CEO Message 2016

A former colleague of mine who once shared the same dream as me as we started our business together, recently give a call on my mobile phone while I was actually playing a game on my mobile.

Later in our business life, we both choose our different path and he is now a successful CEO of a public listed company.

Our conversation goes like this; -

“Ken, how are you. You been busy? “

“I have an offer for you ….would like to make you an offer to buy C P World Group “

And I was like “ WOW ! COOL ! “If the offer is tempting I will speak to my partners.

The offer was certainly tempting, but something inside me say otherwise. I have at least 10 more years of drive, I still feel young, not sure if I still look young to you. So I am still not ready to surrender the Group effort for retirement funds.

JUST NOT YET!

What surprise me next was when I decline the offer, the conversation took a different twist!

My CEO friend reply was cold and it goes like this.

“Ken, good luck and you can continue to suffer instead of taking the money and enjoying life”. A fair statement, but it was the next line that got my attention.

“Ken, C P World is a big group but it has no value!

Strange, really strange as he was prepared to a buy a company without value.

My friend, partners, ladies and gentlemen.

I have to thank you for taking the time once again to be part of our Global Meeting.

I bet and trust that unlike my CEO friend, you will still find value in C P World Group.

VALUE!

This will form the basis of my speech this year.

Remember when I told you earlier that I was playing a game on my mobile, when my friend call. I was actually hooked on and playing POKEMON GO!

Every year I did a serious speech, this year let’s lighten out a bit and let me share with you a lesson on Pokemon GO and along the way let’s find value together.

How many of you heard of this game or rather play this game. Let me see a show of hands.

If you have not even heard of this game …. WHERE HAVE YOU BEEN?

POKEMON GO has taken the world by storm, that’s because it revolutionised how electronic games should be played in the future. They introduced a concept of Virtual Reality. I am not here to sell you the game. Go and try it and find out for yourself. I understand just outside the hotel along the street there are full of POKEMON!

I would like to talk about Value of CPW using the game concept.

Now, the basic start of the game is that all player have to go to a POKESTOP to pick up POKEBALL otherwise you do not have the means to catch any POKEMON.

Luckily POKESTOP are everywhere. So it makes the player job easier to play the game.

Just imagine that all the C P World Offices are POKESTOP! Spread out across Asia, Oceania and the Gulf.

You collect freight value at such STOP! A C P World office.

Once you have a successful trade lane established with an office, you simply LEVEL UP and decide on another direct trade lane.

Like the game, you can also hatch an egg. Meaning, continue to grow the business with the dedicated C P World office. But there is also a challenge to the game.

Lob the ball too far or too close you will never catch a POKEMON.

So the lesson here is, let’s work on the expectation of our customers and develop the possible trade route instead of trying to do the impossible. Don’t lob the ball too far.

If you are still lost with the game … speak to my Singapore Team ….they will teach you. They are all my POKEMON…my pocket monsters!

Alright, back to business and the real world.

The principle basis of C P World Group and network has not changed since 2008.

What has changed is the market and the modern disruptors that comes along with it. The market changes, we have to follow, the disruptors we have to adapt.

So allow me to freshen up everyone once again on the core principal values of C P World network again.

Enhancing the Network Value

C P World is committed to enhance long – term networking value through constantly pursuing growth opportunities. It has been our core philosophy to create new trade lane, add trade lane selectively increase the variety mix of potential agents and hence grow the network. Not just picking any agents to fill a country without an agent. But ensuring only the best or the relevant potential companies are invited.

We try not to have conflicting interest among invited agents, but with a network that have such a wide coverage, we need to ensure that we provide the value that all participants have an alternative in the event a deal cannot be concluded with another agent or a C P World office.

We sit in a room among the best in the NVOCC industry and I acknowledge that many also have offices in another country.

So, actually we are creating multiple value instead of just a singular value network.

I have noted that the well prepared participating agents or office normally find greater value in C P World Group.

Someone once said to me. Apart from the network value, he has also enjoy the indirect access of CPW development opportunities.

Enhancing the services value

Another unseen value that we take for granted are how this network has provided comfort to each other as far as operational information system and services is concern. Just an email, and you know you a dealing with a trustworthy counterpart although prices may not necessary be the best.

When one gateway cannot meet your required needs, we don’t restrict you from using another gateway. We ran an organisation with an open mind.

But when you tried to go independently with each office or agent and the result did out the way you like, it is not the value that fail you but rather your ambitious plan is not working.

So, this year we have empowered and asked 5 of our senior personnel to be more engaged in the agency collective business with the Group. They are ; Gary ( Singapore ) , Germio ( Hongkong ), Marina ( Australia ), Abhijit ( Dubai ) and Kaushal ( India ).

Enhancing the Core Product – LCL value

Despite the growing number of alternative Freight Associations, Freight Networks, Freight Alliance and many more, our Group continued to demonstrate adaptability and resilience. We continued with our partners and hardly change agent without just cause. Keeping the network steady and remain relevant to all.

We adapt to the market changes and change the way operations engage the business but not changing agent because of price competitiveness.

The core product of LCL has been steady in this Group over 9 years is because we stand together for all these years.

C P World will continue to strive to be significant and continue to be relevant to you.

The network continues to offer the opportunity for the various players in the industry to interact, support each other and all within a single freight platform.

There is no more exciting way to live than to face new challenged every day. This year especially we see many troubles happening to the shipping lines.

All our intellectual intelligent, resources, and experience will be tested like never before.

We have to overcome any adversity, and learn from it. I am confident that we are all rare individual, just like a rare Pokemon who can fulfil to our full potential.

So anything is possible! And we surely can handle!

Driven by the Cause

Despite having been part of the industry and seeing the up and downside of changing market, I have found this experiences meaning and inspiring.

CPW Group is still a closely selected group and not one of general freight association.

After all these years. Our Leadership is still driven by the Cause that we mapped out in 2008.

To bring you the passive infrastructure and our network capabilities.

Lastly, although we have achieve much, we must continue to innovate, transform and evolve to meet the changing economic landscape.

With the continued support of all of you I believe C P World is well-positioned to overcome any obstacles that will come our way as we continue to strive for more LCL cargo and business excellence.

We see our role in CPW Group as highly meaningful and we look forward to charting the next course of journey together.

Thank you, my industry partners for your continued support.

Ken Chiang

Group CEO

Oct 2016