Air cargo handler and food solutions provider Sats has signed a memorandum of understanding (MOU) with SF Group to expand both parties’ strategic collaboration and supply optimisation globally. SF Group is a leading express delivery and logistics service provider in China.
The agreement was signed at SF Group’s headquarters in Shenzhen by Zhang Ji, vice president of SF Group and Bob Chi, CEO of gateway services Asia Pacific (Apac) at Sats. Chi will also jointly lead the steering committee overseeing regional or country-level working groups conducting the strategic projects under this agreement.
Under the MOU, Sats and SF Group will combine their respective areas of expertise and service offerings and those of their affiliate companies. The partners will look at expanding the successful collaboration of the existing hub operations in Singapore and e-commerce handling in Liege, Belgium to other global hubs including Kuala Lumpur, Malaysia. The partnership will also explore proof of concepts (PoCs) for e-commerce handling in Beijing and at New York’s JFK International Airport.
According to Sats in its July 16 release, the global e-commerce market is expected to grow by 8.8% to US$6.3 trillion ($8.47 trillion) in 2024 and to US$7.9 trillion by 2027.
The partners will also identify and build other network solutions or specialised services from more than 200 locations, where Sats is present, with SF Group’s extensive demand channels.
“We are honoured that SF Group has chosen to partner with SATS to identify new network expansion opportunities and service improvements globally,” says Bob Chi. “Our organisations can learn a lot from each other as we embrace our collaboration and go beyond the traditional customer-vendor relationship.”
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“This is a mutually beneficial partnership where both parties are leveraging on each other’s strengths to improve the supply chain and create value for our respective stakeholders. We are confident of building on the successes that we have today to expand into a multi-station global network collaboration,” he adds.
“As China's largest and the world's fourth largest integrated logistics service provider, SF Group is actively promoting its overseas growth strategy. The collaboration with Sats Group, which is one of the world's largest aviation ground service providers, with continuous growth of its worldwide network in the field of aviation logistics, will enhance the competitiveness of both parties and achieve a win-win situation,” says Zhang.
As at 10.25am, shares in Sats are trading 4 cents lower or 1.2% down at $3.30.
