Australia Post and Aramex take next Asia step

Alliance strengthens while focus remains on Asian markets

Australia Post and Aramex take next Asia step
Australia Post is looking beyond national boundaries


The link between forward looking international logistics operator Aramex and Australia Post has deepened, with the government-owned local postal giant looking to build a global presence through the Dubai-headquartered company.

What had been a joint-venture arrangement to tackle the Asian e-commerce market has morphed into a A$130 million cash injection, with a 4.5 per cent holding and an undisclosed sum of Aramex investment in StarTrack International going the other way.

"Commencing in September, the joint venture will help connect Australian businesses and consumers to the world economy and the fast-growing Asian eCommerce market through a seamless inbound and outbound experience," the Australian operator says.

"Australia Post will provide last mile delivery in Australia, utilising the existing network of drivers and posties to deliver volumes generated by the joint venture."

While seeing European and Japanese postal companies, both government-owned and privatised, construct global operations and grow over the past two decades, Australia Post has not been static.

For example, Australia Post’s offshore arm, AP International, formed a 49-51 joint venture with China Post’s China Post Logistics 11 years ago to form Sai Cheng Logistics International.

In July, that firm signed a strategic letter of intent and service contract with Gome Australia is the second international subsidiary of Chinese appliances firm Gome.

But it appears an accelerated approach is needed and Aramex, which has Australian interests, is a handy vehicle.

In June, it bought that firm’s Mail Call Courier and folded it into StarTrack International.

Aramex CEO Hussein Hachem said at the time that "we look forward to combining our resources and expertise to build a compelling global e-commerce delivery platform".

It is unclear what the strengthening alliance means for Aramex’s courier and express franchise operation Fastway that it bought in January.

Comment from Aramex has been sought.

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