Cargolux Zhengzhou Freighters Already Getting Direct Competition

My Orchids: Brassia. Two competing ones. Photo ET

Cargolux Zhengzhou Freighters Already Getting Direct Competition

Cargoforwarder reported the opening of a competing service from ZhengZhou to Liege, Belgium, just North of Luxembourg, operated by TNT. Liege is a hub for TNT, so Liege makes sense. (Luxembourg over the years has consistently denied other carriers landing rights, mostly DHL and TNT).

What needs a little more explanation is the fact that HNCA, CV's future partner, doesn't seem to be either able or willing to prevent this service from happening. A good faith opening bid for this particular business should have gone to CV.

In time we should get an explanation, and maybe CV management has already figured out why the bride is left at the altar. It seems to be a commercial deal brought together in partnership with other players on the ground in China, not under control of HNCA.

Which brings in doubt some fundamental assumptions people will have regarding the centrally controlled economy, and in particular the exclusiveness of the CV-CGO deal, that seems to be implied in the negotiation with the local Provincial government of Henan, that was designated by the central government of the PRC as an economic zone focused on cargo and logistics.

Here might be the explanation: Mr Deng Xiaoping's economics of one country two systems. Did the more agile free market rush to get a competing solution off the ground with TNT? If that's the case, there is no real exclusive, HNCA has no control over competing free marketers. In that case, the planned JV can only prevail with important incentives and privileges.