New York-listed Alibaba Group Holding Ltd’s 51 percent-owned logistics arm Cainiao Smart Logistics Network Ltd plans to gain a controlling stake in Hong Kong-based Shenzhen 4PX Express Co Ltd in a related party transaction, next year.
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Global delivery general manager Kevin Li, of the Hangzhou-based company, says it currently owns 45 percent in one of China’s largest cross-border transport firm by acquiring another six percent.
“Cainiao is a technology company (which handles the tech infrastructure) while Shenzhen 4PX carries out the actual logistic movement for our customers. Cainiao integrates Shenzhen 4PX and other logistic companies together to provide services. It is the most important part of Cainiao,” he adds.
Shenzhen 4PX expects 10 billion yuan ($1.5 billion) revenue this year, says Li, who is also its founder.
In 2018, it handled 450,000 million parcels and expects to hit its 600,000 target this year. The global firm has about 50 branches in China with some 3,000 employees in China and another 1,000 worldwide.
“Our coverage is the biggest in terms of other transnational logistics companies. We cover the world,” Li says.
The Cambodian government has been a key enabler for Alibaba and is eager to develop its infrastructure to facilitate the e-commerce giant’s strategy for the Mekong region.
“Right now, we are assessing our business infrastructure needs by working with local logistics players such as Shoprunback SAS and World Bridge International (Cambodia) Ltd to grow the sector here,” he adds.