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Kerry Logistics forms Joint Venture with Spain's National Postal Service Correos to Capitalise on China's E-commerce Export Growth

Posted Jun 17, 2019 @ 18:21 CDT

HONG KONG, June 17, 2019 - Kerry Logistics Network Limited ('Kerry Logistics'; HKEx: 0636) is set to capitalise on the growing potential of China's e-commerce exports by joining hands with Spain's national postal service Sociedad Estatal de Correos y Telegrafos, S.A. ('Correos') to establish a joint venture ('JV') to provide end-to-end cross-border e-commerce solutions from China to worldwide destinations, in which Kerry Logistics holds a majority interest.

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Leveraging Kerry Logistics' broad experience in origin sortation, line haul and customs clearance, and Correos' years of expertise in the postal and commercial solutions, the JV aims to bring commercial services experience to the next level for customers including marketplaces and e-tailers. Cross-border e-commerce exports from China recorded a 67% year-on-year increase in 2018, amounting to RMB56.12 billion, according to China's General Administration of Customs.

To fulfill 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 2019 Q4, will occupy an area of over 200,000 sq ft and have an initial 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. As China's cross-border e-commerce exports grow, we are determined to prepare ourselves for seizing emerging opportunities. 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. It also offers a way forward for Correos to create a sustainable business model to meet the growing demand in the booming e-commerce business and the ever-changing customer needs."

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. Kerry Logistics will continue to broaden and deepen its reach in China selectively.

About Kerry Logistics Network Limited (HKEx: 0636)

Kerry Logistics is an Asia-based, global 3PL with the strongest network in Asia. Its core competency is providing highly customised solutions to multinational corporations and international brands to enhance their supply chain efficiency, reduce overall costs, and improve response time to market. Kerry Logistics has a network covering 53 countries and territories, and is managing 60 million sq ft of land and logistics facilities worldwide, providing customers with high reliability and flexibility to support their expansion and long-term growth. Kerry Logistics Network Limited is listed on the Main Board of the Hong Kong Stock Exchange and is a selected Member of the Hang Seng Corporate Sustainability Index Series 2017-2018.

About Correos

Correos is the 100% state-owned national postal service of Spain. It is one of the largest postal services in the world and handles 5.4 billion pieces of mail sent each year. Correos began in 1716 as a public service, for and belonging to everyone. Today it is the best provider of physical and digital communications and deliveries in Spain, providing an efficient, high quality and sustainable service; with the best professionals, the largest presence throughout the territory, and the most innovative equipment.

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