Logistics Sector of ACE：

　　ACE develops the logistics business in Qingdao, Lianyungang, Xining,and Nantong, Fangcheng, Alashankou and their backland and the key products include Sulphur, Fertilizer, Chemicals, Nonferrous Metals, Minerals and some of Dangerous Goods and so on. The total logistics quantity is about 3million metric tons per year, including sulphur at 1.8million metric tons(excluding the quantity by the joint-venture companies).

　　Relying on the logistics facilities in some important ports and cities, ACE has established a logistics network in taking railway and highway as the key methods and waterway as the additional method. It has established railway container yards in Fangcheng and Kunming, which is engaged in convective transportation for Sulphur from Nanning to Kunming and Phosphates from Kunming to Nanning; established railway container yards in Lianyungang and Xining, which is engaged in container multi-model transportation for Aluminium Oxide and Ingot; also established tanks for molten chemicals in Lianyungang, which is engaged in storing, processing and transporting Dangerous Goods.

　　ACE mainly provides logistics services for import & export goods. Relying on the different branches in different areas, ACE provides logistics services for the whole course from ship’s hatches to warehouse of endusers or the warehouse to hatches. ACE created its special transportation systems in railway, highway and Yangtze River.

　　ACE has closely cooperated with a few railway departments. Besides the traditional railway transportation (including gondola car and box car), all branches of ACE manage and use total more than 3000 containers in 20’GP, including 1200 of our own containers and the left are rent from railway department, in order to develop the mainline transportation and provide door-door service for customers. The business is developing rapidly. Meanwhile, ACE has our own professional cars for transporting molten sulphur and agreed cars for dry bulk cargoes on the highway. Many ship companies are the long-term partners of ACE in Yangtze River.

　　Following the improvement of logistics facilities and network of ACE and growth of main logistics customers of ACE, till the year of 2013, it is estimated that the total logistics quantity will be increased to about 5 million metric tons, including sulphur at 2.3 million metric tons. It is also estimated that there will be over 50% of tonnages transported in main line through railway containers.