Changes continue at busy Australia Post

Purchase and divestment bracket bumper festive season

Changes continue at busy Australia Post
Parcels are booming for Australia Post


The Christmas/New Year period has seen movement in Australia Post’s structure either side of a bumper festive season.

The government-owned company says it topped the 40 million parcels mark during December, making it the biggest ever month for parcel volumes for the organisation.

And after announcing its snapping up of Aramex Global Solutions (AGS) just before the festive season got underway in earnest, it had withdrawn from a more minor joint venture.

Read about the announced takeover of logistics firm Aramex, here


The growing popularity of online shopping and online sales events, as well as strong Christmas Eve and Boxing Day sales, contributed to an 11.7 percent increase from the previous December.

Australia Post  COO  Bob Black saysit was "all hands on deck" over the Christmas period with more than 3,000 extra staff employed across the network to handle the huge volumes.

"We made more than 40 million parcel deliveries in December, and our hardworking posties delivered more than 40 per cent of these, as well as more than 210 million letters," Black says.

"Our busiest day was Monday 17 December, when we delivered a record three million parcels across the country – by far the biggest day in our history.

"What we didn’t expect was to have a lot of shoppers race to the finish line to post their festive parcels, with our people delivering a whopping 2.7 million items on Christmas Eve – our next busiest day of the month and equal second busiest day in history."

Australia Post revealed last year that online purchases had grown by almost 20 per cent in 12 months.

"Our research found that people were buying up to 19.2 per cent more items online. By 2020, we expect one in 10 items will be bought online," Black says.

"Online shopping is building momentum as a channel of choice, where customers can make the most of online deals and choose customisable delivery options with Australia Post. This means online shoppers can buy the brands they love no matter where they live."

Meanwhile, Australia Post has signed an agreement to divest its 75 per cent shareholding in the MailPlus business to MailPlusHolding Co Pty Ltd, owned and operated by MailPlus founder and CEO Chris Burgess.  

The Burgess Family Trust currently holds the remaining 25 per cent shareholding in the national franchised network business.

The move comes about three years after it picked up the majority share with an eye to small-business in the firm that provides mail collection, mail lodgement, parcel collection and banking services for businesses.

"Australia Post made the decision to divest its shareholding in the MailPlus business, a franchise-based pick-up and delivery service for small and medium sized businesses, after assessing the business as no longer core to Australia Post’s strategic objectives," it says.

The sale is expected to be completed by January 31 with the change of ownership taking effect from that date. 

"The divestment is not expected to have a material impact on Australia Post’s financial statements for the financial year ending 30 June 2019," it adds.


You can also follow our updates by joining our LinkedIn group or liking us on Facebook