Delivery firms expand operations

Delivery firms expand operations

Kerry Worldbridge Logistics Ltd, a joint venture between Hong Kong-listed Kerry Logistic Network Limited and Worldbridge International Group (WIG), last week acquired the majority share of Cambodia Express Group, a local door-to-door logistics firm.

The joint venture will offer international express and domestic door-to-door delivery services throughout Cambodia, said Sear Rithy, director of Kerry Worldbridge Logistics said.

“Our partner, Kerry Logistic will bring tracking system technology to replace the traditional way of using signatures on paper,” he said.

Meanwhile, DB Schenker Cambodia, the logistics arm of German conglomerate Deutsche Bahn, on February 9 announced it had taken over operations from its former local partner, SGL (Cambodia).

Cambodia still depends heavily on unlicensed or informal delivery services such as bus or taxi operators to transport documents, goods or gifts.

Chea Sareth, director Cambodia Express Group, says the rudimentary and informal delivery market is notoriously untrustworthy and has hampered consumer confidence in legitimate logistics agencies.

“Local delivery services have not yet been so successful in Cambodia because informal operators have caused a lack of trust in the industry as a whole,” Sareth said.

“Additionally, unclear addresses in Cambodia forces delivery companies to depend solely on mobile phone contact with receivers, which brings the cost of operation higher.”

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