Retailing, Franchising, and Consumerism Business Intelligence in China

80 Guangdong Service Zones To Open Soon

Nan Yue Logistics, a logistics and expressway service firm in South China's Guangdong Province, is planning to build 80 expressway service zones in the next 15 years.

The service zone business has registered double-digit growth lately, said Nan Yue Chairman Lu Maohao, so the company wants to develop it into a new profit source.

A total of 100 more service zones is expected to be established by 2020 in Guangdong, when, according to the provincial government's development blueprint, the province would add 5,000 kilometres of highways.

Nan Yue currently runs 30 to 40 expressway service zones in Guangdong that integrate a series of facilities such as convenience shops, fuel-filling stations and restaurants.

Nan Yue subcontracted the gas station operation of some of its service zones to Sinopec in January. Sinopec is a strategic partner of Nan Yue, holding a 5 per cent stake.

"We would like to subcontract convenience shop and restaurant businesses of the service zones by bidding or introducing strategic partners," said Lu. Apart from service zones, Nan Yue is also eyeing the shuttle bus business.

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