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UPS, SF Holding to establish JV for international delivery services

LBR Staff Writer Published 29 May 2017

UPS and SF Express' parent firm SF Holding have unveiled plans to establish a joint venture and collaborate to develop and provide international delivery services.

The services will initially start from China to the US. They will be expanded to other destinations in near future.

The JV, which is subject to regulatory approval, will benefit from the complementary networks, service portfolios, technologies and logistics expertise of both firms.

The joint services offerings are said to combine the strength of SF’s broad Chinese network, including around 13,000 service points, with UPS’ integrated network covering around 220 countries.

In addition, the JV will provide customers with wide coverage, additional routing options and increased capacity, as well as flexibility in transit times and service options.

UPS Asia Pacific president Ross McCullough said: “UPS is excited to form a joint venture with SF.  This joint venture will support products that provide competitive benefits to our Chinese customers who trade or seek to trade internationally.

“Our combined efforts will result in new logistics products and services to simplify and accelerate B2B and B2C customers’ cross-border trade.”

SF group vice president Alan Wong said: “China is leading the world in terms of e-commerce market size, growth, penetration and mobile business usage.”

Recently, UPS has unveiled plans to add 42% more package-processing capacity and 200,000ft² of space to its hub in Lenexa, Kansas, US.

The company said construction work started on the project and the facility will total about 430,000ft² when completed in 2020 with the latest operational technology, processing efficiency and network flexibility.

Image: UPS and SF Holding to create new JV to offer international delivery services. Photo: courtesy of United Parcel Service of America, Inc.