- 10 August 2016
- Transport / Logistics Services
Australian postal operator Australia Post has spent nearly US $100 million buying a 4.5% stake in Dubai based logistics firm Aramex.
Aramex founder Fadi Ghandour has recently sold his 16% stake in Aramex to Dubai based property magnate Mohamed Alabbar.
Alabbar is the Chairman of Emaar Properties, which controls Dubai Mall that accounts for 50% of the Emirate’s luxury goods shopping.
Ghandour says that he sold his stake so he can focus on investing in e-commerce.
Australia Post announced in June that it would form an e-commerce strategic alliance with Aramex that ranks as the fourth biggest e-commerce logistics company in the world, behind the big three of UPS, DHL and FedEx.
As part of the deal, Aramex will buy a 49% stake in Star Track International, while Australia Post will have a 4.5% stake in Aramex.
Ahmed Fahour, CEO of Australia Post, has talked up the opportunities to be had from e-commerce, that is worth $30bn in Australia but as much as $2 trillion globally.
Australia Post also has an alliance with China Post offshoot Sai Cheng to help deliver parcels to the Australian market.
Fahour sees the market as including Australians buying more goods online offshore, small business export opportunities and the growth in the Australian market.
China ranks as one of the big online shopping countries, with 10-15% of all shopping done online compared to the UK and US where the percentage is closer to 8%.
Aramex, which last year recorded $US1.4bn in revenue, has just announced its latest quarterly results, showing profits up by 36 per cent and revenues by 17%.
The link is aimed at establishing Australia Post on the global logistics map. The fast growing parcels business is offsetting losses in the regular mail business.