Deutsche Post DHL Group makes 10-year deal with S.F. Holding

Deutsche Post DHL Group has entered a 10-year strategic partnership with S.F. Holding, one of China’s leading logistics providers.

The German company’s supply chain business in China is will be incorporated into S.F. Holding and operated as a co-branded service, allowing Deutsche Post to make use of domestic infrastructure.

Deutsche Post DHL Group will receive RMB 5.5 billion, or approximately €700 million, in the deal, with additional revenue-based fees to be paid over the course of the partnership.

In return, S.F. Holding will be granted access to Deutsche Post DHL Group’s supply chain services, management expertise and logistics technology.

Credit: Deutsche Post DHL Group

“This has no bearing on Deutsche Post DHL Group’s business activities in international express, freight transport and e-commerce logistics solutions in China,” the company said in a press release.

“The joint capabilities of Deutsche Post DHL Group and S.F. Holding will create a unique platform to meet the need for a high quality end-to-end supply chain provider in China,” said Frank Appel, CEO of Deutsche Post DHL Group.

“S.F. Holding’s local market expertise in China has real advantages for our customers across all industries including technology, healthcare, retail, automotive, and e-commerce. Combined with our global operations standards and network support, the agreement provides a solid foundation to continue exploring further opportunities in China in the coming years.”

Deutsche Post DHL Group has already invested heavily in China, as one of the architects of the New Silk Road. Earlier this year it launched a new Chengdu-Vienna rail route with Rail Cargo Group.

Source: Deutsche Post DHL Group