COSCO, TNT to start logistics joint venture
The COSCO Group and Dutch mail and global logistics provider TNT Monday in Beijing signed a letter of intent to establish a logistics joint venture aimed at “becoming the world’s recognized leader in supply chain management in the Asia Pacific region.”
The equal share joint venture is scheduled to be operational from next year, integrating COSCO Logistics’ home appliance business in China and TNT’s Pallecon Logistics materials handling business in Australia. The new venture will have about 1,000 employees and a combined warehouse space of approximately 1 million square meters.
“This partnership with COSCO is an important and significant step for our China strategy. The marriage of our know-how and global position in logistics to COSCO’s shipping strength and COSCO Logistics’ China leadership is an excellent match that has potential to grow rapidly and become industry leader for China domestic business and China linked services in the world,” said Peter Bakker, TNT’s chief executive officer.
“This is a partnership between two powerful players, embodying a significant move in COSCO’s overseas expansion as an important component of COSCO’s strategic transformation from a global shipping carrier into a global logistics player,” said Wei Jiafu, president of the COSCO Group.