(Yicai Global) Nov. 23 -- China Railway Corp. and JD.com Inc. [NASDAQ:JD] may work together to develop express delivery via high-speed rail and other modern logistics businesses by leveraging China's high-speed rail networks, and the latter may exploit its advantages in e-commerce, networks and financial services to innovate high-speed rail service models, China Railway General Manager Lu Dongfu told JD.com Chairman and Chief Executive Liu Qiangdong in a meeting on deepening cooperation.
China has built and operated the world's most modern rail networks and most developed high-speed rail networks, producing huge social and economic benefits, Lu said. China Railway is strengthening mutually beneficial collaborations with other industries and firms in a bid to add more value to its resources, assets and capital. Companies within the railway system are already cooperating with JD.com.
In their next step, the two sides may work more closely in material procurement to help state-owned railway companies improve material purchase and delivery efficiency, cut inventories and reduce capital costs. The pair will work together in new fields such as online ticket purchases, passenger credit and High-Speed Train+Car-Sharing to create a more convenient environment for travelers. The pair will capitalize on the China-Europe Express Train program and develop the international logistics market to bring Chinese products and brands to the world and better construct the Belt and Road, Lu said.
Liu approved of China Railway's idea to integrate the country's high-speed rail networks with the internet. JD.com is ready to work more closely with the railway department based on their existing partnership; utilize its technical advantages in e-commerce, logistics, warehousing and big data analysis to help develop the country's rail and high-speed rail networks; and explore the establishment of an express delivery network that capitalizes on railways to help improve logistics services' quality and efficiency, Liu said.
Liu hopes that the two groups will coordinate more closely in fields such as high-speed rail express delivery, international logistics and e-payment; explore more cooperation opportunities in big data, cloud computing and robot services; and create businesses to provide travelers with conveniences and reduce logistics costs.