AusPost buys Dubai logistics stake

Australia Post has moved to ramp up its eCommerce muscle with a stake in logistics firm Aramex.

Australia Post boss Ahmed Fahour has talked up the opportunities from eCommerce.

Australia Post has spent around $100 million buying a 4.5 per cent stake in Dubai-based logistics firm Aramex amid a changing of the guards at the company.

Founder Fadi Ghandour has recently sold his 16 per cent stake in the company to Dubai based property magnate Mohamed Alabbar.

Alabbar, who is reportedly close to the Dubai Government, chairs Emaar Properties. And among other sites, Emaar controls the Dubai Mall, which accounts for some 50 per cent of the emirate’s luxury goods shopping.

Ghandour has said he sold his stake in the company because he wants to focus on other eCommerce opportunities.

In June, Australia Post announced an eCommerce strategic alliance with Aramex which ranks as the four biggest eCommerce logistics firm in the world behind the global majors, DHL, UP and FedEx.

Aramex will acquire a 49 per cent stake in Star Track International as part of the deal and Australia Post now has a 4.5 per cent stake in the company.

Australia Post boss Ahmed Fahour has talked up the opportunities from eCommerce, which ranks as a $30 billion business in Australia but a $2 trillion business globally.

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 to 15 per cent of all shopping done online compared to the UK and US where the percentage is closer to 8 per cent.

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 per cent.

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.