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Otran Logistics: The highlight of the South

(VLR) (Vietnam Logistics Review) Recently, Vietnam’s logistics growth has significantly reached about 24% per year. There are currently about 1,300 enterprises providing logistics services. With important role in strengthening economic growth, all these companies have been creating positive changes in improving service quality, particularly a case of Otran Logistics.

(Vietnam Logistics Review) Recently, Vietnam’s logistics growth has significantly reached about 24% per year. There are currently about 1,300 enterprises providing logistics services. With important role in strengthening economic growth, all these companies have been creating positive changes in improving service quality, particularly a case of Otran Logistics.

Strategic key position

Otran Logistics (OTG) operates diverse logistics services and provides complex logistics solutions for general cargoes (or break-bulk cargoes) in Vietnam, including port operations, warehousing services, customs clearance and financial services for inventory. With strategic position along with warehouse network in three areas (the North- Central- South of Vietnam) and partnership network in over 20 countries, OTG additionally takes advantages of each region to develop subsidiaries.

Although OTG is still a young corporation operating logistics business, after almost 3 years of formal establishment and development, it has quickly learnt and applied the advanced management systems from developed countries to implement their activities effectively.

2008: OTG was established under the name Vinacommodities Corporation.

2010: OTG opened office in Ho Chi Minh City to access the feed industry in Southern Vietnam.

2012: OTG started to build warehouse and ports and operation system providing logistics services in Phu My, Ba Ria – Vung Tau.

2013: With growth opportunities and partnerships with external customers, OTG was formally re-organized as a separate entity to provide logistics services to the bulk cargo sector.

2014: OTG’s pool of customers begins to include many leading domestic and international names in the agricultural commodities space. In the fourth quarter, OTG is re-organized into a joint stock company.

2015: OTG actively seeks opportunties creating partnership with investors to expand business nationally. To date, infrastructure of warehouse in Vietnam has been enlarged up to 85,000m2 with containing capacity up to 350,000 tons of cargoes. Warehouse system is distributed at location advantages like: IZ Phu My (Ba Ria – Vung Tau province), IZ Cai Lan (Quang Ninh province), Phu Thai (Hai Duong province) and Dong Nai province.

2015 has recorded a big jump marking for the great growth of OTG that was the completion stage of OTGs re-structuring. OTG is operated as the model of a jointstock corporation that holds stocks controlling subsidiaries. It has two subsidiaries, including the Otran Dong Nai joint stock company and the Otran Logistics joint stock company in the North, and two partners that are the Otran energy joint stock company and the Thi Vai General port joint stock company. Up to 31th Dec 2015, the capital of OTG had increased to 500 billion VND.

Advantages from professional operation

Currently, Otran Logistics specifically provides integrated logistics solutions for break bulk cargoes in Vietnam, including: Ports operations using modern facilities operated by labors that have suitable qualifications to supply demands of clients and market trend. Therefore, OTG can help customers to save time and costs, as well reduce the cargo loss during the loading and unloading process in ports.

OTG’s port operations has strategic location with the most modern and largest scale in the South and advantages of being close to 2 big ports which are international port SP-PSA and General port Thi Vai, hence OTG is proud to be the company providing port operations that satisfy all demands of customers. In Phu My, OTG has two bonded warehouses and 5 warehouses with total area of 37,500m2 with containing capacity up to 150,000 tons of cargoes.

Customs services has professional staff who understand well local rules and work situation, this allows Otran Logistics to provide services for express customs clearance, helping clients to save time and costs.

Professional transport services towards multimodal transport and door- to- door services bring opportunities for OTG to provide effective solutions and efficient costs satisfying logistics demands of the customers.

Always expanding and improving service quality

Not stop at these achievements, OTG still continue thriving to use all potentials of logistics field with maximum operation of specific systems. In Mar 2016, OTG invested to build a new 6,300m2 warehouse to supply customers’ demands, increasing the total warehouse area of OTG in Phu My up to 42,600m2 with containing capacity of 200,000tons. This expansion is the first phase of the investment plan to expand warehouse system of OTG, belonging to the business expansion strategy from 2016- 2020. In particular, OTG will focus on developing customer network in two key regions which are the North and the South, along with warehouse system at strategic locations to achieve the objectives to increase sales and profits of OTG.

Based on the business data in 2015, OTG proudly recorded an increased sale up to 374% compared to the last year, and net profit was triple times higher compared to 2014. OTG becomes public company since Feb 2016 in order to show transparent financial situation for stake holders and related institutions in production and trade activities, thus it could be a great opportunity for OTG continue expanding its business scale and reach higher level.

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