Yellow Roadway Finalizes China Freight-Forwarding Venture

September 15, 2005 11:45 AM, EDT

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ellow Roadway Corp. said Thursday it had finalized formation of the China-based freight forwarding venture it first announced in June.

Under the terms of the joint venture, Yellow and China’s Jin Jiang Investment each own 50% of JHJ International Transportation Co. Ltd., the freight-forwarding subsidiary of JJI.

Yellow said it invested $45 million to acquire its stake in JHJ.

JHJ is based in Shanghai and is the second largest air freight forwarder in China, Yellow said. JHJ has 22 locations, employs over 1,000 people and reported 2004 revenue of $330 million.

Yellow also said that its Meridian IQ subsidiary and JJI singed an agreement for a new logistics joint venture. That venture is subject to Chinese government approval and is expected to close early next year.

Yellow Roadway is No. 3 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.

(Click here for previous coverage.)