Supply chain and logistics service provider BEST Inc’s (BEST) largest sorting centre in Southeast Asia, with a total area of 220,000 sq is slated to open in Selangor next year.
In a statement, the company said it also aimed to connect Thailand, Vietnam, Singapore and Malaysia in its logistics network, better enabling cross-border express delivery among these countries next year.
Its chairman and chief executive officer officer Johnny Chou said the move was to address the need of growing number of Chinese companies deploying resources and investing in manufacturing facilities in Southeast Asia to support the Belt and Road Initiative (BRI).
“They (companies in China) have asked us to provide a more customized services to ensure the operations of their supply chains in the region,” he said today (Dec 29).
Chou said as they charted their map in the Asean region, the company will offer more services encompassing small packages, express delivery and warehousing between China and markets in Southeast Asia, catering to the outbound needs of domestic manufacturing and cross-border e-commerce businesses.
Fuelled by growing trade volume between China and the Association of Southeast Asian Nations (Asean), the New York-listed Chinese company has already built service networks and overseas warehouses in several Southeast Asian countries.
After entering its first market in Southeast Asia, Thailand, five years ago, BEST expanded its cross-border business by establishing new international routes between China and Southeast Asian countries.
In the first half of 2023, it connected China with the Philippines and Indonesia with its services.
Unlike other logistics service providers, he said that the company based in Hangzhou of the Zhejiang province, China, did not penetrate the market by first establishing transport routes.
“Instead, we invested in building self-owned express networks and distribution centers in core logistics hub cities in Thailand, Vietnam, Malaysia and Singapore.
“Equipped with automated facilities, the distribution centers are able to ensure reliability, scalability and potential for reduced marginal costs of our service networks in Southeast Asia,” Chou said.
Chou added as cross-border e-commerce plays a prominent role in trade between China and Asean, BRI “has turned regional connectivity into a reality”.
According to data from People’s Republic of China’s Minister of Commerce, China and other participating countries have engaged in foreign trade valued at USD19.1 trillion since the inception of the BRI, with two-way investments surpassing USD380 billion.
Meanwhile, BEST Inc Malaysia general manager Lu Miao emphasized the company’s commitment to excellence, saying, “the newly inaugurated sorting center symbolizes BEST Inc’s unwavering commitment to a relentless pursuit of excellence, pushing the boundaries of logistics technology and infrastructure.”
Lu Miao believed this hub will play a pivotal role in optimizing efficiency, speed, and reliability in the movement of parcels and goods, supporting businesses and communities across South East Asia.
BEST Inc’s gross profit touched 51.8 million yuan (RM33.62 million) in the third quarter of this year.
The revenue generated by its international arm BEST Global grew by 30.2 percent year-on-year (YoY), according to its financial report.
As at end of September, the Chinese company had 33 self-operated express sorting centers, over 1,200 service points and business operations spanning six countries in Southeast Asia, with 47,000 sq m of warehousing area.
