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Jiangsu Trailer Leasing and CIMC Intermodal Equipment Team Up at the Right Time

2018.04.10

The efficient teaming up of two holding subsidiaries of CIMC Vehicles (Group), i.e. Jiangsu Trailer Leasing Co., Ltd. (hereinafter referred to as Jiangsu Trailer Leasing) and CIMC Intermodal Equipment Co., Ltd. (hereinafter referred to as CIMC Intermodal Equipment), was made at the right time with a significant implication. Both parties, on top of the strategic cooperation between CIMC Vehicles and Gree, take the opportunity to promote the innovative actions CIMC Vehicles is making in the area of intermodal transportation and add “attractiveness” to the connection between supportive facilities for logistics and transportations at the railway terminal, road terminals and ports. This cooperation also brilliantly reflects that CIMC Vehicles (Group), as an entrepreneurial and innovative company, is seizing the opportunity to realize connectivity and rapid growth.

As early as the beginning of 2017, CIMC Intermodal Equipment quickly adjusted its strategy for development based on the arrangement specified in the strategic cooperation framework agreement signed between CIMC Vehicles and Gree, and finalized a “project-based” path for growth. Later, the Gree project team was established.

On March 20, 2018, CIMC Intermodal Equipment took initiative to contact Jiangsu Trailer Leasing at Intermodal Asia 2018 and, after intensive negotiation and coordination between both parties, the latter decided to be “the first one to try tomato,” actively worked out related solution, and sent related personnel, being determined to make the cooperation between CIMC Vehicles and Gree a total success.

On March 29, 2018, 14 skeleton semi-trailers for maritime transport were dispatched by Jiangsu Trailer Leasing at short notice to Zhuhai and delivered to CIMC Intermodal Equipment. These semi-trailers will be used as the major equipment for the company to perform the “Gree-Zhuhai Port” logistics project and the company has therefore realized a new breakthrough of expanding from the drop and pull transport to port logistics. He Xiansong, the company COO, said, “This cooperation starts from a new level with both opportunities and challenges. However, it strictly follows the market trend.”

?“The flexible operating lease mechanism of Jiangsu Trailer Leasing is helpful for us to rapidly build a capacity pool and effectively help customers enhance operational efficiency and lower operational costs,” said Qiu Chunyou, General Manager of CIMC Intermodal Equipment, “they have an advanced business principle and a clear goal for which we have put in great trust and expectation.”

Informatization is the soul of the modern logistics industry. Currently, Jiangsu Trailer Leasing is making greater efforts in informatization and using the Internet and Big Data technology to build a remote monitoring platform, centrally collect, store, mine, and analyze transport data from various terminals, and provide quick solutions so as to realize the real-time management of logistics operations.

?“As ?associate companies, we must support each other. We have both offered each other outstanding service solutions and price terms. You will not find such preferential terms on the market,” said He Xiansong, COO of Jiangsu Trailer Leasing, “Both parties are now discussing a logistics solution with better cost efficiency in an effort to make this project an excellent one, satisfy the customer, and bring profitability to both companies.” He added that “it is just a beginning with these 14 semi-trailers and CIMC Intermodal Equipment has ordered another 30 in early April. A total of 100 semi-trailers will be ordered for this project in this year as expected.”

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Q: What is the core reason that makes you decide to agree on this cooperation?
A: I think this order is very interesting. While the client is one of our associate companies, it is the first one in the Group that is willing to try our leasing business and that has the same thinking toward such business model with us. Besides, this is also a golden opportunity for the entrepreneurial and innovative companies within the Group to build a leading role in innovation and synergetic development.


Q: Why are there greater benefits in the cooperation with Jiangsu Trailer Leasing?
A: First, there are not many companies of our kind on the market. Second, we truly understand semi-trailers the best and are capable of providing customers with suitable and reliable ones as well as management, repair and maintenance for the trailers. Meanwhile, we have always been valuing the reliable performance of trailers which is also one of our advantages. When we lease something to customers, they will immediately ask if it can be usable and reliable. We can meet their requirement on the quality while minimizing our cost and increasing our profit.


Q: Will you still be so confident when dealing with demanding customers?

A: Of course there are some demanding customers. Actually, some customers are “picky” in their requirement. I always believe that the requirement of customers is the greatest force that drives us to run up along the learning curve. As long as the customers buy our products and services, we can have the chance to make progress. The customers support our growth with their cash flow. We must listen to them, correct errors, and better help them create value, achieving a win-win situation. Regarding the cooperation we entered with CIMC Intermodal Equipment, it only took us less than one month to complete the deal from acquiring the business opportunity to the product delivery despite various real-life limitations, which is quite a short period. On today’s market, great efficiency and flexibility are also our advantages.


Q: Will it be profitable to deal with an associate company?
A: We are just at the start of this cooperation and at least we can say there have been some benefits. For this project, the payback period can be long or short. However, we cannot just rely on some kind of non-operational return. After all, profit is a must for a company.


Q: What is your “small goal” for this year?

A: I hope that our team would join hands to help the company lease out a total of more than 2,000 trailers as expected for our operating lease business. I know we have set up a big goal but we have the confidence in reaching this “small goal.”???

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