SCG Logistics, a subsidiary of SCG Cement-Building Materials, plans to expand into Europe through China's railways in 2019 and set up a joint venture firm with the Jusda logistics group to handle European business.
The new firm is expected to list in China in the fourth quarter.
Managing director Paitoon Jiranantarat said SCG Logistics chose Europe because the region has growth opportunities and is on the railway route to transport cement and building products from Thailand to China and on to Europe.
"SCG logistics will team up with Jusda to set up the new company in China, and we are considering a listing on the Guangxi or Shenzhen stock market, which we will announce further details on soon," Mr Paitoon said.
Jusda was founded in Shenzhen in 2002. The partnership with SCG enables access to 400 Chinese cities within Jusda's network.
Jusda owns 60 large warehouses worldwide.
"China's One Belt One Road initiative is a key factor driving the logistics system's move towards Europe," Mr Paitoon said.
He said SCG has a positive outlook in its home country for the much-touted Eastern Economic Corridor (EEC) scheme to drive logistics flows in the three EEC provinces: Chachoengsao, Chon Buri and Rayong.
In a related development, SCG Logistics has joined SCG Express to innovate integrated fulfilment solutions under Fulfilment by SCG Logistics to foster the growth of small and medium-sized enterprises (SMEs) in the digital age.
Fulfilment services include comprehensive shipping, warehousing and packaging solutions for items of all sizes, ranging from small packages such as cosmetic products to electric appliances and furniture, on top of imports from China.
The fulfilment services are expected to account for 15-20% market share, targeting revenue of 20 million baht by 2019 and 1 billion baht within five years.
Mr Paitoon said the fulfilment business market in Thailand is expected to reach 3 billion baht in 2018.
SCG projects growth of 27-30% to 15 billion baht in the next five years, indicating a business opportunity for the group.
Furthermore, the e-commerce market has great potential for future sustainable growth in the digital era, having already ushered in massive increases in the number of online SMEs.
"Thailand's e-commerce market has a total value of 2.8 trillion baht, and SCG forecasts further growth in 2019," Mr Paitoon said, adding that the business-to-business segment will reach 3 trillion baht and the business-to-customer segment will hit 800 billion baht next year.
SCG's logistics services aim to meet customer demand and unleash their full potential in eight industries across Asean.
SCG Logistics reported 2017 revenue of 16 billion baht, a 7% rise, generated by 1.7 million shipments totalling 3.6 million tonnes of goods.