Thailand Post is preparing to launch a joint venture with a prominent Chinese logistics company in early 2025. This strategic partnership aims to enhance logistics traffic from China to Thailand and vice versa, responding to the growing influx of Chinese products in the local e-commerce market.
This initiative is part of Thailand Post’s broader strategy to expand its international express service offerings.
Thailand Post president Dhanant Subhadrabandhu announced that extensive negotiations have been underway with the Chinese logistics provider, with both parties expected to finalize the joint venture details by the first quarter of 2025.
Logistics currently contributes approximately 45% of Thailand Post’s total revenue, while the postal business accounts for about 33%. The remaining revenue comes from international services (13%), retail operations (5%), and other sources.
Thailand Post enjoys a 32% market share in domestic logistics, while foreign logistics companies, notably from China, occupy the remainder of the market.
“This joint venture will significantly facilitate logistics transactions for goods moving between China and Thailand,” said Dhanant.
For the first half of this year, Thailand Post reported revenue of 10.6 billion baht, with a net profit of 136.6 million baht. The international services segment alone generated 1.3 billion baht, making up 12.2% of total revenue.
The primary international shipping destinations for Thailand Post included the US, Japan, the UK, South Korea, and Australia. For the second half of the year, international services are projected to generate at least 1.8 billion baht, contributing roughly 15% to total revenue, largely driven by flagship offerings such as EMS World and international parcel services.
The company is focusing on enhancing its EMS World international express service to strengthen its presence in the global market.
Key initiatives include diverse shipping routes, improved global postal collaboration, partnerships to enhance logistics capabilities, and the introduction of new international shipping routes to maximize efficiency for Thai entrepreneurs aiming to reach global customers.
It is anticipated that by the end of 2024, the e-commerce market in Thailand will surpass 700 billion baht, positioning Thailand Post as a pivotal player in the sector by delivering a robust logistics framework to support convenient shipping solutions.
The company boasts an extensive infrastructure, including numerous service points and transportation options, ensuring compliance with worldwide logistics and trade standards, according to Dhanant.
Dhanant emphasized that EMS World is central to Thailand Post’s strategy to connect businesses to the international market, leveraging its popularity in the international services landscape.
The company employs various strategies to boost international shipping opportunities, including using commercial airline routes for rapid delivery, ground transport to neighboring countries, rail shipments to Laos and China, and maritime routes to locations like Japan and the US.
Further enhancements in service quality stem from collaborations with notable global postal organizations, including the Universal Postal Union and ASEAN Postal Business Union.
Thailand Post is also working with partners to address logistics gaps by engaging import and export agents skilled in managing cargo shipments and customs procedures.
The logistics network is expanding through partnerships with additional platforms and airlines, establishing a more extensive logistics web to improve postal services across numerous destinations.
Dhanant concluded by highlighting that Thailand Post’s international delivery capabilities are reinforced by its comprehensive network spanning 205 destinations in 193 countries.
