalers. Grand Power is strengthening its relationships with a number of international ocean carriers with the goal of signing additional agency agreements. Ocean freight services will be offered to Grand Power's existing customer base as well as new customers. Historically, over 90 percent of Grand Power's revenues were derived from the air freight related services.

"The signing of an agency agreement with a major ocean carrier is consistent with our long-term strategy of becoming a leading full service logistics provider in Greater China," said Ricky Chiu, President and CEO of Grand Power Logistics Inc. "Given that 95 percent of all worldwide cargo is ocean freight and we have over 600 air freight customers, who almost all use ocean freight services as well, it is important that we secure ocean carrier supply to support this significant opportunity for growth. Equally important, the agreement reflects our commitment to increase our efforts at selling logistics services directly to exporters and importers, providing us with an opportunity to improve our margins. Since we have established an operational platform to support a much larger revenue base, we expect the growth of our ocean freight business to be have a positive impact on earnings."

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. operates principally through its wholly owned Hong Kong based subsidiary, Grand Power Express International Limited (GP Express) and provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services. GP Express has established operations in various regions, particularly in the Greater Pearl River Delta (GPRD), China's largest economic region. GP Express' Subsidiaries or Branch Offices in this region are located in Macau, Shenzhen, Guangzhou and Jiangmen. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Taipei, Bangkok and Los Angeles. For more information visit

Forward-looking Information

Statements included in this press release that are not historical facts may be considered "forward looking statements". All estimates and statements that describe the Company's objectives, goals or future plans are forward looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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