Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc.

March 02, 2010 08:30 ET

Grand Power's Joint Venture Signs Agreement With Major Airline Carriers to Handle Their Dangerous Cargo Shipments in Northern China

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - March 2, 2010) - Grand Power Logistics Group Inc. (TSX VENTURE:GPW), a leading China-based international logistics provider, today announced that its joint venture with Beijing Jinfeng Air Service Co. (BJAS), has signed agreements with two major airline carriers to handle their dangerous cargo shipments in Northern China. As previously announced on November 24, 2009, the joint venture, Beijing Jinfeng International Logistics Ltd. (BJIL), will provide ground transportation, loading, custom clearance and warehousing services. BJAS is a subsidiary of the China National Aviation Holdings Company (CNAH), a Hong Kong Exchange-listed company that owns Air China, the largest air carrier in China.

"Our decision to partner with BJAS and enter the dangerous cargo market expands our network in Northern China and provides us first mover advantage in the dangerous cargo segment with strong partners," said Ricky Chiu, President and CEO of Grand Power Logistics. "Currently, Chinese airlines are handling the logistics of dangerous cargo internally. The signing of two major airlines is a positive sign that our value proposition to increase the efficiency of shipping dangerous cargo and improve customer service through out-sourcing is attractive to the Chinese airlines. As one of the the first logistics company to focus on dangerous cargo, we expect BJIL will capture a significant share of a market that is growing rapidly with China's ongoing economic development. The BJIL joint venture is consistent with our strategy to increase profit margins in our air freight business by leveraging our operational infrastructure that supported over $140 million in 2008. "

As recently announced, BJIL was formed by Grand Power and BJAS to provide dangerous cargo handling services in Beijing and Tianjin, the two principal cities of Northern China, which combined have a population of approximately 30 million. BJIL has secured the necessary government licenses to transport dangerous cargo and hazardous materials, and expects to expand into other major Northern China cities, including Dalian and Qingdao. 

Dangerous cargo is a category used to define specific goods being shipped. It includes a wide variety of items such as liquids, perfumes, cosmetics, and lithium batteries, which are found in most electronic goods.

About BJIL

Beijing Jinfeng International Logistics Ltd is a joint venture company providing dangerous cargo handling services. Joint venture partners include Grand Power Logistics and Beijing Jinfeng Air Service Co. (BJAS), a subsidiary of the China National Aviation Holdings Company (CNAH), a Hong Kong Exchange-listed company.

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 or

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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