Nowadays, the rapid growth of external enterprises in the Pearl River Delta becomes a driven force to the increase of logistics business in China. Guangzhou city has already planned to construct a big logistics and tourism attraction area in Huangpu zone, the southern part of China. While the investment of infrastructural facilities of harbors in Guangzhou city is increasing, most of the port facilities has been improving continuously.

In order to accommodate with the requirement of international shipping industry as well as the economic development, the board of KCT decided to pursue the second large scale of investment. It is determined that the major facilities and environment of the terminal should be reformed and innovated.

1. Innovate the terminal facilities
The Company planned to rent an additional area of 400 acres land which is next to the terminal for the warehouse construction. In recent years, the growth rate of the shipping industry in China has been double. To cope with this tremendous increase, the Company had decided to innovate the major facilities of the terminal, such as to buy a 40tons rail-mounted transfer crane and a light rail-mounted transfer crane, remove the buildings and facilities which are non-productive and extend the container area. The board has decided to dispose the old fashion equipment and replace by most advanced and modern equipment such as BDI system so as to satisfy the Customs' requirement and optimize the utility of the bonded warehouse.

2. Improve business environment
Apart from facilities and equipment innovation, the board believes that the business environment of the terminal should be improved. Communications with the local government and relevant bodies have always been well maintained. Permanent government staff are stationed in the terminal to discharge enforcement functions and most of the customs clearance procedures are simplified. The Customs officers as well as the quarantine staff can now examine the goods and conduct the quarantine on site respectively. All the above has streamlined the whole operational process and increased the overall efficiency.

3. New management policy
The entry of China into WTO helps to remove trading barrier in China. China has now been opened to the international market. The board of the Company has already envisioned such situation in the last couple years and implemented a new management policy. In 2007 the Company had obtained ISO Certificate. Having accumulated past experiences, the board has designed a new management structure which enable to distinguish right and responsibility of every individual managerial person. The purpose of setting up a new scheme called 'Employee Compete for Positions' is to enhance the quality of staff and increase their work efficiency.

4. Increase risk management
To minimize risks and maximize revenue, the Company has set up a new customer credit information database compiling various information of its customers. Prior to conclude business, staff can make decision base upon the credit result analyzed by the database. The system can also help to better avoid overall bad debt of the Company. The risk management department will examine individual deal regularly so as to avoid any misconduct and damages to the company.