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SingPost buys courier in Oz for e-commerce last mile capability
SINGPOST subsidiary Quantium Solutions (Australia) has bought 100 per cent of Australian small parcel delivery company CouriersPlease Holdings from New Zealand Post group.
Experts say the A$95 million (US$78.13 million) acquisition is all about securing last mile capability in a fast growing market, a critical component of the e-commerce operation, reports Newark's Journal of Commerce.
The courier has extensive national coverage, a low cost network and operates an asset-light franchisee model, with depots located mostly in eastern and southern Australia.
CouriersPlease has a network of 575 franchisees nationwide, handling 11 million consignments in its 2014 financial year, ending in June with revenues of A$100 million.
SingPost group chief executive officer, Wolfgang Baier, said in a statement: "The acquisition of CouriersPlease, an established last mile service provider in Australia, will help to strengthen our e-commerce last mile capability to support our growing e-commerce logistics business in the region."
The parent company recently started construction of an e-commerce logistics hub at Singapore's Tampines LogisPark to serve its 1,000 regional e-commerce customers, including global brands such as Adidas, Levis, Canon and Toshiba.
The giant building will cover four football fields and will house fully automated parcel sorting across three floors, an office block, two warehousing floors and 150 loading bays.
"When operational by the second half of 2016, we will see a 30-40 per cent improvement in cost efficiency over the next 10-15 years compared to current operations," Mr Baier said.
More than a quarter of the group's revenue comes from e-commerce, and the company has quickly evolved from a domestic postal service into providing hub services connecting the region.
Alibaba group bought 10 per cent of SingPost earlier this year.
Experts say the A$95 million (US$78.13 million) acquisition is all about securing last mile capability in a fast growing market, a critical component of the e-commerce operation, reports Newark's Journal of Commerce.
The courier has extensive national coverage, a low cost network and operates an asset-light franchisee model, with depots located mostly in eastern and southern Australia.
CouriersPlease has a network of 575 franchisees nationwide, handling 11 million consignments in its 2014 financial year, ending in June with revenues of A$100 million.
SingPost group chief executive officer, Wolfgang Baier, said in a statement: "The acquisition of CouriersPlease, an established last mile service provider in Australia, will help to strengthen our e-commerce last mile capability to support our growing e-commerce logistics business in the region."
The parent company recently started construction of an e-commerce logistics hub at Singapore's Tampines LogisPark to serve its 1,000 regional e-commerce customers, including global brands such as Adidas, Levis, Canon and Toshiba.
The giant building will cover four football fields and will house fully automated parcel sorting across three floors, an office block, two warehousing floors and 150 loading bays.
"When operational by the second half of 2016, we will see a 30-40 per cent improvement in cost efficiency over the next 10-15 years compared to current operations," Mr Baier said.
More than a quarter of the group's revenue comes from e-commerce, and the company has quickly evolved from a domestic postal service into providing hub services connecting the region.
Alibaba group bought 10 per cent of SingPost earlier this year.
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