As China continues to invest more in South-East Asian nations, SF Express said it will prioritise development in the region and further expand in the Middle East and Latin America. — China Daily
SHANGHAI: Major domestic courier companies are expanding their global footprint and increasing logistics efficiencies this year, as they seek growth opportunities beyond the Chinese market.
Shenzhen Stock Exchange-listed SF Express, one of the largest courier companies by volume of packages delivered and sales revenue, submitted a listing application to the Hong Kong stock exchange in September as it aims to further expand its presence abroad.
As China continues to invest more in South-East Asian nations, the company said it will prioritise development in the region and further expand in the Middle East and Latin America.
With trade growing between China and Singapore, SF has further upgraded its cross-border delivery services, achieving overnight express delivery from Singapore to nine cities in China and Malaysia.
“SF will accelerate the speed of its overseas business expansion and build an international brand image. Our main purpose is to introduce global capital and expand rapidly in the future through capital methods,” Wang Wei, chairman and founder of SF, said during a recent shareholders’ meeting.
China’s first cargo-focused airport, Ezhou Huahu Airport, is a customised airport located in Ezhou, Central China’s Hubei province, that SF built with the local government and came into operation last year.
This year, SF Airlines, the cargo arm of the group, launched international cargo flights connecting Ezhou with cities such as New York, Los Angeles, Frankfurt, Abu Dhabi, Singapore, Kuala Lumpur and Osaka.
In the first three quarters, SF achieved sales revenue of 189 billion yuan (US$26.4bil). In the same period, its net profit reached 6.26 billion yuan, up 40% year-on-year, according to the company’s earnings report.
J&T Express, another domestic courier firm, went public in Hong Kong in late October. The company plans to raise about 3.23 billion yuan through its listing.
About 30% of the funds raised will be used to expand logistics networks, upgrade infrastructure and strengthen sorting and warehousing facilities in South-East Asia and other markets, it said.
“The eCommerce market in China has entered a relatively stable period after experiencing rapid growth in the past decade,” said Eric Chen, executive director of consultancy Frost and Sullivan in China.
“However, some emerging markets overseas, including South-East Asia, Latin America and the Middle East, have enormous growth potential in the demand for eCommerce shipping and development of logistics infrastructure.”
In 2022, global logistics expenditure hit US$10.8 trillion, with that in the Asian market reaching US$4.9 trillion, according to findings by Frost and Sullivan.
The global logistics expenditure is expected to touch US$13.5 trillion by 2027, it said.
YTO Express, another leading courier company in China, is also expanding its international network.
With deepening strategic cooperation between China and Bangladesh, YTO has been increasing cargo flights connecting the two countries.
“The trend of economic globalisation is irreversible, and the trend of supply chain’s globalisation is becoming increasingly prominent,” Yu Weijiao, president and founder of YTO, said during an industry forum in Hangzhou, Zhejiang province.
“Express delivery companies must seize the opportunity to expand their operations overseas.”
The company has launched flights connecting Bangladesh with Nanning in the Guangxi Zhuang autonomous region, Ningbo in Zhejiang province and Kunming in Yunnan province.
The routes will help improve logistics transportation efficiency and promote cross-border trade between China and South Asia, Yu said.
Cainiao Group, the logistics arm of Chinese tech company Alibaba Group Holding Ltd, recently upgraded logistics solutions in its major overseas markets of North America, Latin America and the Middle East.
Cainiao has increased its local distribution footprint in the United States, and the local delivery time in major urban areas such as Los Angeles and New York has been reduced to two days.
In the Middle East, the cross-border logistics process in countries such as the United Arab Emirates and Oman has been reduced from 30 days to 12 to 14 working days, the company said. — China Daily/ANN
