Australian transport and logistics company, Wiseway, aims to establish a new cargo hub in Chicago which marks the latest stage in its strategy of diversification, integration and expansion.
The move will see the organisation increase its global network to encompass 11 cities across five countries.
The creation of this new branch follows the successful opening of Wiseway’s Los Angeles hub in 2H 2021, its first in North America. It also capitalises on momentum created through the awarding of an Indirect Air Carrier (IAC) certificate to the Company by the US Department of Homeland Security, Transportation Security Administration. This accreditation entitles the company to deal with airlines directly and on preferential terms.
Establishment of the new branch is expected to be achieved under a budget of $300,000 AUD, and is expected to be funded with business-as-usual operating cash flows.
Wiseway said steady revenues generated across the US West Coast can be replicated, and economies of scale harnessed to boost growth across the region.
“The creation of this new branch will supercharge our expansion across the US, deliver supply chain efficiencies and provide further revenue synergies for our global network,” said Wiseway Executive Chair, Florence Tong.
“This hub is expected to deliver sound revenues within its first year of operations and is easily expandable as business volumes increase.”
Following the Board’s decision to back the strategy, Wiseway will seek to sign contracts to obtain use of customs bonded and quarantine compliant secure warehousing facilities close to Chicago’s main airport, obtain all necessary licensing and regulatory permits and begin a process of recruitment for several full-time employees.
“This is the latest step in Wiseway’s journey from a simple air-exporter to an agile, dynamic and dependable logistics solutions provider which delivers synergies and cost-savings through our global network of interconnected business divisions,” said Tong.
“The creation of a cargo hub in Chicago will harness Wiseway’s already established relationships with US airlines and is expected to provide the foundations for further expansion across North America and the Asia Pacific – from where we expect the majority of growth in the global freight industry will come.”