Singapore-based aviation services company SATS has signed a a Memorandum of Understanding (MoU) with Chinese express delivery and logistics service provider SF Group to grow the existing e-commerce service collaboration between the companies.
SATS and SF Group will combine their respective areas of expertise and service offerings as well as those of their affiliate companies, including SATS' ground handler subsidiary, Worldwide Flight Services (WFS), and SF Airlines, the Chinese cargo airline owned by SF Group.
In March, Saudia Cargo, WFS and Cainiao Group launched a strategic collaboration at Liege Airport to optimise e-commerce logistics processes with the ultimate goal of creating a business model for future e-commerce logistics gateways at global airports.
Now, the partners will initially look at expanding the collaboration of existing hub operations in Singapore and e-commerce handling at Liege to other global hubs. These include the hub operations in Kuala Lumpur, Malaysia, and exploring Proof of Concepts (PoCs) for e-commerce handling in Beijing and at New York’s JFK International Airport.
The partners also plan to 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, which is currently the world’s fourth-largest integrated logistic provider and is based in China.
The partnership agreement between the market leaders was formally signed at SF Group’s headquarters in Shenzhen by Zhang Ji, vice president of SF Group and Bob Chi, chief executive of gateway services Asia-Pacific at SATS.
Chi will also jointly lead the Steering Committee overseeing regional or country-level working groups conducting the strategic projects under this agreement.
“We are honoured that SF Group has chosen to partner with SATS to identify new network expansion opportunities and service improvements globally,” said Chi. “Our organisations can learn a lot from each other as we embrace our collaboration and go beyond the traditional customer-vendor relationship.
"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."
Ji said: “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.
Growth opportunities for the SATS and SF Group collaboration will be enhanced by the continued expansion of the global eCommerce market forecast to grow by 8.8% in 2024 to USD 6.3 trillion, and to USD 7.9 trillion by 2027.
