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Courier companies expect greater opportunities as initiative progresses

By Chai Hua in Shenzhen | China Daily | Updated: 2017-05-15 08:37
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SF Holding, China's biggest private courier company, expects countries and regions participating in the Belt and Road Initiative to evolve rapidly and become the main forces behind the company's expanding international business, according to a senior executive.

"Countries and regions along the Belt and Road Initiative, especially Southeast Asian, South Asian and Eastern European countries, will become our core driving force in the future," said Ray Li, vice-president of the company's international business unit.

However, he conceded that currently the majority of SF Holding's delivery work is in European countries and the United States.

The company's service covers about 200 countries and regions, and it has about 124,000 employees in 14 countries. Last year, its international business revenue soared by about 309 percent to 1.1 billion yuan ($159 million).

"Our international business only accounts for about 2 percent of our total revenue now, so the potential is huge," Li told China Daily.

The company is upgrading its delivery service into an integrated operation covering the whole industry chain, such as funding, cross-border payments and market analysis.

The Shenzhen-listed company has been aggressively expanding its global express services. While it has partnered with local carriers to set up a network covering about 200 countries and regions, it has also established 10 international branches. The first was founded in Singapore in 2010, and its latest offices were established in Vietnam and Thailand.

Li said the rapid growth of cross-border e-commerce in the region is one of the key reasons for his confidence in the market.

"Many people have the misconception that the Belt and Road Initiative is asset-heavy and focuses on B2B, but I believe the key is to encourage the development of B2C and C2C (customer to customer) business," Li said.

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