Aramex, the leading global logistics and transportation solutions provider, announced its joint venture with Leo Global Logistics, a prominent logistics service provider in Thailand.
The newly launched Aramex Thailand will 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 across the region. The joint venture is part of the company’s aggressive expansion strategy in global growth markets.
Leo Global Logistics is one of Thailand’s foremost logistics firms, offering a wide range of worldwide services including air, sea, and land freight forwarding, as well as door-to-door small parcel delivery. Leo Global Logistics 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.
South East Asia is home to more than 542 million people, and with consumers purchasing an increasing number of goods and products online, total e-commerce sales reached $3.65 billion in 2013. Aramex is set to take advantage of this growing demand, as the volume of online transactions is predicted to steadily increase across the region.
Annually, the logistics sector in Thailand generates approximately $10 billion for the economy, with a current reliance on land freight and transport. With a population of more 65 million and a developing e-commerce platform, Thailand also offers prolific opportunity for Aramex to offer online shopping delivery solutions.
Commenting on the joint venture, Hussein Hachem, Aramex CEO 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 performance of our operations throughout Asia-Pacific this year has 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. ”
Othman Aljeda, chief executive officer for Aramex Asia, said: “Leo Global Logistics is perfectly aligned with Aramex’s business strategy and model and I’m sure they will bring significant added value to our existing operations in South East Asia.”
President and CEO of Leo Global Logistics Kettivit Sittisoontornwong, said: “We look forward to working closely with Aramex to strengthen our offering in freight forwarding, express services, e-commerce solutions including Shop and Ship, as well as secure records and information management solutions. Aramex has a strong global network and international expertise and this joint venture complements our dedication to continuously provide both our existing and new customers in Thailand with comprehensive logistics solutions.”