HONG Kong-based logistics company Kerry Logistics has announced a joint-venture with Spain's national postal service, Sociedad Estatal de Correos y Telegrafos, to provide end-to-end cross border services for companies engaged in e-commerce exports from China.
Under the deal, the two entities will establish a new 200,000 square-foot sorting centre in Southern China to be equipped with an automated sorting system and security controls for parcel screening. The centre is expected to have an initial sorting capacity of 500,000 parcels per day and is set to open in the fourth quarter of this year.
According to China's General Customs Administration, cross-border e-commerce exports from China increased 67 per cent year on year in 2018, totalling CNY56.12 billion (US$8.1 billion), reports New York's Air Cargo World.
With China being Spain's largest economic partner in Asia, "the new partnership with Kerry Logistics presents a unique opportunity for Correos to capture the outbound e-commerce parcel deliveries from China," Juan Manuel Serrano Quintana, president of the Board of Directors of Correos, said in a press release.
Group managing director of Kerry Logistics, William Ma, commented that "the JV combines the diverse capabilities of its two partners, each complementing the other to refine the process of e-commerce parcels handling and deliveries. As China's cross-border e-commerce exports grow, we are determined to prepare ourselves for seizing emerging opportunities."