New players boost competition in CEP market
Competition in the region’s courier, express and parcel (CEP) market is set to grow following the entry of a new player, Economic Zones Post (EZ Post) Fzco.
Industry sources believe the development will help transform the sector and boost its performance, with growth expected to reach 30 per cent.
EZ Post FZE, a subsidiary of Economic Zones World (EZW), has signed a joint-venture agreement with PostaPlus, the first licensed private postal operator in the Middle East, to form EZ Post Fzco in a step aimed at consolidating its mailroom operations.
EZ Post FZE and PostaPlus own 51 per cent and 49 per cent of EZ Post FZCO’s shares respectively.
The company, operating from the Jebel Ali Free Zone, will provide comprehensive services such as mail, courier, mailroom operations, sorting and storage, document scanning and verification and business centre solutions to EZW Group companies and their clients.
“The CEP market reflects the regional industrial state and the growth therein,” said Michael Ross, Managing Director of Global Logistics of Dubai. “CEP is a market with high potential and its growth is directly related to the region’s gross domestic product. EZ Post will help create competitiveness in the sector, which will lead to fast growth.”
He said the rising level of regional trade coupled with continuing industrialisation meant CEP services were of increasing importance to the majority of industries.
“New players can increase quality awareness among consumers and compel companies to maintain quality standards across their international operations.”
Salma Hareb, CEO of EZW, said the new business was focused on delivering high-quality services.
“EZ Post is a strategic initiative designed to streamline our mail and postal services to achieve greater efficiency, better quality and lower cost,” he said. “At present more than 25,000 mail service transactions are carried out by Jafza per month, creating a need for a consolidated structure.”
“We have partnered with PostaPlus, who will serve as manager and partner for EZ Post to help us achieve the best possible results.”
EZ Post Fzco will be responsible for all courier and postal requirements of EZW, its subsidiaries and their clients. Services include the seamless tracking of transactions from pick-up to delivery, faster processing of transactions achieved through the verification of documents prior to pick-up, and round-the-clock assistance to clients via a toll-free and IT helpdesk.
Nabil bin Salama, Chairman of PostaPlus, said the roadmap chalked out for EZ Post was designed to provide faster, more flexible and reliable services.
