Elcoteq Network Corporation is a leading global electronics manufacturing services (EMS) provider focusing exclusively on the communications technology industry. Elcoteq manufactures Terminal Products (e.g. mobile phone) and Communications Network Equipment for its OEM customers, and selected Tradeport to provide Vendor Managed Inventory services for its south China manufacturing facilities in Shenzhen and Dongguan.

"It is a landmark deal for Tradeport and for the Hong Kong logistics industry as it proves that we can offer world class logistics solutions for the leading company in the EMS industry," said David Oldridge, CEO of Tradeport Hong Kong.

"While China continues to build its hi-tech manufacturing base there is growing demand for high value added logistics services that mostly utilise airfreight. Tradeport's Logistics Centre has attracted world class customers based on our flexible services, expertise and excellent location," he added.

Tradeport provides inbound and outbound logistics for Elcoteq's south China facilities, with components from overseas suppliers moving through Tradeport for final assembly in Dongguan and Shenzhen and finished products packaged and dispatched from the Logistics Centre.

Elcoteq provides leading-edge value-added EMS solutions comprising product design, new product introduction, manufacturing, supply chain management and after-sales services to its customers who are leading communications products OEM companies. Elcoteq on-the-ground capabilities across all regions of the world enable its global customers to localize and local customers to globalize.

"It is a landmark deal for Tradeport and for the Hong Kong logistics industry as it proves that we can offer world class logistics solutions for the leading company in the EMS industry," said David Oldridge, CEO of Tradeport Hong Kong.

Services provided to Elcoteq by Tradeport include managing the flow of Elcoteq's sensitive electronic components materials in a temperature and humidity controlled environment, barcode all arrived component shipments and manage the First-In-First-Out (FIFO) storage. Return goods are partially handled through Tradeport.

Tradeport's customised logistics centre at HKIA offers Elcoteq vendor management inventory (VMI) that keeps the transport of its raw materials or finished products "onboard and on track," says Oldridge. VMI and other supply chain management services that Tradeport has available also allow Tradeport the ability to export its services, such as the similar Tradeport facility in Singapore. "We are a logistics operator and we can take Tradeport's original model, build facilities and bring our services and expertise to any region in the world," says Oldridge.

Tradeport is able to handle air cargo and containerised cargo from sea and land. Inbound raw materials or finished products arriving in complete airline ULDs or 20ft or 40ft containers are processed at a purpose built truck dock, fed via a marine terminal adjacent to the airport or by road. This is further supported by the investment into state-of-the-art building management systems along with advanced IT infrastructure. This enables full optimisation of assets and resources within Tradeport's Logistics Centre.

Tradeport's Hong Kong logistics centre is comprised of 310,000 sqft of floor space in Phase One. This incorporates space for 15,000 plus pallet positions with 20 loading bays. Phase 2 of the facility will be triggered by demand, between 2004 and 2006, with an additional 100,000 sqft to be able to cater for a total of 20,500 pallet positions. Following completion of Phase two, total space will amount to more than 410,000 sqft.

Tradeport is owned by a consortium comprising of Hongkong Land, China National Aviation Corporation (CNAC), Fraport AG (Frankfurt Airport Services Worldwide), Schiphol Group (SG).