the future of amarex made in sydney - home - …...freight business,” says lipinski. aramex and...

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Case study The Future of Aramex Made in Sydney

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Page 1: The Future of Amarex Made in Sydney - Home - …...freight business,” says Lipinski. Aramex and Fastway were impressed by the NSW Government’s efforts to improve transport infrastructure,

Case study

The Futureof AramexMade in Sydney

Page 2: The Future of Amarex Made in Sydney - Home - …...freight business,” says Lipinski. Aramex and Fastway were impressed by the NSW Government’s efforts to improve transport infrastructure,

“Aramex considered it an attractive proposition to have a reliable service provider in (Australia and New Zealand) and to capitalise on their eCommerce growth and trade.”Peter Lipinski, CEO Fastway Couriers (Australia).

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Page 3: The Future of Amarex Made in Sydney - Home - …...freight business,” says Lipinski. Aramex and Fastway were impressed by the NSW Government’s efforts to improve transport infrastructure,

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Fastway delivers eCommerce growth for Aramex through Sydney

To help realise its eCommerce growth ambitions, Aramex acquired

a courier company and based it in Sydney.

Aramex has come a long way since launching in Amman, Jordan,

in 1982 as Arab American Express. Back then, its humble aim was

to become the first courier company based in the Middle East.

Now headquartered in Dubai, Aramex is a global leader in logistics

services and has a market value of more than US$1.8 billion.

It operates in more than 65 countries and continues to grow

its global footprint.

As part of its strategy to expand into fast-growing markets,

Aramex acquired parcel delivery company Fastway Couriers in 2016.

This gave Aramex access to Australia’s and New Zealand’s booming

eCommerce markets.

“Aramex considered it an attractive proposition to have a reliable

service provider in these markets and to capitalise on their

eCommerce growth and trade,” says Peter Lipinski, CEO of Fastway

Couriers Australia.

The logistics giant has been keeping an eye on the Asia–Pacific

region’s burgeoning eCommerce markets. In recent years,

eCommerce has been driving the revenue growth of the company’s

express delivery business, which has outperformed all other

business segments.

Aramex expects eCommerce to continue to bring in

significant revenue. This makes Fastway a good fit for the

group because the courier company primarily serves

online retailers.

As part of the acquisition, Aramex moved Fastway’s headquarters

from Napier, New Zealand, to Sydney.

Fast facts about Aramex

Provides logistics and transportation services globally

Has businesses ranging from express courier

delivery and freight forwarding to warehousing and

records management

Headquartered in the United Arab Emirates and listed on the

Dubai Financial Market

Employs more than 15,000 people in about 600 offices

across the globe

Owns parcel delivery company Fastway Couriers in Australia

and New Zealand. Independent companies control Fastway’s master franchises in Ireland,

Northern Ireland and South Africa

Front cover image courtesy of Aramex.33333

Page 4: The Future of Amarex Made in Sydney - Home - …...freight business,” says Lipinski. Aramex and Fastway were impressed by the NSW Government’s efforts to improve transport infrastructure,

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Support from the NSW Government

The NSW Government supported

Aramex’s entry into Australia.

Through its United Arab Emirates

office, the state government

introduced Aramex to potential

business partners and service

providers as well as industry

leaders. This helped the company

develop an effective entry

strategy for the Australian market.

“We had a meeting with the

NSW Government to brief

us on the three areas being

developed, to see if there was any

opportunity for us down the track

as we looked to expand into the

freight business,” says Lipinski.

Aramex and Fastway were

impressed by the NSW

Government’s efforts to improve

transport infrastructure, which is

crucial for any logistics business.

Lipinski points to the planned

Western Sydney International

(Nancy Bird Walton) Airport as a

particularly important development

for the logistics industry.

The new airport is set to open

in 2026 at Sydney’s Badgerys

Creek. The ambitious project

includes the development of

three economic hubs around

the airport—all within what

is called the Western Sydney

Aerotropolis. These hubs

are expected to provide job

opportunities, new homes

and services.

Basing operations in Sydney

Moving Fastway’s base to

Sydney made sense to Aramex.

The city is a centre for trade and

commerce in Australasia and

the larger Asia–Pacific region.

Accessing international markets

is also much easier from Sydney.

“We consider Sydney the

commercial hub of Australia

and our network,” says Lipinski.

“The majority of our national

customers’ head offices are in

Sydney, and our presence is very

strong on Australia’s east coast.”

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Page 5: The Future of Amarex Made in Sydney - Home - …...freight business,” says Lipinski. Aramex and Fastway were impressed by the NSW Government’s efforts to improve transport infrastructure,

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“We consider Sydney the commercial hub of Australia and our network.”Peter Lipinski, CEO Fastway Couriers (Australia).

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Page 6: The Future of Amarex Made in Sydney - Home - …...freight business,” says Lipinski. Aramex and Fastway were impressed by the NSW Government’s efforts to improve transport infrastructure,

Expanding range of services

Despite being present in several

countries, Fastway previously

could only deliver domestically in

each of its markets. This changed

recently as it gained access

to Aramex’s global network.

Fastway customers in Australia

and New Zealand can now

send parcels to more than

220 countries and vice versa.

Fastway has also launched

Blu Couriers, a new parcel

delivery service based on

crowdsourcing. Using Fastway’s

network and technology,

anyone in Australia and New

Zealand can apply to deliver

packages and drivers are paid

per parcel—similar to how

the Uber model works.

Soon, Fastway will also be

able to offer air and sea freight

services in and out of Australia

and New Zealand. It currently

provides last-mile delivery of

overseas freight for

other companies.

“We’re duplicating what Aramex

does overseas to be considered

a wholly integrated logistics

provider that can deal with

small and large eCommerce

firms, individual customers and

business-to-business companies,”

says Lipinski.

Fastway is also using Aramex’s

technology to streamline its

backend systems. This should

help the company create

efficiencies in its processes and

meet its target of 15% parcel

volume growth in Australia.

“Once we’ve rolled out some of

our plans, we will then look at

expanding our footprint through

acquisitions,” says Lipinski.

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Page 7: The Future of Amarex Made in Sydney - Home - …...freight business,” says Lipinski. Aramex and Fastway were impressed by the NSW Government’s efforts to improve transport infrastructure,

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Learn more

The NSW Government assists businesses looking to establish, grow and

innovate in the transport sector by providing:

• market intelligence and information

• business case development

• assistance to identify suitable business locations

and partners in NSW

• familiarisation visits to NSW

• connections with government contacts and

the local business network.

The NSW Government offers a range of programs and initiatives to

support businesses to grow to reach their full potential in NSW.

The NSW Government Investment Concierge provides free,

comprehensive and confidential advice and services.

Contact our team today to explore the range of support we can

give to your company.

Contact us

NSW Government Investment Concierge:

T: +61 2 8222 4888

W: invest.nsw.gov.au

77777

Page 8: The Future of Amarex Made in Sydney - Home - …...freight business,” says Lipinski. Aramex and Fastway were impressed by the NSW Government’s efforts to improve transport infrastructure,

TheFutureMadeHereT: +61 2 8222 4888

W: invest.nsw.gov.au

© State of New South Wales through Treasury 2019.

The information contained in this publication is based on knowledge and understanding at

the time of writing (August 2019). However, because of advances in knowledge, users are

reminded of the need to ensure that the information upon which they rely is up to date and

to check the currency of the information with the appropriate officer of the Industry, Trade

and Investment team of NSW Government or the user’s independent adviser.

PUB19/360