Hi Njay, Thanks for the post. The business plan had zero...

Hi Njay,

Thanks for the post.

The business plan had zero competitors, now due to the changes in China anyone can do what is outlined.

If you were a customer on the list why do you need Ecargo?

That's the question. Every client on that list would have their own IT department capable of delivering what the IPO outlined. Then all that is left is shipping and logistics.

Lets think about how local trucking works in China. I mean all the companies in the IPO import from China to Australia their products, correct?

So if they wish to have those products available for consumers in China they are not exactly going to send them from China to Australia and then back, rather they will stay in China. Where Ecargo should manage the distribution.

Local shipping and trucking in China is handled by what type of Chinese company? State Owned Enterprise. Which means the clients today would save not only $$$$$ by not using Ecargo, they would have a better and more sound operation for entry into the Chinese market. One with true relations not with intermediaries in the way.

This is where I believe that sadly the business worth is extremely overvalued and that the capital will be hard to spend. There is just nowhere I can see for 31M of proactive investment to fit in.

As for the operations starting this year this system and business has been in place with Cargo Far East Services for a long time. The clients in the IPO all use www.cslogistics.com.au the Lau's Australian operations, as well.