Launch

DHL is first to receive CATA

DHL became the first international forwarder to obtain the China Air Transport Association (CATA) domestic airfreight licence, a certification that will allow the courier to launch services in 17 Chinese cities. The approval marks a key milestone in China's domestic airfreight service, which was previously only served by state-owned and local companies. "China has become one of the most significant logistics markets worldwide, with an abundance of open regulations and huge growth potential. We are confident that the licence to operate and gain entry into the domestic airfreight market will provide fresh opportunities and improved management of heavy airfreight from door to door for our customers," commented Peter Landsiedel, CEO Asia Pacific, DHL Global Forwarding. "The launch of DHL Global Forwarding Domestic Airfreight service is a strategic direction for us to expand westwards into second- and third-tier cities in China, allowing DHL to work more closely with our customers, who are developing their production base in the hinterland." A total of 30 CATA licensed branches, covering 70 cities, are scheduled for development by DHL in the next five years.

Opening

Accor opens third airport hotel Novotel

The official hotel of Guangzhou Baiyun International Airport, Novotel Baiyun Airport Guangzhou, held its soft opening in January in preparation for its official opening later this year. The ultra-modern 460-room hotel is adjacent to the newly opened airport and 20 minutes from Guangzhou's Huadu commercial district. According to Accor Asia Pacific Managing Director Michael Issenberg, Novotel Baiyun Airport Guangzhou will make a significant contribution to southern China's leisure and corporate travel sectors which are both enjoying unprecedented growth. "Novotel Baiyun Airport Guangzhou will be a stylish addition to the city's new airport. бн Its opening reflects the growing importance of southern China to the region. The hotel will provide an ideal base for visiting business, leisure or transit travellers, as well as being a major new venue for conferences and events." Novotel Baiyun Airport Guangzhou is Accor's third major airport hotel opening in Asia in the last year, starting with Novotel Citygate near Hong Kong International Airport in April 2006. This was followed by Novotel Suvarnabhumi Airport Hotel in Bangkok in late September 2006.

Deal

Areva plans JV

Areva, a French state-owned nuclear engineering company, has signed a preliminary joint venture agreement with Sunten Electric Co, a unit of Guangdong Macro that manufactures electrical appliances. Sunten is based in the southern city of Shunde and makes equipment used in urban electrical networks, such as transformers, prefabricated substations and switchgear and other electrical power equipment. Although Areva, the world's biggest reactor manufacturer, is better known for its involvement in China's nuclear energy development, the company also makes equipment for China's fast-growing power grid. Guangdong Macro would have the controlling share of the new JV. Regulatory approval for the venture is pending.

DaimlerChrysler co-operates with Beiqi

DaimlerChrysler AG and Beiqi Foton Motor Co Ltd have signed a deal for Beiqi to issue the Germany-based automaker with 297 million new A-shares. Foton said its shareholders have approved the transaction, which is priced at RMB2.75 (?0.27) per share and worth US$105 million (?79.7 million) in all. DaimlerChrysler is expected to become the second-largest shareholder of Beiqi Foton on completion of the transaction with a 24 percent stake. The two companies have also signed a preliminary agreement to tie up on truck production and sales. Foton said it signed the deal which covers certain medium- and heavy-duty truck projects to "sharpen the competitive edge of its current product line-up ... and increase its profitability."

Customers can book online with Jinling

Jinling Hotels & Resorts have signed an agreement with US-based Pegasus Solutions for Pegasus to power its central reservation system. The deal means Jinling will be connected to more than 600,000 travel agencies and over 1,000 web sites around the world through the Global Distribution System, so customers can book rooms online. Jinling has also agreed to use the PegsTour service, which will help its hotels by automating bookings from Pegasus' participating tour operators and wholesalers. "We are pleased to have signed this agreement with one of the most reputable hotel groups in China," said Olivier Dombey, Pegasus' regional VP, Asia Pacific. "Jinling Hotels & Resorts has been a leader in China in successfully pioneering brand development and recognition for its hotels and we are eager to work with the hotel group and provide the tools necessary to expand this recognition even more worldwide." The hotel company currently manages more than 30 luxury hotels and resorts in China and eight Jin's Inns. Last year, it was ranked fifth on a list of China's top 20 national brand hotels.

SCPEL makes third property investment

Standard Chartered Private Equity Limited (SCPEL) has invested US$35 million (?26.6 million) in Sino Ocean Real Estate Development, the property arm of Chinese shipping and property group Cosco. This is the third investment by Standard Chartered in China's real estate sector following the investment in Shimao Property Holdings and Greentown China Holdings in 2006. "SCPEL has committed to expand its business in the Chinese market, and, in the long term, the healthy development of this market is very crucial for us," said Karam Butalia, global head of SCPEL. "We are glad to contribute to the sustainable growth and balanced development of the real estate market." Fan Chen, managing director and head of Greater China for SCPEL referred to Sino Ocean as "one of the best companies in the industry". He added, "As a committed long-term investor to the China market, we will continue to focus on all sectors which are highly correlated with the rising personal wealth [of the Chinese people] and the improvement of [their] living standards."

Gide advises Veolia Water

Gide Loyrette Nouel Beijing has advised Veolia Water on an international tender for the acquisition of a 45 percent stake in the City of Lanzhou municipal water company. Veolia Water is a division of Veolia Environnement, which specializes in water services. Following the deal, Veolia Water will manage four water treatment plants, the city's entire water distribution network, 11 elevation plants and associated customer services for a current population of more than 3.2 million inhabitants. The project is expected to generate an estimated total turnover of ?1.6 billion for Veolia. Gide Loyrette has been active in China for more than 25 years and has offices in Beijing, Shanghai and Hong Kong.

TNT launches China-Europe service

TNT marked its new direct flight service between China and Europe in January, with the arrival of its first Boeing 747-400 extended-range freighter at Shanghai Pudong International Airport. The new aircraft will fly three times a week from Shanghai to Europe. Peter Bakker, CEO of TNT Group, said the new service "will provide TNT's customers with the fastest guaranteed transit times to Europe, while having full visibility and control through TNT's integrated IT services, resulting in lower inventory costs and overall supply-chain costs and increased customer satisfaction." TNT said it has seen a significant increase in customer demand for transportation services between the two regions. "The flight has been eagerly anticipated by TNT's clients," commented Michael Drake, managing director of TNT Greater China. "Operating direct flights between Europe and China will strengthen our service capability, as we can offer our customers greater control with TNT in charge of the full end to end process. It will also allow TNT to take advantage of the growing trade volume." The distribution services company has had a presence in mainland China since 1988; it runs 25 wholly owned branches and three international gateways serving more than 500 cities worldwide.