BDP International is banding together small and medium-size logistics and transport companies in a new global alliance to challenge the dominance of large multinational groups in the business.

BDP Global Network Services has been running in Singapore since January and is a unit of Singapore-based BDP Global Services. Logistics firms from around the world will be invited to join the grouping through two levels of membership.

In return for an annual fee, they will have access to BDP's technology, sales and marketing support in priority trade routes, competitive transportation products, established operations, expertise in trade and security compliance, finance and legal issues, client relationships, global integration and shared administrative services, depending on the level of membership they buy into.

Director Tim Frear told The Business Times he expects to see around 30 companies joining by the end of the year; the network hopes to have about 60 members worldwide ultimately. Mr. Frear declined to disclose how much membership would cost.

He said 14 companies had been approached; of those, nine have signed letters of intent, the first step in the process of becoming a member. The aim is to have a strategic partner wherever BDP does not have a presence, and these include areas like Latin America, Eastern Europe and Africa, he added.

"We chose Singapore as the base for this exciting initiative because it's a world-class logistics hub, well situated to benefit from Asia's manufacturing and consumption boom," said BDP International president and CEO Richard Bolte. The company declined to reveal its investment to date.

With many of the group's potential members within a 10-hour flight of Singapore, having the new operations domiciled here is a big plus. "Most of our customers have been very responsive to the fact that we moved our headquarters here...," said Mr Frear.

By: Vincent Wee