Aramex announced that it has entered into a joint venture with Leo Global Logistics, a logistics service provider in Thailand, to form Aramex Thailand. The joint venture is designed to strengthen Aramex’s Asia-Pacific proposition, building on the company’s owned operations in Singapore, Malaysia, Indonesia, Hong Kong, China and Australia to help facilitate smooth cross border movement in the region.
Leo Global Logistics offers services including air, sea and land freight forwarding as well as door to door small parcel delivery. The company will provide Aramex with important import and export logistics capabilities in Thailand and South East Asia. Mirroring Aramex’s asset-light business model, Leo Global Logistics has low ownership of fixed warehouse and transportation assets, working with strategic partners in order to maximize efficiencies and reduce costs.
According to Aramex the logistics sector in Thailand generates approximately $10bn for the economy, with a heavy reliance on overland transportation. With a population of more 65m and a developing e-commerce platform, Aramex has identified Thailand as an opportunity to offer online shopping delivery solutions.
Hussein Hachem, Chief Executive Officer of Aramex said, “I am delighted to announce this joint venture in Thailand, which sets the stage for Aramex Thailand to play a key role in continuing our expansion into the Asia Pacific market and to benefit from our established global network. The performances of our operations throughout Asia-Pacific this year have been very encouraging overall; we recently announced record growth figures for Aramex, and our expansion into global markets such as Thailand is a key contributor to this.”
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