New Zealand Post sale talk arouses Freightways’ interest

New Zealand Post’s revelation that it is considering selling a half-share in its courier business to German-owned DHL has prompted the interest of the country’s other big courier operator.

“If the Government is going to start selling parts of NZ Post, we’re interested in having a look,” Freightways managing director Dean Bracewell told the Business Herald.

POST: Plan to share courier brands with DHL counters Govt line

His statement was made with the knowledge that the Government has said it does not intend to sell state-owned enterprises like NZ Post.

But NZ Post’s announcement last week that it is in talks with DHL, after an approach late last year, has put the spotlight on the domestic courier market _ and raised questions about how the Government will react to the idea.

NZ Post operates the Courier Post, SkyRoad, Pace and Contract Logistics brands. It already has a close relationship with DHL for global services.

Freightways is NZ Post’s main express package competitor, and together the two swallow the lion’s share of the market.

NZ Post chief executive John Allen said that more alignments were emerging in the global freight and logistics market.

“We need to be part of that to ensure the future growth and success of our courier business,” Allen said.

Asked if NZ Post could succeed in that area without changing its present setup, Allen said there were a number of ways that the connectivity could be achieved.

“But when we have an opportunity to explore this option [DHL], we think it is worth exploration, and that’s what we’re doing at the moment.”

The proposition would involve putting NZ Post’s courier brands into a separate business, to be part owned by NZ Post and DHL.

Courier business makes up a sizeable chunk of NZ Post’s revenue, which totals almost NZD 1 billion a year. Its accounts fail to break out the exact figure, but observers estimate over NZD 200 million.