Thailand Post plans to launch a joint venture with a prominent Chinese logistics firm in early 2025, aimed at increasing logistics traffic from China to Thailand and vice versa, amid a surge of Chinese products in the local e-commerce market.
This initiative is part of the organization’s strategy to enhance its international express service capabilities.
Thailand Post President Dhanant Subhadrabandhu stated that the goal is to become the most trusted brand in ASEAN within the next three years. He mentioned that the state agency has been in discussions with a major logistics provider in China for several months, with expectations to finalize the joint venture conditions and formalize the agreement by the first quarter of 2025.
According to Mr. Dhanant, the logistics sector accounts for about 45% of Thailand Post’s total revenue, while the postal services contribute approximately 33%, international services make up 13%, retail accounts for 5%, and the remaining revenue comes from various other sources.
Thailand Post currently holds a 32% market share of domestic logistics services, with international competitors, particularly from China, capturing the rest.
“The joint venture model will play a key role in facilitating logistics transactions for goods flowing from China to the local market, as well as local products heading to the Chinese market,” Mr. Dhanant noted.
International Service Outlook
In the first half of this year, Thailand Post reported a revenue of 10.6 billion baht, with profits reaching 136.6 million baht. International services generated 1.3 billion baht, accounting for 12.2% of the total revenue.
The top five destinations for international shipping include the US, Japan, the United Kingdom, South Korea, and Australia. Mr. Dhanant expects that international services in the second half of the year will generate at least 1.8 billion baht in revenue, making up 15% of total revenue, primarily driven by flagship services like EMS World, international parcel services, and registered international services.
The agency aims to enhance its EMS World international express service to better position itself in the global market. Key initiatives include diverse shipping routes, strengthened global postal cooperation, partnerships with private sector entities to bridge logistics gaps, collaboration with e-commerce platforms, and the establishment of new international shipping routes to improve efficiency and ensure that Thai entrepreneurs can reach global destinations.
“It is projected that by the end of 2024, the e-commerce market value in Thailand will exceed 700 billion baht,” Mr. Dhanant added. With this momentum, Thailand Post is set to play a pivotal role in the e-commerce sector by providing a comprehensive platform and logistics services that enable seamless shipping.
The company is well-equipped with a vast network, numerous service points, varied transportation methods, and reliable services aligned with global logistics and trade regulations, according to Mr. Dhanant.
Partnership and Service Expansion
Mr. Dhanant emphasized that Thailand Post’s primary service to support businesses in going global is EMS World, which has become increasingly popular in the international services landscape.
The company is also enhancing its capacity for international shipping and expanding opportunities for various businesses through partnerships. This is facilitated by:
- Utilizing a range of shipping routes via commercial airlines to ensure swift delivery to remote locations, as well as ground transport to neighboring countries such as Laos and Malaysia, rail transport to Laos and China, and sea transport to countries like Japan, South Korea, Taiwan, the US, and the Netherlands, with onward distribution to European cities.
- Improving service quality through collaborations with global postal organizations such as the Universal Postal Union (UPU), ASEAN Postal Business Union (ASEANPOST), ASEANPOST++ (including partnerships with China, Hong Kong, Japan, South Korea, and India), and the Kahala Posts Group (KPG).
- Working with partners to address logistics and final delivery challenges through collaboration with import and export agents, capable of handling cargo shipments and navigating customs procedures at their destinations.
- Forming alliances with platforms like eBay to facilitate international shipping for sellers in the Asia-Pacific region through the eBay SeaPass shipping solution.
- Expanding international shipping routes by coordinating with foreign partners and airlines to create a broader logistics network and improve postal services to additional destinations. For areas lacking direct flight services, Thailand Post arranges for intermediary postal services for closed and open transit, ensuring the ability to deliver items through a globally connected postal system, Mr. Dhanant explained.
“The strength of Thailand Post’s international delivery services resides in its extensive domestic and international network, covering 205 destinations across 193 countries,” he concluded.
