Australia Post is taking full ownership of ecommerce delivery platform Aramex Global Solutions (AGS) to boost its international ecommerce capabilities.
AGS provides end-to-end cross-border logistics solutions to a portfolio of global ecommerce merchants. It was established as a joint venture between the AusPost and Dubai-based logistics company Aramex two years ago.
In late December AusPost announced it had reached in-principle agreement to purchase the 60 per cent of AGS it does not already own for approximately US$20 million.
AGS lets Australian consumers to shop online globally, connecting international retailers directly with Australia Post’s last-mile delivery and customs clearance capabilities.
AGS revenue is expected to be A$138 million in 2018 and Australia Post’s exclusive delivery of parcels for AGS in FY18 generated A$40 million of revenue.
In addition to delivering significant parcel volumes inbound to Australia, AGS has an established presence in key global ecommerce trade lanes, including Asia, the UK, Europe and the US, providing a valuable platform for continued expansion, the company said.
Annette Carey, executive general manager, international services, said the agreement with Aramex reflects changes to the strategic direction of both organisations, as AusPost continues to focus on cross-border ecommerce.
“Combining our postal capabilities with AGS’s bespoke ecommerce capabilities enables Australia Post to engage directly with international retailers, providing unique customer solutions to capture strong growth in cross-border ecommerce markets.”
Australia Post has plans to rename and rebrand AGS to reflect the change in ownership in the near future.