Turkey's flag carrier Turkish Airlines, Chinese cargo giant ZTO Express and Hong Kong-based PAL Air on Monday agreed to establish a global logistics company in Hong Kong.
"The services of the new global express joint venture company will include all door to door logistics activities; trucking, collection and distribution, freight transportation, cross docking and final mile delivery," according to a statement from Turkish Airlines.
Speaking at the signing ceremony, Ilker Ayci, the airline's chairman, said the new Global Express/ Courier company will generate $2 billion of revenue in 5 years.
"The joint venture, after reaching quickly to fully functional and operational levels, is expected to take place within the world’s largest integrators," Ayci said.
He also noted that Turkish Cargo, a division of the national flag-carrier, will have up to 4 million tons of cargo handling capacity once third airport in Istanbul on October 29.
"The flow of e-commerce products globally with this joint venture and via Istanbul mega hub; will provide maximum value to our customers worldwide," Ayci said.
Mei Song Lai, the chairman of ZTO Express, said China's logistics industry is provided with "tremendous" new growth opportunities due to the innovation and globalization of new retail and e-commerce sector.
"The cooperation will form synergy by combining strong core competencies and integrating key resources, and will undoubtedly effect positive progress in the areas of global express delivery, warehousing, cargo freight, and aviation route development and more, and will ultimately benefit traders and consumers globally,” Mei said.
The global giant Alibaba Group announced that it will acquire 10 percent of the ZTO Express's stakes for $1.38 billion, the deal expected to close within this month, according to the statement.
"ZTO is the world’s largest parcel distributer with daily 28 million parcels and additionally having the widest express delivery coverage in whole China," the statement read.
Pal Air's Vice Chairman Vivian Lau said the company was honored to have played a role in creating a three parties venture.
PAL Air has a wide network including express postal services in Hong Kong, China, Thailand, Vietnam, India and the U.S. (AA)