2017 Transport & Logistics Market Research Analysis Report On Aramex - Adi Backoffice
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2017
Transport & Logistics Market Research
Analysis Report On Aramex
1 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
Summary
This report is the product of market and brands and major alliances and sister
performance of the Logistics & Shipping concern of recent years. The Report data
Company that describe about its strategic has representing in a better way through
analysis, growth of the company, infographics, graphs, tables and figures.
comparison of detailed financial The modern technologies has been
information for the past five years. To explained which are used by the company
study about the market strategy of the to grow in modern world to provide easy
company that lead to strong growth of the way to access them by the customers. At
company, deep insight of vertical sectors the end of the report SWOT analysis of
and major products. To study about their the company have to be discuss that is a
segment’s sale over the last five years. planning tool to understand the
Here we discuss about the company’s company’s strength, weakness,
Progressive key events associated with opportunities and threats to the company.
the company, major products, services
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1 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
Table of Contents
1.0 Introduction .................................................................................................................................. 3
2.0 Market Strategy ............................................................................................................................ 5
3.0 Logistics Markets......................................................................................................................... 14
3.1 Air Freight.................................................................................................................................... 14
3.2 Land freight ................................................................................................................................. 14
3.3 Ocean freight .............................................................................................................................. 15
3.4 Automotive Logistics ................................................................................................................... 15
3.5 Bulk Logistics ............................................................................................................................... 16
3.6 Cold Chain Logistics ..................................................................................................................... 16
3.7 Contract Logistics ........................................................................................................................ 17
3.8 e-commerce ............................................................................................................................... 18
3.9 Express and Parcels ..................................................................................................................... 19
3.10 Freight Forwarding .................................................................................................................... 22
3.11 Information and Management Services ................................................................................... 23
3.12 Intermodal Transport ................................................................................................................ 23
3.13 Ports .......................................................................................................................................... 23
3.14 Project Logistics ........................................................................................................................ 25
3.15 Rail Transport ............................................................................................................................ 25
3.16 Reverse Logistics ....................................................................................................................... 26
3.17 Road Transport ......................................................................................................................... 26
3.18 Service Parts Logistics ............................................................................................................... 27
4.0 Vertical Sectors ........................................................................................................................... 29
4.1 Agriculture, Food & Perishables ................................................................................................. 29
4.2 Consumer/ Retail ........................................................................................................................ 29
4.3 Fashion/ Textiles ......................................................................................................................... 29
4.4 Healthcare/ Pharmaceutical ....................................................................................................... 30
4.5 High Tech..................................................................................................................................... 31
4.6 Oil & Gas...................................................................................................................................... 31
5.0 Financial Highlights ..................................................................................................................... 32
5.1 Aramex Finances: Revenue by Business Segment ...................................................................... 34
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2 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
5.2 Aramex Finances: Revenue by Geographic Location .................................................................. 35
5.3 Aramex Finances: International express ..................................................................................... 36
5.4 Aramex Finances: Freight forwarding ......................................................................................... 37
5.5 Aramex Finances: Domestic express ........................................................................................... 39
5.6 Aramex Finances: Logistics ......................................................................................................... 41
6.0 Operational Analysis ................................................................................................................... 43
7.0 Technology .................................................................................................................................. 48
8.0 Alliances ...................................................................................................................................... 50
9.0 Sister Concerns............................................................................................................................ 53
10.0 SWOT Analysis........................................................................................................................... 56
11.0 Conclusion ................................................................................................................................. 57
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3 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
1.0 Introduction
Aramex is a United Arab Emirates-based public joint stock company that offers freight, express,
logistics, e-commerce, records management and supply chain solutions. Established in 1982, it
operates primarily in the Middle East, but also has a growing presence in other parts of the world,
including in Europe and North America.
Recent financial growth in the business
In 2016, Aramex reported revenues of AED4.34bn, up 15.66% year-on-year. Strong revenue growth in
2016 reflects additional income generated primarily in international cross-border express business as
well as in Asia Pacific. In the first nine month of 2017, the company reported revenue of AED3.39bn,
6.66% higher than the same period of previous year 2016. Similarly, EBITDA increased by 8.38% during
first nine months of 2017 (AED427m) in comparison to last year (AED394m).
Main operation in the business Other operations includes catalogue
shipping services, document storage,
Aramex operates its business through five airline ticketing and travel, visa
operating segments Including Express, Freight services, and publication and
Forwarding, Domestic, Logistics and Others. distribution
The express segment being the largest Recent performance of the segments
segment of the company accounts
major part of the revenue every year. In 2016, Express represented XX.XX%
It includes delivery of small packages (AEDX.XXbn) of the total revenue of the
across the globe to both, retail and company. In the same year Freight
wholesale customers. Forwarding segment accounted XX.XX%
Freight forwarding includes (AEDX.XXbn) of the total revenue followed by
forwarding of loose or consolidated Domestic (XX.XX%), others (X.XX%) and
freight through air, land and ocean Logistics (X.XX%). During first nine months of
transport, warehousing, customer 2017, Express segment contributed XX.XX%
clearance and break bulk services. (AEDX.XXbn) of the total revenue followed by
Domestic express: includes express Freight Forwarding (AEDXXXm), Domestic
delivery of small parcels and pick up (AEDXXXm), Logistic (AEDXXXm) and Other
and deliver shipments within the (AEDXXXm).
country Geographical overview with financial
Logistics includes warehousing and its performance
management distribution, supply
chain management, inventory Aramex geographic regions are segmented to
management as well as other value four areas: Europe, North America, Middle
added services. East and Africa and Asia and other. Aramex
has its largest market in Middle East and
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4 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
Africa and it accounted XX.XX% of company accounted by North America (X.XX%) in 2016.
revenues in 2016. It has built an extensive During nine months of 2017 Middle East &
network throughout Asia/others and Europe Africa, Asia /Others, Europe and North
which accounted XX.XX% and XX.XX% of America contributed XX%, XX%, XX% and X%
company revenues respectively. The revenue of the company respectively.
company's remaining revenues was
Aramex: Geographical Distribution in term of revenue during 2016
X.XX%
XX.XX%
Middle East and Africa
Europe
XX.XX% Asia/other
North America
XX.XX%
Other business segments 2016, Aramex launched new e-Commerce
lanes to better serve major African
The performance exhibited now by the e-
destinations, and introduced new low-cost e-
Commerce platform is the best ever so far.
Commerce solutions to the US through postal
The e-Commerce platform is the strongest
networks. In addition, it also established a
performing segment of its business,
Door-to-Door e-Commerce solution to
accounting for XX% of its annual revenues and
Europe, using London as a low-cost clearance
is currently on the rise at XX% annually. In
gateway.
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5 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
2.0 Market Strategy
The Company’s vision is to extend its growth momentum, register a strong performance and is on
economic rebound in its trading routes across Asia, Africa and Europe. It has made an impact with
the effective introduction of market leading express delivery and logistics services to the Middle East
and other emerging economies.
Expansion and new partnerships for strategic growth
In July 2017, the company expanded its operations across Ethiopia through a Master Franchise
Agreement with Logix Express PLC, to cater to the country’s rapidly growing needs for innovative
logistics and last-mile delivery solutions. With this expansion, Aramex is now present in XX African
countries. Aramex’s operations in Ethiopia include door-to-door delivery and pickup, customs
clearing, freight forwarding, and e-services, including Shop & Ship and Drop & Ship.
Aramex Bot service launched for customers and as part of the ongoing efforts to expand
its presence and inject new investments into
In August 2017, Aramex, officially launched of
the Egyptian market, inaugurated its new
its new (AI)-enabled Chatbot on Facebook
headquarters in Alexandria. The Opening of
Messenger. Named "Aramex Bot", the service
new headquarters reflects the expansion plan
enables personalized, scalable conversations
in in the Egyptian market and to upgrade
with customers about shipment-related
services to be in line with company’s leading
queries and different service offerings.
domestic and international position, in a bid
“Aramex Bot” provides users with a
to meet the growing needs of customers on
convenient way to easily find Aramex nearest
the back of the economic reforms and
locations, track shipments and share
expected increase in investment flows of
preferred delivery location. It also offers
major international financial institutions in
enables customers in the UAE to schedule a
Egypt over the next few years.
delivery for personalized shipments and e-
Commerce parcels. The chatbot service will Expansion of facilities in Egypt
soon be available to all Aramex customers
Aramex facilities in Egypt cover around
across the Middle East.
XXXXXX sq m and are equipped with state-of-
The launch of "Aramex Bot" is further the-art technology and cutting-edge security
evidence of Aramex's innovative approach to systems. All facilities are in full compliance
introducing new technologies to improve the with the highest global standards of
overall customer experience and business environmental conservation. Aramex services
efficiency and optimize last-mile delivery and products include express delivery, freight
solutions. forwarding, logistics, supply chain
Inaugurated new headquarters in Alexandria management, e-commerce and record
management.
In October 2017, Aramex, as part of plans to
double investments in Egypt to meet its In the same month of 2017, Aramex added
customers’ increasing demand for services new ten electric vehicles to its fleet in
© Copyright ADI Group6 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
Amman, Jordan. This comes as part of a albeit on a grander scale; once fully
longer-term strategic move by Aramex to operational it will generate over X megawatt
convert the entire fleet to electric vehicles, in of solar power. The company is also aiming to
order to reduce operational CO2 emissions introduce similar projects to all its facilities
and mitigate climate change. Aramex is where the regulations permit in the coming
currently transforming its Dubai warehouse years.
facility to incorporate similar technology,
Strategy: 2017 News to receive purchased goods from online stores
in the US, the UK, and more than XX other
2017 countries - quickly and at affordable rates.
November- Aramex launches “Shop & Ship The service is available in over XX countries
FLEX” worldwide.
October-Aramex expands its presence in
Aramex added its innovative and hugely Egypt by inaugurating a new headquarters in
successful Shop & Ship (S&S) service, the Alexandria
service that makes global online shopping
happen. Due to the global high demand for As part of the ongoing efforts to expand its
Shop & Ship, increasing customer base, and presence and inject new investments into the
rapidly evolving needs of e-commerce Egyptian market, Aramex, inaugurated its new
customers, Aramex has launched its new and headquarters in Alexandria. This comes in line
exclusive membership option: “Shop & Ship with the company’s strategy to double
FLEX”. investments in Egypt and meet customers'
increasing demand for innovative products
Shop & Ship is an online last-mile delivery and services.
service from Aramex which enables hundreds
of thousands of consumers around the world
© Copyright ADI Group7 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
Aramex facilities in Egypt cover around on simple keywords used during the
XXXXXX sq m and are equipped with state-of- conversation. The launch of "Aramex Bot" is
the-art technology and cutting-edge security further evidence of Aramex's innovative
systems. All facilities are in full compliance approach to introducing new technologies to
with the highest global standards of improve the overall customer experience and
environmental conservation. Aramex services business efficiency and optimize last-mile
and products include express delivery, freight delivery solutions.
forwarding, logistics, supply chain July-Aramex Expands Presence in Ethiopia
management, e-commerce and record
management. Aramex announced the expansion of its
August- Aramex goes online with expansion operations across Ethiopia through a Master
in Addis Ababa Franchise Agreement with Logix Express PLC,
to cater to the country’s rapidly growing
Aramex has expanded its operations across needs for innovative logistics and last-mile
Ethiopia through a master s franchise delivery solutions. With this expansion,
agreement with Logix Express, to cater to the Aramex is now present in XX African
country’s rapidly growing needs for logistics countries.
and last-mile delivery solutions. As part of its
business expansion strategy, Aramex Ethiopia As part of its business expansion strategy,
inaugurated five outlets in Addis Ababa, which Aramex Ethiopia would be inaugurating five
would increase the number of outlets in the outlets in Addis Ababa by August 2017, which
city to ten. would increase the number of outlets in the
August-Aramex’s new Artificially Intelligent city to ten. Outside the capital, the company
Chatbot launches currently operates two outlets in Dire Dawa
and Hawassa and has plans to open five new
Aramex launched its new (AI)-enabled outlets in Bahir Dar, Gondar, Jimma, Dessie,
Chatbot on Facebook Messenger. Named and Mekelle. Aramex Ethiopia also planned to
"Aramex Bot", the service enables further expand its operations by adding XX
personalized, scalable conversations with new outlets by the end of 2017.
customers about shipment-related queries
and different service offerings. “Aramex Bot”
provides users with a convenient way to easily Strategy: 2016 News
find Aramex nearest locations, track
shipments and share preferred delivery 2016
location. It also offers enables customers in
August - Aramex has announced its
the UAE to schedule a delivery for
partnership with NewBridge
personalized shipments and e-Commerce
Pharmaceuticals.
parcels. The chatbot service will soon be
available to all Aramex customers across the As part of the collaboration, Aramex will
Middle East. provide a range of logistics services for
NewBridge in the Middle East, Africa, Canada
As part of Aramex’s continuing drive to
and the UK.
enhance service levels, the new chatbot can
also detect customers satisfaction rate based
© Copyright ADI Group8 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
Based in Dubai, UAE, NewBridge pharmaceutical goods. As a result of the
pharmaceuticals is a regional specialty partnership, Aramex has stated that it will be
company providing a one-stop-solution to able to further penetrate the healthcare
pharmaceuticals, biological, genomics and market and take advantage of an increased
other healthcare companies. Its focus is on in- demand for logistics services in the
licensing and commercialising FDA and pharmaceutical industry within the region.
EMA/European approved innovative
therapeutics and diagnostics within the June - Aramex announced a multi-award
emerging markets of the Middle East & Africa winning 3 word addressing platform that
regions. made an investment of AUSD$X.XXm as part
of a AUSD$X.XXm Series B funding round
Through the partnership, Aramex is managing with what3words.
the logistics of patient samples across any
clinics and hospitals from the Middle East to The e-commerce operations are further
the US for advanced clinical testing. Aramex is enhanced by this investment. The deal was
also providing temperature controlled storage also contributed by previous investors - Intel
and transportation of medication for Capital and British funds Force Over Mass and
NewBridge from various distribution hubs in Mustard Seed.
the UK and Canada to healthcare facilities
The company is partnering by integrating 3
within the Middle East and Africa.
word addresses into its e-commerce
Furthermore, Aramex is providing NewBridge operations across the Middle East, Africa and
with customs clearance, secondary packaging, Asia. It uses the "what3words" address
labeling, vaulting and guarded transport system to further advance its last-mile
services as part of the partnership. delivery solutions. Investment in numerous
mobile-based start-Aramex helps improve its
Commenting on the agreement, Joe Henein, last-mile delivery solutions, including Grab
CEO of NewBridge Pharmaceuticals, said, and Logisure in India, Shippify in South
“This partnership with Aramex gives us America and CashBasha in Jordan and Saudi
significant opportunities to expand our Arabia.
business proposition and take advantage of
the increasing demand for our solutions More than XXX countries are using
across the Middle East and Africa. We are “What3words” already and this address
dedicated to addressing the medical needs of system is available in XX languages. The new
our customers and this partnership allows us investment is utilised to launch its voice
to reach more businesses and patients who recognition product in the smartphone,
rely on our full range of pharmaceutical wearables, and automotive sectors and
services.” develop its 3-word address system in several
Asian languages. For the growth and global
In addition to having facility hubs based in the expansion this investment could be a great
UK and Canada, Aramex plans to set up a third support.
facility hub in the US, and will continue to
handle the storage, transport and delivery of June - Aramex displayed an interest in selling
NewBridge’s medicine and other its Sydney-based MailCall Couriers to
© Copyright ADI Group9 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
Australia Post’s StarTrack Courier in the is without doubt the next logical, big move.
month of June this year. The Company marked its presence in New
Zealand for the first time having scalable
For an unfaltering focus on Asia, Aramex and synergies with its own infrastructure and
Australia Post also entered a joint-venture extending its reach across the region while
steering their way to make a mark in the strengthening its existing operations in
global e-commerce market. To build on the Australia. The company’s vision of enhancing
service capability of such business, the and expanding operations in the region also
agreement is intended to attain Australia allows it to further contribute to the
Post’s StarTrack International global e- development of Asia-Pacific’s e-Commerce
commerce postal solutions business. sector and facilitate cross-border trade.
This would aid “Aramex” to mature in the The two regions clearly marked for swift e-
Australian e-commerce market, seizing more Commerce market growths are New Zealand
inbound e-commerce parcel volumes, while and Australia. Aramex’s global network and
also offering a platform for outbound growth, presence is further enriched with - the
particularly for small Australian businesses. extension of operations to New Zealand, and
reconnoitring existing business in Australia.
January - Fastway Limited (Fastway Couriers)
The procurement helps strengthen Aramex’s
headquartered In New Zealand is a leading
position in Asia-Pacific proposition and
courier service provider that Aramex
worldwide footprint, building on possessed
acquired in January.
operations in Indonesia, Singapore, Hong
This takeover is listed as the second big Kong, Malaysia, China and Australia.
acquisition for Amarex in the Asia-Pacific
region to date and includes a 100.0% buyout
January – In 2015, Aramex got its hands on a
of the Company’s business in New Zealand
XX% stake in WS One General Trading LLC
and Australia for NZDXXX.XXXm (Nearly
(WS1), a cross-border parcel consolidation
AEDXXX.XXXm).
service provider operating out of Ohio, in the
“Fastway Couriers” has a global footprint in 63 United States for an indenture of AEDXm.
regional depots and XXXX courier franchisees
Once received, the packages are then shipped
through Ireland, Australia, New Zealand,
by WS1 through its professionally managed
Northern Ireland and South Africa. The
warehouse, to over XX different nations. This
company transports 16.0m parcels globally to
aids them to be the most efficient, cost-
XXXXX customers each year, which has more
effective while also securing shipping options
than XXX franchise partners across New
for its customers, XX% of which are already
Zealand alone. The various facilities provided
Aramex’s clients.
are cost effective, reliable and fast delivery
services that are backed by the latest Aramex’s e-commerce business is expected to
innovative technologies and online parcel be further strengthened with this deal that
track and trace facilities. also supports the Company’s mission of
easing enhanced cross-border trade. WS1’s
For Aramex, after deals in Thailand and
Australia last year, acquiring Fastway Couriers
© Copyright ADI Group10 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
asset-light business model also compliments it business by connecting more online shoppers
perfectly to fit “Aramex’s” global network. directly to e-retailers in the United States.
For Aramex, WS1 is an excellent strategic fit, Aramex made a series of strategic acquisitions
with scalable synergies that employ Aramex’s in Africa and the Asia-Pacific to extend its
own global infrastructure. The company global footprint in 2014. The WS1 deal
could further expand its e-Commerce provides significant opportunities for Aramex
proposition by its existing international to further its mission of international
shipping service, Shop and Ship. The expansion and make the most of the currently
proposition would definitely help grow its B2C increasing demand for logistics, delivery and
e-commerce solutions globally.
© Copyright ADI Group11 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
Strategy: 2015 News traffic growth rate, while the customer
demand for digitization and secure data
2015 - In April, An Aramex subsidiary named storage will continue escalating rapidly. It is to
InfoFort, an information management meet the need for a logical and strategic fit
solution provider in the Middle East and and help regional customers meet this
Africa, declared the acquisition of a 51% increased demand, that CBKSoft and InfoFort
stake in Turkey-based CBKSoft Software Inc. are aligned.
CBKSoft deals in creating custom software January - “Aramex Express Box” is a preset
solutions that help empower businesses and kiosk that is expected to facilitate
improve the bottom line; it is also the leader international and domestic express
in the Turkish electronic content management shipments for Aramex customers, by means
(ECM) market and caters to the need for of strategical placement of boxes at selected
significant opportunities for both Aramex and Al Ansari Exchange branches around the
InfoFort to continue their regional growth United Arab Emirates.
while facilitating the demand for pioneering
information management and business It would then become easier for customers to
solutions. prepare their packages and drop them in the
secure kiosks at times and places appropriate
It would further expand InfoFort’s regional to their schedules.
network by giving Turkish customers greater
access to its client–focused, technology- The service offers “Aramex Express Boxes” to
driven solutions. The services of enVision® prolonged service times, more United Arab
and CBKSoft will also be exported to InfoFort’s Emirates locations in addition to its existing 14
markets across the Middle East and Africa. outlets, as well as mutiple payment options
“Envision” is available in five different including credit and debit card transactions.
languages and can thus be easily incorporated
into routine business operations; the service A massive number, around XX% of
can be implemented in varied market respondents favoured the idea of using a self-
environments. After the acquisition, the service machine to pay for and send packages
management at CBKSoft remains unchanged and express shipments, which led to the
and continues to manage the company affairs. introduction of these self-service portals in 14
Al Ansari Exchange locations, with plans to
The range of information management introduce more in the future. The service was
solutions it renders and its reach within introduced as “Aramex Express Box” and is
Turkey, have resulted in significant now available in 14 of Al Ansari Exchange’s
competitive differentiation for its business branches across Dubai and Sharjah.
and brand. The company strongly believes
that InfoFort is the right partner for it to
widen its presence, both locally and in the Strategy: 2014 News
Middle East and Africa.
2014
By 2018, the Middle East and Africa are
December - Middle Eastern logistics group,
projected to deliver the world’s highest cloud
Aramex, the freight forwarding and express
© Copyright ADI Group12 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
delivery outfit, acquired PostNet, the master paved way for its entry into the Southern
franchise for South African retailer and the African region. PostNet South Africa is
largest privately-owned counter network in expected to provide significant opportunities
the document and parcel industry in South for Aramex that will help it continue its
Africa. regional expansion, taking advantage of
swelling demand for logistics, delivery and
The deal involved a XXX% takeover of the business solutions.
business from the then owner OneLogix
Group for $XX.X m. The deal of “Berco Express” in 2011 further
outspread Aramex’s exclusive service
A chain of XXX stores that serve XXXXX proposition to numerous new locations across
customers daily is linked to PostNet across the South Africa, this time allowing the customers
country. Holding the master franchise, each to pick up and drop off packages from across
PostNet store in the country will continue to XXX locations. It also made it possible for the
be owned and run by the corresponding South African businesses and consumers to
franchisees. To further nurture the retail avail excellent levels of service, global
potential of the brand in South Africa, as expertise and scale that Aramex provides.
master franchisee, Aramex is determined to Aramex continues to view South Africa as a
work in close alliance with each PostNet store. high potential market with substantial growth
prospects. This particular acquisition is
Post the acquisition, Aramex B2C services,
testimony to the company’s long-term
including international and domestic express
commitment to contribute majorly towards
shipping and its unique e-commerce business
the country’s sustainable development.
Shop and Ship (called Aramex Global Shopper
in South Africa), were made available across November - Expanding further, the
all PostNet locations in South Africa. organisation entered a joint venture with Leo
Furthermore, by allowing PostNet customers Global Logistics, a prominent logistics service
complete access to its client – focused, provider in Thailand, to form Aramex
technology-driven solutions further extended Thailand.
Aramex’s reach in Africa.
This move will help fortify Aramex’s Asia-
Aramex only targets companies such as Pacific proposition while establishing itself on
PostNet who are a perfect strategic fit in the company held operations in Malaysia,
order to leverage their suitable, scalable Singapore, Indonesia, China, Hong Kong, and
synergies with the company’s existing Australia that will also facilitate smooth cross
infrastructure. It will remain bullish on its border movement through the region. The
outlook for future acquisitions in markets joint venture is a fragment of the company’s
across Asia, the Middle East and Africa in aggressive development strategy in
particular, both to build its operations and international growth markets.
strengthen its global footprint.
The logistics sector in Thailand is credited for
Berco Express (now Aramex South Africa), in an annual generation of around $XXbn for the
2011, was taken over by Aramex to step foot economy, with a current reliance on transport
in the South African market, which further and land freight. Given its population of more
© Copyright ADI Group13 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
than 65m and a rapidly evolving e-commerce demand from Australian consumers for online
platform, Thailand also renders abundant shopping delivery solutions.
opportunity for Aramex to further enhance its
business of online shopping delivery solutions. To reap maximum benefits, the company is
opting for Mail Call Courier’s specialised
Aramex has a well-defined worldwide “WantItNow” technology, applying it to its
network and international expertise. This other e-commerce markets across the globe.
added joint venture complements its For online shoppers “The WantItNow” service
allegiance to continuously serve both its proposes same-day delivery. The Australian
existing and new clients in Thailand with all- company ties up with XX retailers for the
inclusive integrated total logistics solutions. service. In the first quarter, Aramex reported
a XX% rise in its net profits to DhXX.Xm, driven
June - The Melbourne and Sydney by its growth in sub-Saharan Africa, the
acquisition, with metro as its prime focus, is Middle East and Asia. Revenues on the other
part of the company’s aggressive expansion hand increased X% to DhXXXm.
strategy in global growth markets.
May - Aramex, in May, announced the
An expenditure of approximately DhXXXm signing of a Joint Venture with InPost, the
was incurred to acquire a leading courier world’s largest parcel lockers network.
service in metro express deliveries in
Australia. The partnership between Aramex and InPost
ensures consumers, across the Middle East
The investment is a brilliant strategic fit for and Africa, access to private automated parcel
Aramex, with suitable and scalable synergies lockers to conduct all e-commerce activities.
utilising Aramex’s own global infrastructure, The agreement comes on the back of growth
enabling the company to play a crucial role in in e-commerce services across the Mena
offering important delivery solutions to its region. The online spending in the region was
customers in Australian metropolitan projected to accomplish US$XXbn mark in
markets. It also provides some exciting 2015 from $Xbn in 2012, according to a survey
opportunities to further develop and grow its from “PayPal” and “Ipsos” in September 2014.
global e-commerce plan across the Asia-
Pacific region.
With a long and extremely successful track
record, InPost, continues to develop topnotch
The e-commerce market in Australia
products and services in Europe and Asia and
registered an expansion, from $XXbn in 2011
has enthusiastically ventured into
to over $XXbn in 2013, as the Australian
partnerships across the Middle East and
consumers increasingly obtained goods and
Africa. To further improve and grow its e-
products from the Asia-Pacific region. It
commerce plan, the business has numerous
becomes the fourth largest e-commerce
synergies that seamlessly offer some thrilling
market in the Asia-Pacific region, providing
opportunities.
substantial prospects for Aramex to expand its
e-commerce proposition across the region in
order to take advantage of the increasing
© Copyright ADI Group14 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
3. 0 Logistics Markets
3.1 Air Freight: Summary
Aramex’s worldwide air freight network offers a range of rapid and cost-effective delivery solutions
to match business needs. It ensure complete door-to- door transportation and smooth customs
clearance. Its advanced technology and network of offices around the world allow advanced tracking
of its shipments, from the moment customer place its shipping order to when it reaches its final
destination.
3.2 Land freight: Summary
Aramex has one of the biggest and most radical land freight networks in Middle East, Ireland and
United Kingdom. It provides dynamic and cost-effective shipping solutions to suit business needs. It
also offers regular scheduled services, and full truck loads and consolidations to various destinations.
Modern truck fleets armed with GPS-tracking technology, scheduled services and strategically-
located terminal hubs, together make Aramex land freight a smart and cost-effective shipping
alternative.
The company offers XX-hour online tracking shipping by land from / to Dubai, Bahrain,
along with prompt shipping updates by Email Saudi Arabia, Qatar, Oman and Kuwait, by
or SMS. Its Middle East Trucking Portal is the exploiting a few simple online procedures.
latest development in the field of solution for Employing the Aramex Middle East Trucking
all shipping requirements. Ports, all land freight shipping needs will be
assembled into one contact point. Customers
This new online service is custom designed to
will relish lower freight shipping costs,
cater the specific needs of company’s
reduced time spent on shipping duties and
customers in the GCC region; it facilitates
proliferate customer satisfaction.
ARAMEX Land Freight Operations
Country City
Bahrain Manama
Jordan Amman
Kuwait Kuwait
Lebanon Beirut
Oman Muscat
Qatar Doha
© Copyright ADI Group15 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
Saudi arabia Saudi cause-way (king fahad bridge) via
bahrain, batha, dbrz (dammam bonded & re
export zone) haditha, diba
Kuwait Kuwait
3.3 Ocean freight: Summary
Aramex provides wide-ranging ocean freight take care of cargos through the entire
forwarding services. shipping cycle, from collection to the delivery
to the eventual consignees. The ocean freight
Backed by a worldwide network of offices
forwarding services are always available be it
encompassing key global shipping lines, highly
Full Container Loads (FCL), Less Than
skilled teams of specialists and state of the art
Container Loads (LCL), import or export,
technology systems, its ocean freight services
consolidated or project cargo.
The Ocean freight caters to the following full customs brokerage service, full
crucial needs - Full Container Loads (FCL), Less documentation service, product insurance
Than Container Loads, Customs Clearance and programs, real time information systems,
Door Delivery, global cargo consolidation cross dock management and a united network
programs, container stripping / break bulk, of communication & tracking systems.
3.4 Automotive Logistics: Summary
Aramex has found that using a three word Ireland, Netherlands, and the United
address system for deliveries in Dubai was Kingdom.
42% faster than using traditional street
Aramex's multi-modal transportation network
addresses.
uses air, land and ocean to offer the best
A lot many services offered by the company choices to its customers. Aramex can avail
include international and domestic express several methods of transportation to get
delivery, integrated logistics solutions, freight customer’s shipments transported to the final
forwarding, information and document consignees. Being a Total Transportation
management solutions, consumer retail Solutions provider, Aramex can mix modes of
services and e-commerce solutions. It delivers shipping for customer’s goods to reach home
services primarily to, from and within the conveniently and cost effectively. Like air-sea,
Middle East and South Asia. The company is air-land, sea-land etc. Inter-modal
expanding wisely and has recently stretched transportation has proved to be a cost-
its geographical presence in Europe with the effective and an innovative solution to certain
acquisition of Two-way Vanguard, a logistics product lines with an outstanding service and
and freight service provider that has offices in delivery system to boot.
In 2014, Aramex buys PostNet from oneLogix. automotive logistics in South Africa and the
southern African region. Most recently in
The large business of OneLogix is Vehicle
2016, the global logistics giant Aramex
delivery services and with commercial vehicle
partners with what3words. What3words will
delivery services, it is a major operator in
© Copyright ADI Group16 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
use the new investment to launch its voice
recognition product in the smartphone,
wearables, and automotive sectors and 3.6 Cold Chain Logistics: Summary
develop its 3 word address system in several Aramex also leads in providing all-inclusive,
Asian languages. excellent logistics and transportation
solutions. Aramex controls an extensive
Aftermarket
network of cold chain services in support of
The organization stands strong and lends the healthcare/ pharmaceuticals industry. As
enthusiastic aftermarket services for the
following classes of customer: international
and domestic express delivery, freight
forwarding, logistics and warehousing,
documents managements and consumer
retail services and Personal Protection
Equipment (PPE).
An added advantage for Aramex with regards
to its services in this area is visibility of
shipments and suppliers. The company
leverages what it sees as an advantage in IT
systems, in addition to its considerable
network of facilities. the leading provider of delivery solutions in
the MENA region, Aramex has been at the
3.5 Bulk Logistics: Summary proven leader of developing industry-specific,
Aramex is providing services to the customised, end-to-end solutions for its
transportation of bulk materials, which can be clientele. Among its various offerings, the one
liquid or dry products. that’s rated best is Aramex Bio, a specialised
door-to-door delivery solution for biological
Aramex’s bulk product includes coal,
samples and pharmaceutical materials. It was
minerals, oil, chemicals and gas etc.
designed to encounter the shipping needs of
Aramex do not store any hazardous materials pharmaceutical companies, research centres,
that require special storage conditions, waste hospitals and laboratories. This delivery
materials, explosives and living Tissues. solution is a complete door-to-door solution
for the healthcare industry that is ideal for
Aramex is well-placed to meet customers hospitals, laboratories and pharmaceutical
logistics needs in the oil and gas industry. It companies that need to transport
has a vast presence in the Middle East region temperature and time sensitive biological
where it has Centralized regional distributions specimens and pharmaceutical materials.
centers, and effective logistics experience. Aramex Bio covers Packaging, Compliance,
Aramex has Extensive experience in Documentation, Visibility, and On-Time
customizing solutions and it has a variety of Delivery.
technical competencies including effective
forward planning, ability to serve specific or
specialized service needs, visibility of demand,
and cost savings due to reduced inventories.
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average daily summer temperature is over
40°C with 55% humidity and in Kuwait it is
As of year-end 2016, Aramex had 21,444 44°C with 25% humidity in Dubai. Aramex Bio
comes with temperature-controlled packaging
shareholders, with the largest single - boxes and cold packs - to preserve specific
shareholder owning more than 10%. temperature ranges during shipping, covering
frozen (-25°C to -15°C)/(-80°C to -60°C), cold
(+2°C to +8° C) and controlled ambient (+15°C
to +25 °C) as biological samples and
medications are adversely affected by the
The most significant challenges in the MENA surrounding environment.
region are extreme temperatures. The
providing NewBridge with customs clearance,
labelling, secondary packaging, vaulting and
In 2016, Aramex declared its partnership
guarded transport services as deemed
with NewBridge Pharmaceuticals - a regional
mandatory as per the partnership agreement.
specialty company based out of Dubai,
providing a one-stop-solution to biological, As the international healthcare market
pharmaceuticals, genomics and other continues to develop, regulation and
pioneering healthcare companies. compliance for the transportation and storage
of medicine is becoming all the more
As part of this alliance, Aramex now renders
inflexible. This association between Aramex
an extensive array of logistics services for
and NewBridge is subsequently bridging the
NewBridge in Africa, Canada, the Middle East
gap in the market by guaranteeing the secure,
and the UK.
safe and efficient transport of medicines,
Through this corporate tie up, Aramex is human specimens and other pharmaceutical
overseeing the logistics of patient samples goods throughout the region, while keeping in
across clinics and hospitals from the Middle line with local regulations at all times.
East to the U.S. that are utilised for
In addition to having facility centres based out
progressive clinical testing. It is further
of UK and Canada, Aramex soon plans to set
involved in offering temperature controlled
up a third facility hub in the United States,
storage and transportation of medication for
and will carry on handling the storage,
NewBridge, to and fro between distribution
transport and delivery of NewBridge’s
hubs in the UK and Canada and healthcare
medicine and other pharmaceutical goods.
facilities within the Middle East and
Africa. Furthermore, the company is also
3.7 Contract Logistics: Summary
Aramex has been growing with developments FMCG, etc with regular increase in demand
in different production and service outputs for contract logistics.
such as oil & gas, construction, military,
It provides international and domestic total
transport solutions to its clients through a
© Copyright ADI Group18 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
number of services including contract logistics Africa. Over the past few years; although the
services mainly to, from and within the outsourced logistics market in the United
Middle East and South Asia. States represents 25% of the world's
aggregate turnover, the revenue contribution
Aramex has expanded its network of coverage
of emerging markets within the consolidated
and broadened its service offering to areas
results of major logistics providers has been
like Europe and South East Asia with
growing at a faster pace.
strategically plan to incorporate offices in
3.8 e-commerce: Summary
Aramex deliver online orders from website to The customers can design their storefronts,
customers locally and globally, offering full update online catalogues, manage orders and
supply chain solutions from storage of payments securely and ship products on-time
products to order fulfillment coupled with the to their customers
latest technologies.
“Electronic Data Interchange” provides
With the latest technologies, Aramex delivers structured transmission of data (orders,
online orders from website to customers notifications etc.) between the system and of
locally and globally, offering full supply chain the company through integration to allow the
solutions from storage of products to order customers to make purchases and manage
fulfillment coupled. transactions automatically. An application
named Aramex APIs allows connecting the
It has several solutions to empower e-
company's applications directly to Aramex via
commerce entities - including technical
the web.
integration with Aramex’s tracking and
shipping system, various logistics and eHouse
transportation services, and Aramex REDe.
For Online Retailers for Receipt of Stock,
REDe is a solution that enables businesses to
Storage, Pick & Pack, and Order Processing,
sell online.
Aramex eHouse provides a cost-effective and
Aramex’s technology partner, e-reasoning, flexible logistics and warehousing end-to-end
offers customers use the advanced Martjack user solution.
platform to set up an online store swiftly and
For ensuring speed of delivery to online
economically. This is a solution which let
customers, Aramex’s eHouses are strategically
customers design their storefronts, update
located around South Africa, and it provides
online catalogues, manage orders and
payments securely and ship products on-time
to their customers with Aramex.
E-Commerce development also remains a
key strategic goal, and the company
The MartJack platform is already integrated
with Aramex’s delivery solutions and services. continues to view its partnerships with e-
A wide range of customised solutions for e- Tailers as a vital element in its future
commerce ventures, from delivery-fulfillment
to warehousing to customs clearance is
growth.
provided by Aramex.
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full integration to online retailers and visibility shipment tracking.
on stock holding, reporting, order status and
Asia Pacific e-commerce Logistics: CEP delivery solutions and small parcel delivery
Provider Overview – Aramex services in the Asia-Pacific. By targeting New
Zealand and Australia, this deal gives an
Aramex, acquired Fastway Limited (Fastway opportunity to serves more businesses and
Couriers), a leading courier service provider consumers shopping online.
and this deal involves a 100% buyout of the
company’s business in New Zealand. The e-commerce market in Asia-Pacific region
is growing at a much faster pace than other
Fastway Couriers has global franchisees across markets, growing by 44% against 14% for
Australia, New Zealand, Ireland, Northern Europe and 12% for North America
Ireland and South Africa. Its courier respectively for Asia-Pacific’s B2C. The rapid
franchisees offer cost effective, reliable and growth trend is increasing the demand for
fast delivery services and are supported by efficient and reliable small parcel delivery
the latest innovative technologies and online services and Fastway Couriers experienced
parcel track and trace facilities. significant growth.
The company transports 16.0m parcels Aramex’s strong presence in Asia-Pacific
globally to 75,000 customers each year, building the company’s owned operations in
which has more than 250 franchise partners Singapore, Malaysia, Indonesia, Hong Kong,
across New Zealand alone. China and Australia, and helps facilitate
Aramex’s recent deals in Thailand and smooth cross-border movement across the
Australia have scalable synergies with its own region.
infrastructure and extending its reach across
Europe and Asia e-commerce Logistics:
the region, the acquisition now makes it
Logistics Providers- Aramex
present in New Zealand for the first time and
strengthens its existing operations in The company efficiently continued to expand
Australia. It also helps in enhancing and its Express network across the globe,
expanding its operations in the region into assigning new service partners in Europe and
further contribute to the development of Asia, while optimizing transit times and
Asia-Pacific’s e-commerce sector and facilitate routing between different origins and
cross-border trade. This deal provides destinations.
Aramex’s strategy to expand and explore e-
The e-commerce sector in emerging markets
commerce proposition and take advantage of
in the Middle East, Africa and Asia keeps
the increasing demand for online shopping
developing at a rapid rate it will remain a
major strategic focus for Aramex to enhance
Aramex serve over XXXXX customers delivery and customer service capacities and
network serviced destinations in developing
spanning the Middle East, Africa, Europe,
countries like Europe and Africa. For the
Asia, Australia and North America, as well as growth of our e-commerce business the
over XXXXXX “Shop and Ship” customers. company has come-up with more e-
commerce solutions across the board
including a return portal in Europe to manage
© Copyright ADI Group20 | P a g e Transport & Logistics Market Research Analysis Report On Aramex
different return/exchange scenarios for and parcels door-to-door from around
customer including the introduction of online the world to meet business needs.
duty payment solutions. Domestic Express service offers
reliable door-to-door solutions for
The United Kingdom and Ireland are the one
time-critical packages. It provides
of the most extensive and technologically
package delivery, package collect,
advanced land freight networks in the Middle
cash on delivery and return service.
East which Aramex operates. The new regular
European routes connecting mainland Europe Aramex offers reliable low cost express
with Scandinavia are established, in addition services to South-East Asia, Middle-East and
to African routes from Kenya and Tanzania to Africa for small parcels. Aramex Tracking API
neighboring land-locked countries. is the tracking system for e-commerce
developers to get real time Aramex tracking
North America e-commerce Logistics
info. It gives customers access to track
For e-commerce North America is a more Aramex parcels right at shopping cart and
mature market, which has major players such marketplace.
as E-Bay or Amazon and from the logistics side
too. The company includes everything from
operational efficiency at the back-end to
managing customer service excellence during
the fulfillment process. The biggest Aramex’s
clients in the e-commerce market is
Nahel.com, which initially offered back-end
services to sell the products of customers on
existing online marketplaces, such as eBay.
3.9 Express and Parcels: Summary
Aramex offers package and non-package
activities and it has emerged as a market
leader in the Middle East and Africa.
It offers a range of express shipping options
from export to import and domestic express.
For need of package as quickly as
possible for export express, the
company provides door-to-door
shipping for urgent. It also provides
online shipping and real-time tracking
updates, delivery notifications via e-
mail and SMS, customs clearance and
a wide range of non-standard export
and clearance services etc.
The company also offers solution for
importing time-sensitive documents
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