Sinotrans Air Transportation Development GM makes management changes

SINOTRANS Air Transportation Development Co Ltd recently announced sudden changes in upper management after the resignation of four directors, Logistics Week reported.

The changes follow the appointment in August of a new general manager, Guo Sheng, who had been a consultant from McKinsey & Company.

A company statement said vice president Liu Xuede and three other directors including Gaowei, Zhangdong and Liu Hongling have resigned. Yu Jianmin, Guo Sheng, Wang Baiqian and Zhang Kui are proposed to replace them, the report said.

Sinotrans Development announced appointment of Mr Guo as GM to replace Zhang Dong, who had been GM for five years.

Experts in the logistics industry expect that the change of general manager was an indication that the company would change its management mentality from that of a state-own enterprise and move closer to a free market model, the report said.

Appointing a new GM with global management consulting experience also indicates that the company would boost expansion by acquiring or merging with other express delivery companies, the report said.

In 2003, McKinsey drew up the second Five-year Plan (the 11th Five-year Plan) for Sinotrans Group and fixed the orientation of transforming it from a traditional transportation company into a competitive logistics service supplier.

Since then, investment of Sinotrans, with the aim of becoming the largest logistics company in China, has expanded from air freight business, terminal and depot operation to contract logistics, chemical and cold chain logistics and logistics, the report said.