DPD hikes delivery biz in nation's southwest

France-based delivery company DPD is expanding its business in China as it deepens cooperation with its Chinese partners.

Jean-Claude Sonet, executive vice-president of DPD, said the company has been actively expanding markets outside of Europe in recent years. On Monday, DPD signed a cooperation agreement with the Qingbaijiang district government in Chengdu, capital of Southwest China's Sichuan province, and Sichuan SRL Supply Chain Management Co Ltd, to jointly build a global cross-border e-commerce freight distribution project at Chengdu International Railway Port.

According to the agreement, the three parties will join efforts to build a Chengdu-based cross-border e-commerce distribution center service network that serves the whole country and the world. They will also encourage high-quality global cross-border trade enterprises to invest in Chengdu.

The cooperation between DPD and the Qingbaijiang district government officially began last April, when DPD's first customized freight train began operations at Chengdu International Railway Port and headed for Malaszewicze, Poland. Then in August, the company established its only railway logistics consolidation center in China in the district.

During his visit to Chengdu for the signing ceremony, Sonet said he was impressed by the advanced facilities at Chengdu International Railway Port and the transportation service capabilities of the China-Europe Railway Express (Chengdu).

The customized freight trains have provided a stable and efficient logistics channel for cross-border e-commerce customers over the past year, and he looks forward to deeper and long-term cooperation, he said.

Ma Zhipeng, general manager of DPD China's strategy center, said the company shipped 1,130 containers via the China-Europe Railway Express (Chengdu) in 2023, achieving a total import and export trade value of 890 million yuan ($123 million).

Ma expects the figure to double this year as the company is scheduled to increase the frequency of its customized freight trains from two to four per month, starting from April.

DPD has the largest parcel delivery network in Europe, and the cargo shipped to Malaszewicze via freight trains can be quickly distributed and delivered to customers in all European countries, Ma said.

"Compared with air transportation, shipping goods by a freight train would take longer in delivery time, but its advantage in much lower transportation costs is obvious to customers who seek cost-effectiveness," he added.

Pu Xuanyi, deputy director of the marketing department at Chengdu International Railway Service Co Ltd — operator of the China-Europe Railway Express (Chengdu) — said her company has been improving logistics efficiency to serve international clients.

"The transit time of the round-trip express trains between Chengdu and Lodz, Poland, has been shortened and stabilized at 12 days," she said.

The latest statistics from the Chengdu International Railway Port Administrative Committee show that international express trains departing from Chengdu have extended their reach to 30 cities in China and 108 foreign destinations.