Aramex closes key acquisitions, JV deals

Expands with strategic acquisitions and partnerships in Turkey, Malaysia, Bangladesh and Vietnam

Aramex, the global logistics and transportation solutions provider, last week announced a series of strategic acquisitions and partnerships in Turkey, Malaysia, Bangladesh and Vietnam.

The company has increased its shareholding to 100 per cent in Aramex Turkey, previously a partially owned subsidiary that has performed strongly in the country, achieving continuous annual growth to date.

This acquisition positions Aramex as a fully committed logistics and supply chain provider in Turkey, allowing the company higher levels of flexibility to expand its presence and carry on further investments in the world’s 16th largest economy, which registered average annual real GDP growth of six per cent between 2003 and 2008.

Aramex also announced the acquisition of a majority stake in Avanti, a leading express courier company in Malaysia, providing the company with a platform to enter the country’s expanding logistics and supply chain sector.

This acquisition will pave the way for the introduction of the full suite of Aramex portfolio of products and services in Malaysia, including integrated logistics solutions, international and domestic express delivery, freight forwarding, records and information management solutions, and e-services, such as e-business solutions and Shop&Ship, the company’s online shopping delivery service. In addition, the logistics giant has also bought a majority stake in Expo Express Services, the company’s subsidiary in Bangladesh, reinforcing its operations in this high-growth Asian nation.

With pro-investment government policies, a sustained influx of multinational firms and continued expansion in exports, Bangladesh has witnessed year-on-year GDP growth of between 5-6 per cent since 1996.

In Vietnam, Aramex has formed a joint venture partnership with Masan Services, a wholly owned subsidiary of Masan Corporation, to launch advanced logistics solutions in one of the world’s fastest growing economies.

Masan Corp is the majority shareholder of Masan Group which is one the largest listed private-sector companies in Vietnam. This partnership, will allow Aramex to start introducing its complete range of products and services in Vietnam in 2011.

The move is in line with Aramex’s long-term strategy to strengthen its presence in emerging markets, said its top official.

“Aramex has embarked on a new phase of growth and expansion and this is just the beginning of the company’s investments in key emerging markets,” said Fadi Ghandour, Aramex founder and CEO.

 “Today’s announcement marks the first step towards the fulfillment of our strategy of being the company of choice in these emerging markets. We hope to soon announce further investments in Africa and Asia, and continue to build up on this strategy well into 2012,” he remarked.

Othman Aljeda, chief executive officer, Aramex Asia, described these acquisitions and joint ventures as a culmination of Aramex’s efforts over the past two years towards building a comprehensive network in Asia.

‘They will enable us to offer our comprehensive logistics and transportation services, and facilitate the expansion of our customer base and extend our market presence in Asia,’ he stated.

Aljeda pointed out that the increased presence in Vietnam and Malaysia will strengthen its existing South East Asian network in Singapore and Indonesia, while the acquisition in Bangladesh will complement Aramex’s operations in India and Sri Lanka.

UPS expands security for retail shipping

New York (Reuters): United Parcel Service is requiring photo identification for retail shipping as it expands security during its peak season after two parcel bombs were intercepted in October.

The world’s largest package delivery company, which expects a 7.5 percent rise to about 430 million deliveries this holiday season, said on Tuesday that retail customers will not be permitted to ship without a government-issued picture ID at the UPS Store, Mail Boxes Etc and authorized shipping outlets worldwide.

“Since retail centers experience a significant increase in business from occasional shippers during the busy holidays, this enhancement adds a prudent step in our multi-layered approach to security,” Dale Hayes, UPS vice president of small business and retail marketing, said in a statement.

The Atlanta-based company will added “additional security precautions as necessary,” he said.

The photo ID policy has been used at UPS Customer Centers since 2005.

Under the new policy, retail customers without a pre-printed attached shipping label who do not present a government-issued photo ID cannot use UPS services, the company said.

In October, security officials in Britain and Dubai intercepted two parcel bombs being sent from Yemen to the United States in what President Barack Obama called “a credible terrorist threat.”

One of the packages was found on a UPS cargo plane at East Midlands Airport, about 160 miles (260 km) north of London.

The other was found at a FedEx Corp (FDX.N) facility in Dubai.

UPS has said it expects deliveries to reach 24 million worldwide on Dec. 22, matching last year’s busiest day. That holiday volume would be up 60 percent from a typical day.