American company, BDP International, is optimistic about the logistics market. It set up BDP Project Logistics in Singapore in September last year, becoming the first project logistics company to establish its global headquarters here.

BDP Project Logistics' CEO, Peter Huels, said that the company expects to achieve USD20 million in total revenue this year and double this in 18 months. The company also plans to grow its local staff strength from the current 5 to 15 by year end.

BDP International was founded in 1966 and begun engaging in project logistics operations 15 years ago. However, this sector had never been the main business of the company, comprising just 5% of group earnings. With the growing size of the market, the group decided to expand operations last year, setting up BDP Project Logistics, whose global headquarters is in Singapore.

The company's clients are mainly companies from the chemicals, energy and mining sectors. BDP International has more than 4,000 customers, providing a large customer base for BDP Project Logistics. The projects which it handles are mainly located in emerging markets such as China, Southeast Asia, the Middle East, Latin America, Eastern Europe, Africa and Russia.

Challenging projects handled by the company include transporting equipment for Quinn Chemicals' new industrial park in Germany. This multi-million dollar project required the building of a bridge between railroad tracks so as not to affect rail traffic between Erfut and Halle when moving the equipment.

Huels said that the company handles more difficult projects and thus achieves higher profit margins. Margins depend on the level of difficulty of projects as well as the urgency.

The company chose Singapore as its global headquarters due to the excellent geographical location. With close proximity to many projects in Asia, having its headquarters here facilitates operations. Other factors include Singapore's established financial and legal systems and infrastructure.

BDP Project Logistics, which started operations on 1 January this year, has subsidiaries in Dubai, Shanghai, Germany, Antwerp and the US. It is presently setting up a branch in Czech Republic. It has 75 staff around the world.

By: Lim Shi Hui