Emirates Post to spend Dh1 billion on expansion drive

Emirates Post, which plans to spend Dh1 billion on an expansion drive within the next 18 months, has set into motion an ambitious programme to acquire 50 aircraft in five years to boost its soon-to-be-launched airfreight activities.

A spokesman of the postal company, quoting Abdullah Ebrahim Al Daboos, director-general, Emirates Post, said yesterday the first two aircraft — Airbus300, each with 44 tonne capacity — will be in operation shortly. As part of the expansion, the company will be adding one aircraft per month. In expanding its freighter division, Emirates Post, which has been pressing ahead with a diversification programme, is believed to follow the DHL, Fedex and UPS models. “The idea is not to rely on private carrier where capacity is usually unavailable because of heavy demand,” he said.

The spokesman, however, did not specify the type of the other aircraft Emirates Post would be adding to its fleet in the coming five years.

Also in the pipeline for UAE’s fast growing national postal company is an IPO proposal, which is awaiting individual sanction from all emirates. “The IPO will be finalised by the end of this month. What is yet to be decided is the IPO’s public-government ratio,” he said. The IPO will be open to all investors, including expatriates.

The spokesman said the air courier service is one of three new companies Emirates Post plans to introduce during 2007, the other two being a trucking company for the GCC and Middle East market and a money management and movement company. The holding group will be known as the Emirates Post Group following sanction of its IPO proposal.

“Emirates Post’s expansion plans have picked up momentum over the past four years, with the launch of subsidiaries such as Electronic Document Centre, Emirates Marketing and Promotions and Wall Street Exchange Centre. From this year, we are entering a new phase that will see Emirates Post entering new areas of freighter services, trucking and money management solutions,” he quoted Al Daboos. Wall Street Exchange — through which Emirates Post is poised to emerge as a major player in the $40 billion remittances market — is expected to enhance international operations in France, Germany, Spain and South East Asia.

“The implementation will be completed at a fast pace. This will accelerate once we formally announce the establishment of the holding company, the Emirates Post Group, very soon,” he added.

Last year, Emirates Post recorded a net profit of Dh161.35 million, an increase of 19 per cent over the previous year, underscoring its increased mail volumes and introduction of new non-postal services at post offices.