Deppon Logistics announces big upgrades

Deppon Logistics Co Ltd, one of China's largest logistics companies, announced on Monday it would invest a total of 3.5 billion yuan ($524 million) per year in large parcel delivery over the next three years.

The move makes no secret of the company's desire to gain a lead in China's large parcel express sector, which has experienced rapid growth in recent years on the back of the country's e-commerce boom.

"It is not uncommon that deliverymen are unwilling to deliver large packages, and a lot of companies aren't able to do that," said Han Yongyan, rotating CEO of Deppon. "On the other hand, large parcel delivery is not an easy thing."

"Through building a complete system, we hope to eliminate these 'discriminations' on large parcel express," he noted.

To better tap into the sector, the company launched its new product — 3-60 kilogram large parcel express — which offers several services, including free delivery of parcels with a maximum size of 40 kg.

The Shanghai-based company also announced it would change its name from Deppon Logistics to Deppon Express.

Recent data shows a total of 40 billion parcels were delivered in China last year, generating 495.7 billion yuan in revenue — a 23.77 percent increase year-on-year.

"The country's express industry has developed at a very high speed and is still on the high-speed road," said Gao Hongfeng, head of the China Express Association.

By 2020, China expects to become the world's largest express delivery market, with a business revenue of 800 billion yuan.

Driven by huge demand, Deppon said it will also optimize its system through advanced technologies, including artificial intelligence and big data, to offer a more efficient delivery experience.

Its fiscal report showed it generated revenue of over 20.3 billion yuan last year, an increase of nearly 20 percent year-on-year.