Thailand Post is set to establish a joint venture with a leading Chinese logistics company in early 2025 to boost its volume of logistics traffic from China to the domestic market and from the Thai market to China amid the influx of Chinese products in the local e-commerce market.
The move is part of the organisation's efforts to drive growth of its international express service.
Thailand Post president Dhanant Subhadrabandhu said the state agency aims to be Asean's most trusted brand within the next three years.
He added that Thailand Post has been in talks with a giant logistics provider in China for months and both are expected to wrap up the joint venture conditions and enter into the agreement by the first quarter of 2025.
Mr Dhanant said the state agency aims to be Asean's most trusted brand within the next three years.
Mr Dhanant said the logistics business contributes around 45% of its total revenue, while the postal business group generates around 33%, international service group 13%, retail business group 5% and the rest from others.
Thailand Post's market share of domestic logistics services is around 32%, while foreign logistics providers, especially those from China, secure the rest.
"The joint venture model will be a core facilitator that will draw transactions of logistics services for goods and products from China to the local market and of local products to the Chinese market," Mr Dhanant said.
INTERNATIONAL SERVICE TARGET
Thailand Post reported first-half revenue this year of 10.6 billion baht, with a profit of 136.6 million baht. The international service generated 1.3 billion baht, accounting for 12.2% of total revenue.
The top five international shipping destinations are the US, Japan, the United Kingdom, South Korea and Australia.
Mr Dhanant said international services in the second half of the year are projected to generate at least 1.8 billion baht in revenue, accounting for 15% of total revenue, mainly contributed by flagship services such as EMS World, international parcel services and registered international services.
The company is pushing forward with its EMS World international express service to propel its businesses towards the global market.
Key highlights include diverse shipping routes, enhanced global postal cooperation, partnerships with private sector players to close logistics gaps, alliances with e-commerce platforms and opening new international shipping routes to boost efficiency and ensure Thai entrepreneurs reach every global destination.
The entrance to Post Cafe at Samsen Nai Post Office.
"It is expected that by the end of 2024, the e-commerce market value in Thailand will exceed 700 billion baht," Mr Dhanant said.
With this positive momentum, Thailand Post aims to be a crucial driver of the e-commerce sector by providing a comprehensive platform and logistics services to facilitate convenient shipping.
The company is well-prepared with an extensive network, service points, transportation methods and reliable services that comply with global logistics and trade regulations, Mr Dhanant added.
THE PARTNERSHIP PLATFORM
Mr Dhanant said Thailand Post's core service to facilitate and drive businesses to the global market is EMS World, which has gained immense popularity in the international services sector.
Additionally, the company is equipped to handle international shipping and increase opportunities for various businesses via partnerships, he added.
First, it is done through diverse shipping routes of commercial airlines to ensure quick delivery to distant destinations, ground transport to neighbouring countries like Laos and Malaysia, rail transport from Thailand to Laos and China, and sea transport to destinations like Japan, South Korea, Taiwan, the US and the Netherlands, with onward delivery to European cities.
Second, the company enhances service quality through partnerships with global postal organisations like the Universal Postal Union (UPU), ASEAN Postal Business Union (ASEANPOST), ASEANPOST++ (ASEANPOST plus China, Hong Kong, Japan, South Korea and India) and the Kahala Posts Group (KPG).
Third, it collaborates with partners to close logistics and final delivery gaps by working with import and export agents. These partners can handle cargo shipments and complete customs procedures at the destination.
Fourth, Thailand Post has formed partnerships with platforms such as eBay, which collaborates on international shipping for sellers in the Asia-Pacific region through the eBay SeaPass shipping platform.
Last, the company is expanding international shipping routes by coordinating with foreign partners and airlines to establish a broader logistics network and provide postal services to additional destinations.
For destinations without direct flight services, arrangements are made with intermediary postal services for both closed and open transit, ensuring that Thailand Post can deliver and transport items through a globally connected postal network, Mr Dhanant said.
"The overall strength of Thailand Post's international delivery services lies in its extensive domestic and international network, covering 205 destinations in 193 countries," he added.