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Seatrade Asia Online
Container shipping giant Neptune Orient Lines (NOL) has decided to relocate its support services functions from Shanghai to Chongqing in China.
NOL said cost increases in Shanghai had prompted its move to the western China city.
NOL will establish a new administrative and service centre in Chongqing to support its backroom operations like customs compliance and invoicing across China, Japan, Korea and the Americas by end of next year.
“In recent years, as Shanghai has established itself as one of the world’s premier cities, the cost of doing business for such transactional activities has increased and is expected to rise further. Now is the right time to relocate our large-scale transactional operations to a location that provides a more effective cost base for the long-term,” said Eng Aik Meng, president of APL, the company’s container shipping unit.
NOL cited competitive office leasing costs and business-friendly taxation policies as factors for its move to Chongqing, which also involves the relocation of 200 jobs from Shanghai.
NOL plans for the new facility to be fully operational by the end of 2010.