Australia Post forms ties with China firm
Australia Post has ruled out a joint venture in a new freight business with Qantas while flagging further investment in its logistics arm.
Australia Post is keen to expand its domestic and international logistics operations and sees China as a potential partner for further growth.
The Australian business has a partnership with China Post called Sai Cheng Logistics which it hopes will be the conduit to its long- term aim of becoming a more significant player in Asia-Pacific logistics.
Australia Post already has alliances in Hong Kong, Japan, Korea, the United States and Britain.
In support of its growth strategy, Australia Post has indicated that with US$91.6 million available for investment it will concentrate on improving warehousing and electrical systems in support of logistics operations.
Australia’s Post, whose shareholder is the federal government, has just released impressive financial figures. The parcels and logistics division – the entity’s biggest money-spinner – contributed a pre-tax profit of $234.6 million to the Post’s overall 2006-07 pre-tax profit of A$514.96 million.
Chairman David Mortimer said the acquisition of JR Haulage – now renamed Post Logistics Australia – has given the group a good launching pad in traditional logistics. “We know our business platform is sound – and this year’s strong results confirm that we’re pursuing the right strategy,” Mortimer said. “So we’ll be investing our remaining profits in programmes that will help to broaden our revenue base, control our costs and maintain our high service standards.”
Australia Post’s managing director Graeme John said: “Our growth in parcels and logistics is partly driven by online trading but it’s also due to an increasing recognition among Australian businesses that we offer an efficient and comprehensive range of distribution services.”
