DHL Express named Empost’s international logistics provider
DHL Express has signed up to a strategic partnership to work with Empost, the express delivery division of Emirates Post Group.
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Emirates Post launches new services for corporate customers
Emirates Post Group Holding (EPGH) has launched new improved PO Box rental and EziMail bundle services for corporate customers, with enhanced mail pick-up and delivery services as well as value added services.
Read MoreEmpost Cargo and Logistics expects 20 pct growth this year
On February 2007 Empost – UAE’s national courier company – diversified to create a subsidiary division for cargo and logistics in order to offer integrated transport and logistics services covering more than 200 destinations.
The new entity, Empost Cargo and Logistics, has specialised infrastructure and operates out of dedicated locations, with its hub at one of the most important locations for the logistics sector – the Dubai Airport Free Zone (Dafza) Dubai Airport Free Zone (Dafza).
Sultan Al Midfa, CEO of Empost, spoke to Emirates Business about the performance of the company’s logistics division.
How has the performance of Empost Cargo and Logistics been since its establishment last year? Have you managed to meet your expectations?
Yes, we have met all expectations – our own and those of the market. Initially, we were known as a courier company. Since we established the cargo division, we have emerged as the leading express courier, cargo and logistics company in the UAE and the region. We have become a ‘one-stop shop’ in the local market.
What services did you start with, and which ones have you added so far?
To cater to the booming logistics and supply chain industry in the Middle East, Empost launched its cargo and logistics services in 2007. We started with freight forwarding (air and sea), land transportation, warehousing and packing services. Then we added wooden packing services to our list, providing value-added services to our clients.
We plan to open new offices at the Logistics City, and in Jebel Ali and Sharjah, as well as other countries.
Our total investment last year was 24 per cent of our capital and for this year, investment expectation is 12 per cent of our capital.
According to your 2007 financial report, Empost Cargo and Logistics achieved a 31-per cent growth over 2006. What are the reasons for this? Did you expect it?
We have achieved more than we expected. The cargo and logistics sector in the UAE is booming, because of various development projects that have attracted numerous local as well as foreign investors.
What kind of business model are you following? Is it any different from that of the other 3PL companies in the region?
We have our own growth strategy, which is constantly reviewed and enhanced to help us tap further opportunities. We have a simple, straightforward strategy to help us maintain our position as the market leader and offer quality service at a reasonable price.
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How big is your footprint in the region and globally? How do you see this increasing in the next two years?
Empost has been in the market for more than 10 years, and we have excellent alliances with well-known regional and global companies that are known for quality service.
Over the next two years there will be a lot of new projects implemented to help us serve various communities, especially, the UAE, India, Philippines and Indonesia.
Empost has tied up with major government institutions, banks and corporations. Currently we are working on plans of extending our services into new destinations and assessing new products and services that are targeted at niche markets.
How do you leverage the services and facilities of your parent company, Emirates Post , to effectively run the business?
Emirate Post has a well-established network of its own, and because we come under the same group, we are able to tap into some of the resources of Emirates Post to help us deliver high quality service to our customers. As a one-stop shop, we offer our customers a variety of services, which include cargo, courier or any other service.
How much growth is Empost Cargo and Logistics expecting this year and in the coming year, in terms of revenue and operation size?
We are expecting about 20 per cent growth this year. However, the division will continue to greatly contribute in the overall performance of Empost. Currently, the cargo and logistics division contributes about 30 per cen
Read MoreEmirates Post plans aggressive expansion ahead of share offer
Enjoying strong profit and growing by 20 per cent annually, Emirates Post has turned its focus on expansion plans abroad.
Abdulla Ibrahim Al Daboos, Vice-Chairman and President of Emirates Post Holding Group and Chairman of Emirates Post, sat down with Emirates Business to discuss the group’s diverse business interests and its plans for the future, including acquiring a fleet of aircraft and starting joint ventures with remittance firms overseas.
Looking beyond traditional domestic mail processing, Al Daboos is working to turn Emirates Post into a successful international brand.
How was Emirates Post’s performance last year and what are your expectations for 2008?
No doubt we have made a lot of progress since 2001 when Emirates Post was established as a commercial entity under the UAE Government. The services we have provided so far have been very helpful to the community. Emirates Post made Dh190 million net profit for the year 2007, and we expect a 20 per cent growth from our national operations. If we acquire international operations, we can expect another 20 per cent growth.
What measures has Emirates Post been taking to prepare to move outside the UAE?
We had to think of expansion to our operations and services beyond the UAE borders. We divided our strategy into three categories: financial, express and logistic services. We have already developed these, but more on the national level, and we can use this as our foundation to go regionally and internationally.
We are re-engineering a lot of the processes currently taking place in the government, semi-government and private sectors by evaluating how they conduct their businesses and interact with their customers and mail management. But we need to work on many issues such as proper management, proper IT infrastructure and liquidity so we can succeed internationally.
Can you elaborate on your international expansion strategy?
We do a lot of money remittance. There are a lot of people who transfer money to countries such as India, Pakistan, Indonesia, the Philippines, Egypt, Jordan and Lebanon. In the past, we used to have a relationship or an agreement with a company or agent in those countries.
We now intend to acquire a stake in such companies abroad to expand our services. This will apply to cargo and courier services. Instead of being just the sending part, we would like to have a share in the receiving part as well.
We expect this to give us better control over the services and a better share of the revenues on the other side of the business. Meanwhile, we are keeping in mind the continuous improvement of quality. If we are involved in the know how, then we will be sure the service level here and abroad is the same.
The more we expand internationally, the more we control and improve quality in these countries. Also it will mean we will bring the business here as individuals and corporates have more confidence in us. It is a new way of looking at it. This is how we can replicate the success of many of the services we provide here in certain countries where we can operate.
Have you already started acquiring stakes in companies abroad?
Yes, we have already have done this. We have begun due diligence in India, Pakistan and Indonesia – talking to a company that exists there and buying a share in that company. We are working now on Sudan, Jordan and Syria.
As Emirates Post Group, we have a lot of services and several companies beneath us such as: Electronic Data Centre (EDC), which is a document data centre that does printing, mail fulfilment and credit card issuance; Wall Street Exchange; and Emirates Marketing and Promotion.
We are trying to expand wherever we go to improve services that are related to what we do. Look what we have been doing nationally. This is encouraging us to set up joint ventures to expand internationally.
What are the challenges you foresee to your international expansion pl
Read MoreUAE, China look at postal tie-up
A high-level delegation from China Post Group, led by Zhang Yafei, President of the Group, explored the potential for stronger business ties with Emirates Post, at the end of an official visit.
The Chinese officials held talks with Ebrahim Karam, CEO of Emirates Post, Salem Al Shaye’e, Assistant Director General, Operations, Emirates Post and Saif Ali Al Shehhi, Director of Operations, Emirates Post.
The two sides agreed to pursue new business partnerships and agreed there was potential for stronger cooperation.
Karam briefed the visitors on the establishment of the Emirates Holding Group and outlined the responsibilities of subsidiaries.
Al Shehhi referred to the existing cordial relations between China and the UAE.
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