November 17, 2014: Aramex, the leading global logistics and transportation solutions provider, today 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. The company has built a reputation in providing comprehensive and dynamic customer solutions, by investing in logistics infrastructure and by establishing robust customs clearance capabilities.
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 $3.65billion 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 $10billion 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, 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."
Othman Aljeda, Chief Executive Officer for Aramex in Asia, said: "Leo Global Logistics has extensive industry and market experience in the region with an excellent management team who has significant first-hand knowledge and expertise. The company is perfectly aligned with Aramex's business strategy and model I'm sure they will bring significant added value to our existing operations in South East Asia."
Kettivit Sittisoontornwong, President and CEO of Leo Global Logistics commented: "We are very proud of the business we have built in Thailand over the years, becoming one of Thailand's leading logistics firms and look forward to working closely with Aramex to strengthen our offering in freight forwarding, express services, ecommerce 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 providing both our existing and new customers in Thailand with comprehensive integrated total logistics solutions."