Kerry Logistics forms JV with Spain's national postal service Correos
June 18, 2019: Kerry Logistics has entered into joint venture with Spain’s national postal service Sociedad Estatal de Correos y Telegrafos, SA (Correos), in which Kerry Logistics holds a majority interest.
This move by the Asia-based logistics services provider is to capitalise on the growing potential of China’s e-commerce exports.
The JV has been established to provide end-to-end cross-border e-commerce solutions from China to worldwide destinations.
The JV company will utilise Kerry Logistics’ broad experience in origin sortation, line haul and Customs clearance, and Correos’ years of expertise in the postal services, to bring service experience to the next level for customers including marketplaces and e-tailers.
Cross-border e-commerce exports from China recorded a 67 percent year-on-year increase in 2018, amounting to RMB56.12 billion, according to China’s General Administration of Customs.
To fulfil an increasing emphasis on e-commerce parcel security and compliance, a world-class sortation centre will be set up in Southern China under the new JV, equipped with an automated sorting system and stringent parcel screening and security controls to ensure speedy parcel handling and full compliance.
The facility, targeting to open in fourth quarter of 2019, will occupy an area of over 200,000 square feet and have a sorting capacity of 500,000 parcels per day.
William Ma, Group managing director of Kerry Logistics said: “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. Utilising our deep understanding of customers’ needs both in China and abroad, Kerry Logistics is confident in meeting the rapidly growing international demands through working closely with Correos.”
Juan Manuel Serrano Quintana, president of the Board of Directors of Correos said: “The new partnership with Kerry Logistics presents a unique opportunity for Correos to capture the outbound e-commerce parcel deliveries from China, which is the largest trade and economic partner for Spain in Asia.”
The fast-changing logistics landscape in China called for innovation and flexibility in order to capture and serve new and emerging business models and brands.