Logo of Phnom Penh Post newspaper Phnom Penh Post - China logistics giant forges on with foray into Kingdom

China logistics giant forges on with foray into Kingdom

China logistics giant forges on with foray into Kingdom

Chinese smart supply chain solutions and logistics services giant BEST Inc has expanded into Cambodia as part of its plans to build an efficient logistics network across Southeast Asia.

Operating in the Kingdom as BEST Express Cambodia, the company on Thursday announced its entry into Cambodia, Malaysia and Singapore, following its launch in Vietnam and Thailand last year.

It said: “BEST Express Cambodia is committed to provide parcel delivery service throughout Cambodia for e-commerce companies, home shopping channels, as well as individual customers.

“We strive to serve customers with better quality, convenience, security and value. Here you can find your nearest service station and rates, book a free parcel pickup, and track your order.”

BEST Inc founder, chairman and CEO Johnny Chou said the expansion is central to the company’s strategy to capitalise on the Covid-19-fuelled storm of e-commerce activity.

He said: “We are excited to develop our logistics networks in Southeast Asia, a key focus area of our global strategy.

“The outbreak of Covid-19 accelerated and amplified consumers’ reliance on e-commerce and created even larger potential opportunities in the region.

“We are confident that our technology-enabled logistics services and high-quality express delivery options will be a critical service component for both merchants and consumers, during both this difficult period and beyond it.”

By leveraging its asset-light model and successful experience in Thailand and Vietnam, BEST plans to operate twelve sortation centres and around 400 service stations across Cambodia, Malaysia and Singapore over the next three years, the company said.

A sortation centre is the final step in an order delivery chain where mail is routed to its final delivery destination.

BEST said: “This includes two customised flagship sortation centres in Phnom Penh and Kuala Lumpur that will be equipped with cutting-edge automation equipment, such as high-speed automatic sorting lines and dimension-weight-scanning systems.”

With 360 million mobile-savvy internet users, Southeast Asia’s e-commerce sector is on track to reach $150 billion by 2025, skyrocketing 294.74 per cent from $38 billion last year, a joint research report by Google Inc, Temasek Holdings Pte Ltd and Bain & Company Inc said.

BEST’s total parcel volume from Southeast Asia reached 8.8 million units in the first quarter of this year, it said.

The company also announced to bump up its international logistics solutions and launch cross-border services between China and the five Southeast Asian markets this month.

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