Thailand Post is preparing to launch a joint venture with a Chinese logistics company in the second quarter of next year, aiming to boost its cross-border logistics transactions between the two countries.
Thailand Post’s president, Dhanant Subhadrabandhu, noted that the enterprise and a Chinese counterpart are finalizing the joint venture details, with the negotiations reportedly more than 60% complete.
Dhanant mentioned that Thailand Post would initially acquire a 25% stake in the joint venture, expected to be formalized in the second quarter of the next year.
He explained that starting with a 25% stake simplifies the creation of the joint venture.
As a state-owned entity, Thailand Post must undergo an extensive approval process to acquire a significant share in a joint venture with a private, particularly foreign, firm.
Mr. Dhanant highlighted that establishing the joint venture represents a strategic move to enhance Thailand Post’s international express service and expand its global market reach.
The company aims to be recognized as the most trusted brand in ASEAN within three years.
Last year, Thailand Post held the largest portion of the domestic logistics service market at 27%, with foreign companies, particularly from China, controlling the remainder.
The logistics division is a major revenue driver for Thailand Post, accounting for about 46% of its total income, followed by postal services at 33%, international services at 13%, retail operations at 5%, and other activities.
The joint venture will serve as our core facilitator for transactions of logistics services involving goods and products from China to the local market via the joint venture, and from the local market to the China market as well, Mr. Dhanant said.
For the first nine months of this year, Thailand Post reported revenues of 15.8 billion baht, supported by an increase in domestic transport volumes.
The Express Mail Service experienced an 8.07% growth year-over-year, fueled by high customer trust, speedy deliveries, and aggressive strategies to enhance revenue through both digital and physical channels.
The transport and logistics segment was the top revenue contributor, making up 46.5% of the total and marking a 3.34% increase compared to last year, in line with the growth seen in retail and e-commerce.
Mr. Dhanant noted that enhancing the customer experience in all business segments led to an 18.5% increase in domestic parcel services, reflecting elevated consumer confidence, corroborated by a 91.9% confidence rating in their 2024 brand trust survey.
