Logistics company witnesses Chongqing's opening-up over past 3 decades

english.liangjiang.gov.cn| Updated: 2024-07-09

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Guoyuan Port in Liangjiang New Area is one of the two China-Europe Railway Express departure stations. (Photo by Lan Tian)

Over the past three decades, He Daoguo has expanded his group of six people into a successful logistics company of over 500 employees. His entrepreneurship made him a witness to the municipality's journey of opening-up.

In the early 1990s, He worked for the Chongqing office of a Hong Kong company that offered international logistics services. Due to insufficient demand, the office was facing a divestiture and was due to shut down. In 1994, He started his own company, Meilian, one of the first private logistics companies in Chongqing.

Back then, the main options for international logistics in Chongqing were flights to Hong Kong and Yangtze River shipping. He recalled that there were only three to four flights a week, which were mainly for passengers and had a maximum cargo capacity of just two metric tons. As for the waterway, it took 15 days before the freight was loaded for international shipment in East China.

During that time, Meilian mainly exported chemical raw materials, textiles, and small household appliances to Africa and Southwest Asia. High-end products that can't be manufactured in China such as electrical and mechanical equipment were most frequently imported.

As the end of the 1990s approached, Chongqing saw its motor exports skyrocket, and a leading motor maker could export 500 million yuan ($68.75 million) worth of motors a year. The roaring demand for international logistics services allowed Meilian to grow. From 1999 to 2004, the company set up branches in multiple cities, including Beijing. Its business expanded to Europe, Central Asia, and North America. Apart from logistics services, the company also engaged in foreign aid and international engineering projects.

In 2001, when Chongqing was authorized to set up an export processing zone, Meilian was one of the first companies operating in the new zone and established a bonded warehouse in 2006. He said that Meilian can only grow when Chongqing is developing open channels and an exported-oriented economy.

As a seasoned logistics professional, He contributed to the establishment of the Lianglu-Cuntan Bonded Port Area and China-Europe Railway Express. His operating data served as proof of project necessity, and his network was leveraged to invite clients for field trips in Chongqing and to persuade local companies to use the new route.

In response to Chongqing's establishment of an opening frontier in West China, Meilian was steadfastly expanding its business and built an office building in downtown Chongqing.

In 2023, Chongqing became one of the top export hubs of vehicles in China and Meilian was among the most frequent logistics options for local car makers. SERES, the auto partner of Huawei, made its first rail-sea intermodal delivery of 50 cars to Europe using Meilian's service. This year, Meilian's trade has exceeded 5.5 billion yuan.

"Chongqing-made vehicles have reached the global market, and I am very proud as a logistics professional," He said. Meilian currently exports Chongqing-made vehicles to countries and regions involved in the Belt and Road Initiative, and imports premier beef, fruits, and high-end consumer goods. The changes happening in foreign trade reflect the improved living standards and impact of the manufacturing industry in Chongqing, He added.

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Meilian's office building in downtown Chongqing. (Photo by Wang Jiaxi)

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