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Wednesday, 29 July 2015 13:50

SmartTrans ramps up China business with new logistics contract Featured


Australian listed mobile and online payments platform and logistics software provider SmartTrans has expanded its logistics business into China on the back of a new contract to develop and supply software to automotive components manufacturer, Yanfeng Automotive Trim Systems.

SmartTrans has been chosen by Yanfeng Automotive to supply a module of the company’s best-of-breed logistics software.

Headquartered in Shanghai and with operations in over 20 countries, Yanfeng Automotive reportedly specialises in the design and manufacture of automotive seating and electronics, including instruments, navigation, audio, ‘infotainment’, security, control and safety systems.

The SmartTrans system uses mobile internet connectivity to provide information and evaluation of driver performance, safety, route optimisation, fuel efficiency and which can also reduce greenhouse gas emissions, and was selected for implementation by Yanfeng with an initial 450 vehicles commencing in Shanghai this month.

Under the terms of the agreement, SmartTrans will earn revenue from an upfront payment and also via a monthly per unit licensing fee.

SmartTrans managing director, Bryan Carr said the partnership will provide SmartTrans with exposure to the fast growing connected car sector, which enables internet connection in vehicles for a variety of purposes including the potential for integration with SmartTrans existing payment platform.

Carr cites reports that worldwide revenue from the sale and supply of connected car products for the passenger vehicle segment alone is anticipated to reach approximately US$149 billion by 2020, with China expected to maintain its position as the largest market.

“This is a fantastic milestone for SmartTrans and a huge vote of confidence in the performance of our technology as well as a great endorsement of the credibility of Company itself. We have worked  long and hard to establish our presence in China and this hard work is now paying off in the form of contracts such as this which take time and a commitment to the market to secure,” Carr said.

“We have been deliberately selective and strategic as to how we expand our logistics division into China and for SmartTrans to secure a partnership like this with the major subsidiary of such a large and esteemed SOE is a huge achievement. We are honoured to have been chosen as the preferred partner to supply software and services to Yanfeng Automotive.”

“Critically, this contract provides a valuable entry point for our proven logistics software into a large and rapidly expanding market and delivers a new revenue opportunity in China for our established software.  With the connected car sector growing at a rapid rate in this market, we are excited to be a part of it and see a natural fit for our logistics business with the opportunity to integrate our mobile payment systems.”

Carr says SmartTrans will now work closely with the Yanfeng team to develop and deliver the software “with a view to promote and distribute our software to others in the auto sector in China.”

“Also, we are jointly assessing opportunities to immediately sell an after-market logistics software product for commercial vehicles in China. Distribution channels are being reviewed and we believe this opportunity represents an additional revenue driver for our logistics business.”

Carr says that the recently completed $5.5 million capital raising has given SmartTrans the financial flexibility to fast-track the growth of both its SmartPay division in China, and now its logistics business  in both Australia and China.

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Peter Dinham

Peter Dinham - retired in 2020. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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