Singapore Post today stepped up its logistics expansion with the acquisition of a 20% stake inShenzhen 4PX Express for RMB 60 million (€6.4 million) to gain a foothold in China’s booming
e-commerce market.4PX, based in Shenzhen, provides international express delivery services, international freightforwarding, as well as logistics services such as warehouse management, inventory management, orderfulfilment and processing. It also offers express delivery to support cross-border e-commercetransactions from China to the rest of the world (mainly USA, Europe and Japan), and is the globaldistribution partner for eBay and PayPal in the China market. It also cooperates with eBay in HongKong and has set up a logistics centre in the territory to handle eBay shipments.
The Chinese company already cooperates with SingPost as well as Hongkong Post. For internationalexpress, the company uses DHL, UPS, Indian firm DTDC, Japan’s Sagawa and Aramex, according toinformation on its website. It also offers a slower international postal parcel product under thePostLink product name with delivery through national postal operators.
Li Yue, Managing Director of 4PX, said: “We are excited with this investment by SingPost withwhom we have fostered a good business relationship since 2009 as their customer. 4PX will continueto focus on the cross-border e-commerce market and we aim to be a leading global e-commercelogistics player in China with a global distribution network, providing customers with a wideoption of reliable, cost effective and secured express delivery and logistics services.”
Ng Hin Lee, SingPost’s Chief Executive Officer (Postal and Corporate Services), who isoverseeing the group’s strategic acquisition portfolio, said: “We are pursuing growth in regionallogistics and e-commerce, both of which offer tremendous potential in the new globally connectedmarketplace.
“This investment with 4PX is a strategic one for SingPost as it gives us a platform for entryinto the outbound logistics and the high-growth e-commerce market in China and globally, especiallyinto USA, UK and Australia where 4PX has set up operations. The investment will allow us to furtherenhance and broaden our presence and network in the Asia Pacific region. It certainly helps us inour drive to develop a more balanced revenue and earnings portfolio, both from the standpoints ofgrowing non-mail revenue and increasing overseas contribution.”
Dr Wolfgang Baier, SingPost’s Chief Executive Officer (International), added: “Our corecompetency and existing infrastructure provide us a good vantage point to further develop thesebusinesses. We have been strengthening our regional logistics network by investing in logisticscompanies which provide the right fit for SingPost’s expansion including GD Express Carrier Berhadin Malaysia and Indo Trans Logistics Corporation in Vietnam. This investment in 4PX will furtherboost our ambition in e-commerce and regional logistics, leveraging our e-fulfilmentcapability.”
SingPost made the acquisition through its wholly-owned subsidiary, Quantium SolutionsInternational Pte Ltd. (“QSI”). Its regional business currently spans 10 countries in Asia Pacificthrough Quantium Solutions, a mail-logistics solutions provider and DataPost Pte Ltd, a hybrid mailbusiness.
