Firms sign lo­gis­tics part­ner­ship

China Daily (USA) - - BUSINESS - By CHAI HUA in Shen­zhen, Guang­dong grace@chi­nadai­lyhk.com

China’s lo­gis­tic com­pa­nies are team­ing up to seize the self-ser­vice de­liv­ery locker mar­ket, which has be­come the fo­cus of in­ten­si­fied com­pe­ti­tion in the sec­tor.

Lo­gis­tic gi­ant SF Ex­press on Thurs­day an­nounced it has signed a strate­gic co­op­er­a­tion agree­ment with China In­ter­na­tional Marine Con­tain­ers (Group) Co Ltd, the coun­try’s largest trans­porta­tion equip­ment pro­ducer by rev­enue.

The two com­pa­nies in­tend to seek fur­ther co­op­er­a­tion in trans­porta­tion, ex­press de­liv­ery, equip­ment, tech­nol­ogy and fund­ing, as well as the China-Europe Rail­way Ex­press and other ac­tiv­i­ties in the Belt and Road area.

The lat­est step is the ac­qui­si­tion of CIMC Elec­tric­ity Com­merce and Lo­gis­tics Tech­nol­ogy Co Ltd by Shen­zhen-based Hive Box Tech­nol­ogy, one of SF Ex­press’ in­vest­ment in smart de­liv­ery locker busi­ness.

CIMC Elec­tric­ity Com­merce, a sub­sidiary of CIMC, was es­tab­lished in 2014 in Shen­zhen and owns around 14,000 smart de­liv­ery locker cab­i­nets, while Hive Box has more than 60,000 such cab­i­nets.

Th­ese lock­ers are usu­ally sit­u­ated in res­i­den­tial com­mu­ni­ties, of­fice build­ings, col­lege cam­puses and other pub­lic zones. If users are not avail­able to pick up their ex­press items, couri­ers can leave the pack­ages in th­ese lock­ers. Users will re­ceive a pass­word on their mo­bile phones to open their lock­ers.

After the ac­qui­si­tion, Hive Box’s aim is to reach 90,000 locker units by the end of this year, deal­ing with five mil­lion parcels per day and cov­er­ing 70 per­cent of the mar­ket in Bei­jing, Shang­hai, Guangzhou and Shen­zhen.

Zhao Xiaomin, a Shang­haibased lo­gis­tics in­dus­try con­sul­tant, be­lieves Hive Box will be­come the lead­ing com­pany in the smart locker in­dus­try and the to­tal quan­tity pro­vided by the whole in­dus­try is around 170,000 units.

In re­cent years, smart de­liv­ery lock­ers have boomed due to the de­vel­op­ment of e-com­merce in China.

Sposter and State-owned China Post, an­other two ma­jor play­ers in the in­dus­try, merged their locker op­er­a­tions in July and to­gether own about 77,000 smart locker cab­i­nets, ac­cord­ing to China’s news por­tal sina.com.

Re­cently, China’s lead­ing home ap­pli­ance man­u­fac­turer Haier and e-com­merce plat­form JD.com, also joined the smart locker mar­ket.

ZHU XINGXIN / CHINA DAILY

Work­ers of SF Ex­press sort pack­ages at an out­let of the com­pany in Bei­jing.

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