Alibaba Group acquires stake in Chinese logistics company

News this week: New York-listed Alibaba Group announced the acquisition of a minority stake in the Shanghai YTO Express (Logistics) Company. Financial details were not disclosed. Both companies plan to cooperate in developing logistics solutions to improve efficiency of China’s logistics industry.

YTO Express will work closely with Alibaba’s logistics subsidiary Cainiao to enhance the industry’s logistics management capabilities as well as international and rural delivery services. Cainiao was founded by Alibaba in 2013 in partnership with a consortium of logistics companies with the aim of building a nationwide logistics platform.

Judy Tong, senior vice president of Alibaba Group and president of Cainiao, said, “The strategic investment in YTO Express reflects our commitment to improving quality and service standards in China’s logistics industry. As a platform, we look forward to working closer with partners who share our vision to develop more efficient logistic infrastructure and solutions that will drive development of China’s logistics sector in order to fully satisfy our customers’ needs.”

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ITE acquires transport shows from AXIO Data

News this week: Last month, international exhibition organiser, ITE Group plc, acquired the Breakbulk series of exhibitions and related media from AXIO Data for a maximum consideration of US$42 million.

Breakbulk events are held annually in Houston, Antwerp, Shanghai, Johannesburg, Istanbul and Sao Paulo, serving the transport and logistics equipment market for large-scale projects. A print and digital magazine for the global breakbulk community will also be included in the deal. The current management team will remain with the business.

ITE’s CEO, Russell Taylor, said, “ITE is continuing to build businesses in strategically important industry sectors and the acquisition of Breakbulk increases our presence in the global transport and logistics sector. This complementary move represents progress in achieving the Group’s ambitions to expand its operations in markets and geographies with further potential for growth as well as continuing to diversify the geo-political risk in our portfolio.”

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Alibaba to invest in Singapore’s mail carrier

News this week: The leading e-commerce company in China, Alibaba Group, has plans to invest S$312.5 million (US$250 million) in Singapore’s publicly-traded mail carrier, Singapore Post Ltd. (SingPost).

Under the agreement, Alibaba’s subsidiary, Alibaba Investment Ltd. will buy a 10.35% stake in SingPost, including 30 million of the existing ordinary shares and 190 million new ordinary shares. Part of the deal will also see the formation of a joint venture (JV) in international e-commerce logistics.

According to a press release issued by SingPost and Alibaba, the JV will explore “e-commerce opportunities in Southeast Asia and beyond by providing… greater access to SingPost’s international logistics capabilities, infrastructure and delivery networks, as well as end-to-end solutions to Alibaba Group customers and merchants.”

SingPost is Singapore’s designated postal carrier and listed on the Singapore Stock Exchange.

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.

Alibaba invests US$364 million in Haier to boost China logistics

News this week: Alibaba Group and white-goods and electronics manufacturer Haier Group announced this week that the two companies have formed a strategic partnership. They will jointly offer online sales and delivery of household appliances in China.

Under the terms of the deal, Alibaba Group will also invest US$364 million in Haier Electronics. Of that amount, US$240 million will be invested into one of Haier’s logistics-focused subsidiaries. Alibaba will also acquire a 2% stake in Haier Electronics.

Executive Chairman of the Alibaba Group, Jack Ma, commented, “We will create value for our customers and as a result create value for Alibaba Group and Haier Group. The new economy is not the digital economy, but rather one that combines the real economy and digital economy, a true blending of ‘virtual’ and ‘real.’”

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.

Reed Panorama launches new logistics event

News this week: Reed Exhibition’s Indonesian joint venture company, Reed Panorama Exhibitions (RPE), has announced the launch of the inaugural Indonesia Transport Supply Chain and Logistics trade show which is scheduled to be held from 29^th to 31^st October 2014.

The annual transport and logistics show will be hosted at the Jakarta International Expo Kemayoran (JIExpo). RPE expects to attract more than 200 exhibitors from the five key sectors of: transport and logistics services, information systems and technology, logistics infrastructure, logistics real estate, as well as materials handling equipment and services.

Michelle Lim, president director of RPE, said, “We are extremely excited to be working with and bringing together leading players in the logistics market for this event. We hope to grow and develop the industry and participate in bringing to fruition the National Logistics Blueprint [Sislognas] of 2010-2025.”

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.

Alibaba joins consortium to invest in logistics

News this week: China’s largest e-commerce company, Alibaba Group, has announced it will be part of a consortium that will invest up to US$16.3 billion over the next five to eight years to develop the “China Smart Logistics Network” – a plan to build a logistics network capable of delivering goods across the country.

The consortium has established a new company, Cainiao Network Technology Company Limited, to manage the system. Reported major shareholders include the Alibaba Group, Yintai Group, Fosun Group, S.F. Express Co., as well as four major Chinese courier companies: Shentong, Yuantong, Zhong Tong and Yunda. Jack Ma, Alibaba Group’s executive chairman, was named chairman of Cainiao, along with Yintai Group’s CEO, Shen Guojun, as CEO.

Alibaba has previously stated the group aims to build a logistics network over the next decade which could allow the delivery of products within China in less than 24 hours.

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.

Alibaba to invest in China’s logistics infrastructure

News this week: According to Reuters, the Alibaba Group, together with partners, plans to invest US$16 billion in the first phase of its plan to build a sophisticated logistics network in China.

The initiative will be led by Alibaba Group founder, Jack Ma. Over the next decade the group aims to build a logistics network which could allow the delivery of products within China in less than 24 hours. The network will supposedly be able to support online sales of RMB 10 trillion. Other investors include private equity firms, express companies and a bank.

“This is consistent with what we've said in the past that logistics is a key industry bottleneck for e-commerce growth in China and that everyone involved in this sector needs to work together to drive rapid development,” an Alibaba spokeswoman said in an email to Reuters.

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Alibaba’s Taobao Mall to lease two facilities

News this week: Alibaba Group’s B2C subsidiary, Taobao Mall has signed two agreements with Asia-based logistics facilities, Global Logistic Properties Limited (GLP), to lease two of GLP’s facilities in Shanghai and Guangzhou amounting to a total area of 75,000 m². The agreements are part of Taobao Mall’s effort to improve its logistics facility network in China amidst growing domestic consumption.

The leases include a 55,000 m² Shanghai facility located at GLP Park Hongqiao (West), while the Guangzhou facility is a pre-lease contract of 20,000 m² in GLP Park Zhencheng (Xintang) which will be completed and available to Taobao Mall in October this year.

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.