Australia Post Spends $100M For Stake in Aramex Logistics To Capture Country’s Last Mile


Australia Post has spent nearly $100 million to take a 4.5% stake in Dubai-based logistics and transportation company Aramex, reports The Australian.

The Australian postal firm swooped on the stake following the recent exit of Aramex founder Fadi Ghandour from the company. Australia Post’s investment is aimed at establishing a strategic ecommerce alliance with Aramex to open emerging markets to Australian businesses and online shoppers.

The deal gives Australia Post 100% of the last mile delivery of parcels in Australia and a split of revenues from the joint venture from the rest of the world into Australia.

That joint venture will use Australia Posts’ StarTrack International courier business and Aramex’s global express delivery networks.

Under the deal Aramex will acquire a 49% stake in Star Track International and Australia Post will snare a 4.5% stake in the Gulf company. The arrangement will allow Australia Post to grow the Australian ecommerce market, capturing more inbound parcel volumes and providing a platform for outbound growth, particularly for small and emerging businesses.

For parcel volumes generated by the joint venture, Australia Post will provide last-mile delivery services in Australia using its network of drivers.

For Australia Post, the move follows a similar deal completed in Asia with Alibaba and, to expand its service to the high demand Chinese market. Australia Post has also partnered with China Post’s Sai Cheng Logistics International to help deliver parcels to the Australian market, fully investing in a cross-border strategy. This new partnership with Aramex will ‘compliment’ the company’s other partnerships in Asia.

A version of this appeared in The Australian on August 3. Read the full version here.