Under the agreement signed on the sidelines of the ongoing China-CEEC summit, the new company, Chinese-European Supply Chain Zrt., will have EUR 3 million in equity capital. The first shipments will arrive in Hungary in the first quarter of next year, online portal index.hu reports.
Magyar Posta will own a share of 35%, while the Chinese partners – ZTO Express and Ningbo Talents IT Co. Ltd. – will have shares of 35% and 30%, respectively.
The new joint venture will set up a European logistics base aimed at processing shipments sent from China to Hungarian clients and other European destinations. It is estimated that the delivery will be much faster than the 40-60 business days currently required.
The volume of mail arriving from China is 36% of total mail received from abroad in Hungary. In the new company, ZTO will provide the transport infrastructure, and Ningbo Talents the technology for tracking and other software.
The cooperation through the new joint venture may not only bring Magyar Posta a significant increase in revenues, but may also provide an opportunity for the Hungarian company to grow into a leading player on the goods shipment market in East-Central Europe, Magyar Posta Chairman-CEO Zoltán Illés was cited as saying by state news agency MTI.
Magyar Posta holds a market-leading 34% share in the domestic CEP (courier-express-parcel) market, MTI added.
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