Singapore – E-commerce logistics companies Singapore Post Limited and Cainiao have recently entered into a strategic agreement with the goal of harnessing Singapore’s long-term growth in the cargo and logistics sectors.
This collaboration, commemorated through the signing of a memorandum of understanding, will also advance both companies’ logistics networks, allowing them to better capture the fast-growing e-commerce market in Southeast Asia.
Leveraging Cainao’s tech solutions and SingPost’s logistics network, the agreement will centre around reducing delivery costs and expanding shipment volumes. It will further facilitate improved shipment consolidation and more efficient delivery route management.
Key areas of the alliance also encompass strengthening the country’s role as an air cargo transhipment hub and creating innovative postal products for China and Southeast Asia. This further includes integrating Cainiao’s technology to improve operational efficiency and enhance last-mile delivery capabilities in Singapore and other regions.
Speaking about the partnership, Li Yu, CEO of International at SingPost, said, “Singapore’s strategic location and world-class infrastructure make it an ideal transhipment hub for the growing eCommerce sector in Asia.”
” This collaboration with Cainiao aligns with our path of digitalisation and our focus on eCommerce logistics. By combining our strengths, we aim to enhance service quality for our customers,” added Yu.
William Xiong, senior vice president at CainiaoGroup, further stated, “Given the rapid growth of e-commerce in the Southeast Asian market, there is a rising need for greater efficiency and faster delivery. We look forward to collaborating with partners like SingPost to contribute to a robust eCommerce logistics ecosystem.”
“By integrating our technology with SingPost’s network, we aim to provide reliable logistics solutions that support global connectivity, facilitate trade between Southeast Asia and the rest of the world, and strengthen Cainiao’s presence in Asia Pacific,” he concluded.
In the coming months, the collaboration will begin with a pilot project, and both parties will work together to examine the practicality of the different workstreams.
