PETALING JAYA: Integrated logistics provider Teleport Commerce Malaysia Sdn Bhd (Teleport) aims to deliver two million parcels daily by 2025 from last year’s deliveries of 130,000 parcels per day, with the aim of matching other global delivery players.

In South-East Asia, the volume of cross-border eCommerce shipments by air is expected to grow between 20% and 25% by 2027, while the eCommerce sector itself is expected to grow to US$3.8bil in freight value in 2025.

Teleport chief executive officer Pete Chareonwongsak said that the market is ready and Teleport aims to change the game of how cross-border logistics is delivered in Malaysia.

“Delivering fast, affordable and reliable service is hard, but we believe our approach can make this a reality for all,” he told the media during a briefing.

Chareonwongsak said that Teleport will be counting on three components in its efforts to achieve the goal – leveraging a multi-hub hybrid, mid-mile belly network of freighters and passenger aircraft belly space from over 30 airline partners combined.

Teleport will also be collaborating with more airline partners around South-East Asia to increase its current air network and capacity.

He said the group is looking towards the possibility of adding an additional seven more freighter aircraft from what they currently have.

“We are also operating in Thailand, the Philippines and Vietnam, so we are looking for the right homes for those seven additional freighters in those countries. It may not be specifically Airbus A321 freighters as we have now in Kuala Lumpur,” he said.

As of today, Teleport is utilising the belly space in 207 of AirAsia’s aircraft, three of its own freighters, as well as 31 partner airlines.

“To achieve the two million parcels a day, we need about 10 freighters in total, AirAsia’s network as well as 30 third-party airlines, so it’s that entire network that will allow us to achieve that,” he said.

By building the interconnected network, Chareonwongsak said Teleport will be able to deliver, even when AirAsia does not fly.

Teleport also aims to provide a seamless digital first-to-last mile delivery service with affordable pricing and growing network access.

“Our next five years will deliver this and help all businesses with simpler and better service, but also our airline partners will never have to fly empty.

“We succeed when we ensure everyone wins with Teleport. Market growth is unlimited when we do,” he added.

He said that demand from China alone is enough for Teleport to achieve its two-million-parcels a day goal in South-East Asia, as about two million parcels are being delivered from China.

“A key focus market for us is China, because we realise that’s where the source is and we want that to flow through Teleport first,” he added.

Touching on the subject of Capital A Bhd’s divestment exercise, Chareonwongsak said it would not have an impact on Teleport in the short-term.

“It’s because we are built as an ecosystem and we don’t have to be an airline,” he stated.

Instead he said it will add more scrutiny on Teleport to figure out how they will grow to hit its targets and deliver on time.

Chareonwongsak stated that the group is looking towards an initial public offering once its target of two million parcels a day has been achieved.