Turkish Cargo has signed a joint venture with ZTO Express and PAL Air to create a global express company focusing on the global e-commerce market.
The partnership promises not only to be a huge strategic step for Turkey prior to the opening of Istanbul New Airport but a game changer for global express business, was sealed and signed by Turkish Airlines chairman of the board and the executive committee, Ilker Ayci; ZTO Express chairman, Mei Song Lai; and PAL Air vice chairman, Vivian Lau.
The services of the new Hong Kong-based global express joint venture will include all door-to-door logistics activities; trucking, collection and distribution, freight transportation, cross docking and final mile delivery, as well as warehouse management, order and supply chain management when necessary.
Ayci says: “The Joint Venture, after reaching quickly to fully functional and operational levels, is expected to take place within the world’s largest integrators. In five years’ time it will generate over $2 billion of revenue. The growth is expected to continue gradually parallel to the e-commerce demand.”
He adds that the new Istanbul Airport will open on 29 October and provide Turkish Cargo with up to four million tonnes of cargo capacity. “The flow of e-commerce products globally with this Joint Venture and via Istanbul Mega Hub; will provide maximum value to our customers worldwide.”
ZTO distributes 28 million parcels a day and Alibaba Group has announced it will buy 10 per cent through an investment of $1.38 billion in a deal expected to close this month.
Speaking at the ceremony, Lai says: “The cooperation between the three partners will form synergy by combining strong core competencies and integrating key resources, and will undoubtfully effect positive progress in the areas of global express delivery, warehousing, cargo freight, and aviation route development and more, and will ultimately benefit traders and consumers globally.”
PAL Air has launched B2C wholesale postal express services including last mile fulfilment to the retail express service providers in Hong Kong, China, Thailand, Vietnam, India and the USA.
Lau adds: “PAL is honoured to have played a role in creating a three parties venture that will unleash the best of three worlds, together with two global giants, Turkish Airlines and ZTO. Turkish Airlines, ZTO, and PAL looks forward to the creation of a world class integrator.”
