x Abu Dhabi, UAETuesday 25 July 2017

Aramex considers Asia moves

Aramex, a logistics and transport solutions company based in Dubai, is considering opportunities for acquisitions and joint ventures across Asia after expanding into South Korea.

Aramex, a logistics and transport solutions company based in Dubai, is considering opportunities for acquisitions and joint ventures across Asia after expanding into South Korea.

It is part of a strategy to tap the region's strong economy and an increase in trade between Asian countries and the Middle East.

Aramex yesterday announced it had signed a partnership agreement with CJ GLS, a logistics company based in Seoul, through which it will offer courier and freight services.

"We're also looking at the Philippines, Vietnam and Thailand," said Othman Al Jeda, the chief executive for Asia at Aramex, adding that the company was studying opportunities for acquisitions and joint ventures in those markets. "We're in discussions with parties now."

The company is looking at opportunities for three main products in Asia - its International Express courier service, freight forwarding and domestic distribution, he said.

Mr Al Jeda declined to provide figures for expected revenue from Aramex's latest agreement and its planned investments.

Aramex has concentrated on expansion in Asia for the past four years and now has a presence in Singapore, Indonesia, Malaysia, Hong Kong and China.

"Asia is obviously important because the markets are still emerging. We feel that Asia economically is very strong," said Mr Al Jeda.

"The traffic into our other regions is major - into the Middle East mainly," he said. "So a lot of products and trade from China, from South East Asia, from South Korea is growing into the Middle East and into Africa, which is another area we've been concentrating in."

Aramex recently announced the launch of a joint venture company with SinoAir, and last year it expanded in Africa with the acquisition of One World Couriers and In Time Couriers in Kenya, and Berco Express in South Africa.

Aramex had a full-year net profit of Dh211.5 million (US$57.5m) last year, up 4 per cent on the previous year.

rbundhun@thenational.ae

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