DHL and New Zealand Post have invested A$140 million (€85 million) in a new joint venture designedto target the Australian domestic express market and take on market leaders Toll Group and TNT
Express. The two partners already cooperate successfully in the New Zealand market.The new 50-50 company, Express Couriers Australia (ECA), was formally created today (July 1)and comprises six complementary regional express parcel companies in metropolitan and regionalmarkets in Queensland, New South Wales, Victoria, South Australia and Western Australia. These areCouriers Please, Parcel Overnight Direct and Northern Kope Parcel Express, which were already ownedby New Zealand Post, along with PEP Transport, VicFast Couriers and Hills Transport.
The six businesses, with combined annual revenues of more than A$200 million (€ 121 million),will be interconnected to form an express courier network with a coverage of more than 80% ofAustralia’s populated area. Within their markets, however, the businesses will continue to operateas stand-alone operations, New Zealand Post announced.
“Australia has a large and growing market for express courier and freight services,” said NewZealand Post Group CEO John Allen. “We are giving this group of successful businesses thenetworking capabilities to build their competitive offering to customers and continue growing overthe long term.”
Allen further said it was very much “business as usual” for the six businesses within ECA.“They are brands of real strength in their respective territories, with a combined customer base ofover 65,000 and total annual revenues above A$200 million (€ 121.14 million). With the formation ofECA, the businesses are positioned to support each other’s development over the long term,” headded.
New Zealand Post and DHL Express have completed a series of transactions between them andwith other parties to form ECA. Allen said the transactions resulted in a one-off gain to NewZealand Post of A$20 million (€12 million) to A$25 million (€15 million), subject to earningsexpectations, which will be included in the 2007-08 financial results. ECA will be governed by aBoard of equal representation from New Zealand Post and DHL Express.
In Australia, DHL Express focuses mostly on the international express sector, and operates anOceania hub in Sydney that was opened in 2005. It has been building up its domestic presence inrecent years with several new depots and a network of Servicepoints.
In 2005, DHL Express and New Zealand Post formed a joint venture, Express Couriers Ltd, forthe domestic New Zealand market, incorporating the postal company’s express and logisticsbusinesses, supported by DHL’s international network. In 2007, it acquired road transport companyRoadstar Transport.
