Empost 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
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