COMFORTDELGRO Corporation is increasing its presence in China by investing $16.2 million in a Beijing-based taxi operator, Jia Run Taxi Co, and upping its existing stake in Chongqing ComfortDelGro Driving Training Co (CCDT) with an additional $1.36 million injection.

The world's second largest transport company announced yesterday that it is purchasing 100 per cent of the issued share capital of Jia Run Taxi through its 55 per cent-owned subsidiary, Beijing Jin Jian Taxi Service.

The acquisition boosts its taxi fleet in the city by nearly 7 per cent to 5,421. ComfortDelGro has a total vehicle fleet of 13,000 in China itself.

Under a separate agreement, ComfortDelGro increased its shareholding in CCDT from 80 per cent to 90 per cent by pumping in another $1.36 million, bringing the group's total investment to $12.3 million.

The training school has a fleet of 110 vehicles and an annual enrolment of 10,000.

Singapore-headquartered ComfortDelGro, which also has operations in the UK, Ireland, Australia, Vietnam and Malaysia, has been striving to step up its presence in foreign markets.

In November, ComfortDelGro announced that it had acquired the Kefford Group - the fourth largest bus operator in the state of Victoria, Australia - for A$149.2 million (S$147.5 million) through its 51 per cent-owned subsidiary ComfortDelGro Cab charge Pty Ltd (CDC).

The acquisition of Kefford, which has a 16 per cent market share, is expected to cement CDC's status as the largest private bus operator in Australia.

"Our intentions are clear - we want to become a significant operator in the Australian bus sector," ComfortDelGro managing director and group CEO Kua Hong Pak had said previously.

"Kefford gives us a firm foothold in Victoria and, together with our operations in New South Wales, we now have a strong presence in Sydney and Melbourne and major regional areas in both states."

ComfortDelGro's overseas businesses contribute 42 per cent to group turnover. It aims to derive the bulk (70 per cent) of its total turnover from overseas within the next five to seven years.

In November, Comfort announced that it had acquired the Kefford Group - the fourth largest bus operator in the state of Victoria, Australia - for A$149.2 million through its 51 per cent-owned subsidiary ComfortDelGro Cabcharge Pty Ltd.

This article was first published in The Business Times on Dec 27, 2008.