Australia Post and Aramex Enter Into an Asian-based Joint Venture

Australia Post and global parcel express delivery and logistics company Aramex today announced they had agreed to form a strategic ecommerce alliance that will open emerging world markets to Australian businesses and online shoppers.

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.

The arrangement will 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, utilising its extensive network of drivers and posties.

Australia Post’s StarTrack Courier business intends to extend its capability by acquiring Mail Call from Aramex.

The alliance with Aramex complements Australia Post’s existing range of global partnerships, including a joint venture with China Post, Sai Cheng Logistics International.

The alliance will 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% annually, against slowing domestic parcel growth, and that international competitors are entering the Australian market.

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, its customers, its employees and local Post Offices around Australia.

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.

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