Australia Post to form alliance with Aramex and to buy Mail Call

Australia Post to form alliance with Aramex and to buy Mail Call

Mail Call

Australia Post and global parcel express delivery and logistics company Aramex have agreed to form a strategic eCommerce alliance that is aimed at opening emerging world markets to Australian businesses and online shoppers.

Aramex, which grew its annual revenues by 50% over the last four years to $A1.4 billion last year, is based in the international trading hub of Dubai. It has a strong focus on increasingly important markets to Australia, including South East Asia and India.

Under the terms of the agreement, Australia Post and Aramex will enter into an Asian-based joint venture, targeting the global eCommerce market, with a particular focus on Asia.

The joint venture will build on the service capability of StarTrack International and Aramex’s global express delivery network. Aramex will invest in StarTrack International and contribute marketing and sales capability. Its investment level was not disclosed.

The arrangement is expected to help Australia Post grow the Australian eCommerce market, capturing more inbound eCommerce parcel volumes and providing a platform for outbound growth, particularly for Australian small businesses.

For parcel volumes generated by the joint venture, Australia Post will provide last mile delivery services in Australia.

Australia Post’s StarTrack Courier business will buy Mail Call from Aramex as part of the deal, which Aramex bought in 2014 (read about it here).

Australia Post says the alliance with Aramex complements its existing range of global partnerships, including a joint venture with China Post, Sai Cheng Logistics International.

The alliance is expected to allow Australian businesses and consumers to take advantage of the dramatic growth in cross-border eCommerce and the rising Asian economy.

It reflects that cross-border parcels volumes are growing at 20% per annum, against slowing domestic parcel growth, and that international competitors are entering the Australian market.

 

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