Aramex plans to continue buying freight companies in key markets around the world to build up itsglobal network, Osama Fatalleh, senior vice president and chief strategic officer, told the CPL
Summit in Barcelona this week.The Middle East-based freight logistics company wants to become the world’s fifth-largestexpress player through a mix of subsidiaries, alliance partners and franchises. “Our industrycannot continue to be controlled by four companies on a global scale,” Fatelleh said.
Over the last few years, Aramex had built up a worldwide network through this mixed approachbut continued to face the challenge of having partners acquired by one of the big four players,Fatelleh said. In response, Aramex had decided to move from a cooperation model to a financialholding strategy in key markets such as the US, Asia and Central Europe, he said.
At the same time, Aramex was broadening its product portfolio into freight. In future, it waslikely to buy freight companies and then widen them with express services since there were now fewattractive express companies left to buy, he commented. Aramex also planned to open up its networkto smaller local or regional players to give them more opportunity to compete with the big fourintegrators, he added.
Austrian Post board member Walter Hitziger told the conference that the postal group willkeep the local brands of its acquired subsidiaries such as trans-o-flex, VOP (Netherlands) and DDS(Belgium) rather than operate under a single brand. This also applied to companies in EasternEuropean countries.
Presenting the strategy of developing into a European niche player, Hitziger highlighted thatAustrian Post will focus on B2B parcels internationally, while trying to defend its domestic B2Cmarket share from new competition. The group would try to acquire one of the top three companies innew markets, he noted.
Addressing the topic of “how to find the pot of gold at the end of the rainbow” in EasternEurope, Marek Rozycki, CEO GeoPost Central and South East Europe, emphasised that CEP playersneeded special approaches in the region. Key success factors include careful preparation, flexiblelocal structures and a de-centralised organisation. Above all, they need to have a clear mission,adopt realistic goals and not give up after setbacks, he commented.
Financial investors are increasingly looking at moving into the express and parcels sector,Boris Winkelmann, managing director of ITA Logistics, told the conference. Sector companies neededcareful planning when considering mergers and acquisitions, he stressed. This ranged from riskanalysis to in-depth strategic preparations.
