Australia Post and Dubai-based parcel delivery provider Aramex formed a strategic alliance today (June 2) to provide Australian businesses and online shoppers with greater access to emerging e-commerce markets.
Aramex, which grew its annual revenues by 50% over a four-year period to A$1.4bn (US$1bn) in 2015, has a presence in a number of important markets for 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 e-commerce market with a particular focus on Asia. The joint venture will build on the service capabilities of Australia Post’s logistics and freight delivery subsidiary, StarTrack, and Aramex’s global express delivery network. The partnership will also see StarTrack acquire Australian-based courier service Mail Call from Aramex.
The arrangement will help Australia Post grow the Australian e-commerce market, capturing more inbound e-commerce parcel volumes and providing a platform for outbound growth, particularly for Australian small businesses. The partnership is reflective of the 20% annual growth in cross-border parcel volumes in Australia, which is measured against slowing domestic parcel growth and international competitors entering the Australian market.
A statement by Australia Post read, “With letters reform underway, generating new revenues is the next step to ensuring a sustainable future for Australia Post and securing Australian jobs to the benefit of the community, our customers, our employees and local post offices around Australia.”
Bob Chizzoniti, director of the Post Office Agents Association Limited (POAAL), the national representative for small business owners in the Australian postal sector, welcomed the news.
He said, “Many of Australia Post’s competitors in domestic and international parcel delivery have already formed global delivery partnerships. It’s important for Australia Post to have alliances to help defend and grow Australia Post’s position as the leader in Australian parcel delivery.
“Customers expect high standards of delivery when buying online. We hope that this new alliance will continue to improve the quality of service for Australia Post parcel customers.”
June 2, 2016