GLS links up with China's ZIS Express to handle China-Europe air parcels

BRITAIN's Royal Mail-owned parcel delivery group, General Logistics Systems (GLS), has entered into a joint venture agreement with one of the largest private logistics operators in China, Zip Express, for the delivery of air parcels between the mainland and Europe.

Under the terms of the agreement, ZJS Express, which employs 20,000 at 3,000 locations across the country, will ship parcels destined for the European market by air freight from Beijing to Frankfurt and London where they will be handled by GLS' network.

The joint venture will trade in China as Euro Business Parcel while Parcelforce Worldwide will act as its UK delivery arm. Gateways will also be set up in the industrial centres of Shanghai and Shenzhen, according to Lloyds Loading List.

Commenting on the tie-up with ZJS Express, Mark Thomson, managing director international at Royal Mail Group said: "Last year, China was the biggest exporter of goods to the EU. This presents us with a great opportunity to link our European operations with ZJS Express' network for the benefit of Chinese businesses exporting to Europe."

Euro Business Parcel will provide Chinese exporters with a "value-for-money, express services targeting less time sensitive items with delivery typically between three and five working days from China to Europe."

The agreement also makes provision for GLS to begin shipping parcels to China for nationwide distribution by ZJS Express. Royal Mail underlined that the alliance between GLS and ZJS is part of its overall parcel strategy, "As letter volumes decline, the group is focused on generating profitable revenue streams in parcels and marketing mail."

GLS already has partnership agreements in place with parcel delivery firms in Russia, India, the Middle East and Hong Kong. In the last financial year, GLS posted revenues of EUR1.81 billion (US$2.3 billion). It employs 13,400 staff and handles 375 million parcels each year.