Germany’s auto transport firm BLG Logistics plans to cooperate with Chinese car maker Geely to set up a logistics hub in Ningbo in Zhejiang province as it seeks to further tap the huge potential in the Chinese vehicle market. Geely’s auto parts suppliers can send their products to the logistics hub and BLG will transport these parts to Europe after they are completely knocked down. BLG’s clients include Mercedes Benz, BMW and Porsche. “We are still talking with Geely about the cooperation mode, and we are willing to invest in the logistics hub,” said Detthold Aden, Chairman of BLG. Of the 3 million cars delivered by the German firm last year worldwide, only 8,000 units were from China. Chinese car makers exported 47,100 vehicles last month, an annual rise of 18.45% and a surge of 95.99% from a year earlier, according to the China Association of Automobile Manufacturers. Aden said the Eastern European auto market will surge 170% and has advised Chinese car makers to develop the market there.

BLG is actively contacting automakers including Great Wall, Chang’an, BYD and Huatai to provide logistics services in European markets. The company has already helped Chery transport thousands of cars from China to Russia,offloading at Bremerhaven harbor, where BLG’s headquarters is located. The 133-year-old company also helped BMW’s Chinese joint venture partner, Brilliance, to be the first Chinese company to sell cars in Western European countries. Chinese auto brands Chery, Great Wall and Geely, now have a small share of the Russian and Ukrainian markets. As they expand market share, BLG is making a huge investment to expand its logistics network into Eastern Europe. BLG is also assisting Daimler AG transport vehicle parts from its suppliers in Spain to the German automaker’s plant in Fuzhou.