Thailand Post to Partner with Chinese Logistics Firm in New Venture
Thailand Post to Acquire 25% Stake in China Joint Venture to Boost Cross-Border Logistics
Thailand Post is set to form a joint venture with a Chinese logistics company by the second quarter of next year, aiming to enhance its cross-border logistics operations between Thailand and China.
According to Dhanant Subhadrabandhu, president of Thailand Post, negotiations with the Chinese firm are over 60% complete.
In this venture, Thailand Post will hold a 25% stake, a move intended to simplify the joint venture's establishment.
As a state enterprise, Thailand Post faces a lengthy approval process if it seeks a larger share, especially with a foreign private entity.
This joint venture is part of Thailand Post's strategy to expand its international express services and position itself as the most trusted logistics brand in ASEAN over the next three years.
Last year, Thailand Post held the largest domestic market share at 27%, with foreign providers, notably from China, dominating the remainder.
The company's logistics services contribute 46% of its total revenue.
For the first nine months of the reported year, Thailand Post achieved a revenue of 15.8 billion baht, with a notable 8.07% growth in its Express Mail Service.
The joint venture is expected to facilitate the flow of goods between China and Thailand, bolstering trade and capitalizing on growth in the retail and e-commerce sectors.