New Express Couriers joint venture in Australia
New Zealand Post announced that it has formed Express Couriers Australia Pty Limited (ECA), a 50:50 joint venture with Deutsche Post World Net (DPWN), for the ownership and operation of express courier businesses in Australia. Effective 1 July 2008, the arrangement builds on the success since 2005 of a similar joint venture in New Zealand between DPWN’s express unit DHL Express, and New Zealand Post.
The New Zealand Post-DHL Express structure in Australia encompasses six complementary businesses in metropolitan and regional markets in Queensland, New South Wales, Victoria, South Australia and Western Australia. The businesses include Couriers Please, Parcel Overnight Direct and Northern Kope Parcel Express, three businesses under New Zealand Post ownership. The other businesses to make up the joint venture are: PEP Transport, VicFast Couriers and Hills Transport.
The new structure is called Express Couriers Australia Pty limited (ECA). It will be governed and managed separately from the shareholders’ other Australian interests. The six businesses will be interconnected to form an express courier network with coverage of more than 80 pct of Australia’s populated area, although within their markets the businesses will continue to operate as stand-alone operations.
New Zealand Post Group Chief Executive John Allen said formation of the ECA network is “a very positive step for both shareholders, for each of the businesses involved, and for their customers”.
Mr Allen said the structure gives New Zealand Post 50 pct ownership of a substantial business group in Australia, alongside DHL the world’s leading express and logistics provider. Total shareholders’ investment in ECA is around NZD 140 million. New Zealand Post and DHL Express have completed a series of transactions between them and with other parties to form ECA.
1 USD = 1.31788 NZD
New Zealand Post announced that it has formed Express Couriers Australia Pty Limited (ECA), a 50:50 joint venture with Deutsche Post World Net (DPWN), for the ownership and operation of express courier businesses in Australia. Effective 1 July 2008, the arrangement builds on the success since 2005 of a similar joint venture in New Zealand between DPWN’s express unit DHL Express, and New Zealand Post.
The New Zealand Post-DHL Express structure in Australia encompasses six complementary businesses in metropolitan and regional markets in Queensland, New South Wales, Victoria, South Australia and Western Australia. The businesses include Couriers Please, Parcel Overnight Direct and Northern Kope Parcel Express, three businesses under New Zealand Post ownership. The other businesses to make up the joint venture are: PEP Transport, VicFast Couriers and Hills Transport.
The new structure is called Express Couriers Australia Pty limited (ECA). It will be governed and managed separately from the shareholders’ other Australian interests. The six businesses will be interconnected to form an express courier network with coverage of more than 80 pct of Australia’s populated area, although within their markets the businesses will continue to operate as stand-alone operations.
New Zealand Post Group Chief Executive John Allen said formation of the ECA network is “a very positive step for both shareholders, for each of the businesses involved, and for their customers”.
Mr Allen said the structure gives New Zealand Post 50 pct ownership of a substantial business group in Australia, alongside DHL the world’s leading express and logistics provider. Total shareholders’ investment in ECA is around A$140 million. New Zealand Post and DHL Express have completed a series of transactions between them and with other parties to form ECA.
Mr Allen said these transactions result in a one-off gain to New Zealand Post of NZD 20 million to NZD 25 million, subject to earnings expectations, which will be included in the 2007-08 financial results.
ECA will be governed by a Board of equal representation from New Zealand Post and DHL Express.
Mr Allen said it is very much “business as usual” for the six businesses within ECA. “They are brands of real strength in their respective territories, with a combined customer base of over 65,000 and total annual revenues above NZD 200 million. With the formation of ECA, the businesses are positioned to support each other’s development over the long term,” he said.
Mr Allen said the ECA concept grew out of the New Zealand Post-DHL Express joint venture in New Zealand, Express Couriers Limited (ECL) and their joint assessment of the growth prospects in Australian markets.
1 USD = 1.31788 NZD
