TURKISH Airlines, Chinese cargo giant ZTO Express and Hong Kong-based PAL Air Ltd have signed a memorandum of understanding (MoU) in Istanbul to establish a joint venture company to operate as a global express/courier company mainly focusing on the global e-commerce market with full door to door services.
The partnership is regarded not only as a huge strategic step for Turkey prior to the opening of the Istanbul's new airport but a game changer for the global express transport business, reported eTurboNews.
The joint venture is anticipated in five years' time to generate US$2 billion in revenue and its growth is expected to continue gradually parallel to e-commerce demand.
Istanbul's new airport will be opened by October 29 and it will function as Turkish Airlines' main operating hub. This base will gradually provide Turkish Cargo with up to four million tons of cargo handling capacity, becoming one of the top five air cargo brands of the world.
The services of the new Hong Kong-based global express joint venture company will include all door to door logistics activities; trucking, collection and distribution, freight transport, cross docking and last mile delivery. It will also provide warehouse management, order and supply chain management when necessary.
Said ZTO Express chairman Mei Song Lai: 'In 2017 ZTO's annual parcel volume reached 6.22 billion parcels. As the largest express delivery company in the world ZTO is an open platform built on core values of 'pro-create and share'.
'Because of the innovation and globalisation of new retail and e-commerce, China's logistics industry is provided with tremendous new growth opportunities. ZTO will continue to solidify and strengthen its competitive advantage for domestic growth and will actively explore and expand international markets, building cross-border business as an important growth engine for the future.'
ZTO is the world's largest parcel distributer, handling 28 million parcels daily and has the widest express delivery coverage in China. It is said Alibaba plans to buy 10 per cent of ZTO Express for US$1.38 billion. The deal is expected to close this month.
PAL Air has launched a business to consumer wholesale postal express service including last mile fulfillment to retail express services providers in Hong Kong, mainland China, Thailand, Vietnam, India and the US.
The partnership is regarded not only as a huge strategic step for Turkey prior to the opening of the Istanbul's new airport but a game changer for the global express transport business, reported eTurboNews.
The joint venture is anticipated in five years' time to generate US$2 billion in revenue and its growth is expected to continue gradually parallel to e-commerce demand.
Istanbul's new airport will be opened by October 29 and it will function as Turkish Airlines' main operating hub. This base will gradually provide Turkish Cargo with up to four million tons of cargo handling capacity, becoming one of the top five air cargo brands of the world.
The services of the new Hong Kong-based global express joint venture company will include all door to door logistics activities; trucking, collection and distribution, freight transport, cross docking and last mile delivery. It will also provide warehouse management, order and supply chain management when necessary.
Said ZTO Express chairman Mei Song Lai: 'In 2017 ZTO's annual parcel volume reached 6.22 billion parcels. As the largest express delivery company in the world ZTO is an open platform built on core values of 'pro-create and share'.
'Because of the innovation and globalisation of new retail and e-commerce, China's logistics industry is provided with tremendous new growth opportunities. ZTO will continue to solidify and strengthen its competitive advantage for domestic growth and will actively explore and expand international markets, building cross-border business as an important growth engine for the future.'
ZTO is the world's largest parcel distributer, handling 28 million parcels daily and has the widest express delivery coverage in China. It is said Alibaba plans to buy 10 per cent of ZTO Express for US$1.38 billion. The deal is expected to close this month.
PAL Air has launched a business to consumer wholesale postal express service including last mile fulfillment to retail express services providers in Hong Kong, mainland China, Thailand, Vietnam, India and the US.