Aramex aims to spread wings in Thai logistics
LEADING global logistics transport provider Aramex yesterday announced the launch of its latest own operations in Thailand in a joint venture with Thai-owned Leo Global Logistics as part of its aggressive expansion strategy in global growth markets.
Jordan-based Aramex, which has a strong foothold in the Middle East and the United States, sees an opportunity for express delivery services in the region where the economy is fast growing.
“We will focus on small and medium-sized enterprises and entrepreneurs. We can help them grow with our wide range of services, flexibility in cost, and technology, said Othman Aljeda, chief executive officer for Aramex in Asia.
Aramex’s initiative in Thailand marks its 66th own operation out of 355 others, which include franchise, partner and representative offices. Besides Thailand, other countries where Aramex has expanded its own operations are Singapore, Malaysia, Indonesia, Hong Kong, China and Australia.
Khanchai Choonhaswadikul, country manager for Aramex Thailand, said the joint venture – 49 per cent held by Aramex Singapore and 51 by Leo Global Logistics – has been officially operating for four months.
Initially, Aramex Thailand would focus on providing door-to-door delivery services for letters, documents and parcels, covering Bangkok and provinces such as Pathum Thani, Ayutthaya, Samut Prakan, Nakhon Pathom, Chachoengsao, Chon Buri and Rayong.
To serve its clients, he said the firm would seek a new station near Suvarnabhumi Airport as well as more vehicles and staff.
“We expect to see Aramex Thailand’s revenue this year at Bt50 million,” said Khanchai.
He said Aramex also planned to offer its “Shop and Ship” services in Thailand, which is the service provided to clients who order their products via any shop online and use Aramex to ship those products to them.
This service could help save shipping cost by about 20-30 per cent, as Aramex’s technology would enhance the shops on websites to send it products ordered by the clients and consolidate them with enough volumes before shipping to the destination.
With a dramatic growth in e-commerce spending, Khanchai said he expected this could help the growing “Shop and Ship” services in the country.
According to Aljeda, last year spending via e-commerce amounted to US$8 billion. He expected it to triple to US$34 billion in the next three years.
Meanwhile, Kettivit Sittisoontornwong, president and CEO of Leo Global Logistics, believes there could be synergy between Leo and Aramex in a way that Leo could use its strengths in freight forwarding while Aramex has competence in express delivery services as well as cross-border delivery.
He added that the company also planned to raise about Bt200 million funds via the capital market by listing its shares on the Market for Alternative Investment. He expects to file the request for an initial public offering with the Securities and Exchange Commission in April.
