DUBAI, Sept 7 (Reuters) – Dubai-listed courier Aramex (ARMX.DU) said on Tuesday it had split its core businesses as part of a reshuffle aimed at capturing growth in the post-COVID-19 transportation and logistics industry.
The company, in which Abu Dhabi-backed investor ADQ last year bought a 22.25% stake, has set up Aramex Express, which will offer deliveries between businesses and consumers, and Aramex Logistics, in charge of business-to-business operations, it said in a statement.
It has appointed Mohammad Alkhas as chief operating officer (COO) for Aramex Logistics and Alaa Saoudi as COO for Aramex Express.
“The global transportation and logistics industry is undergoing a fundamental shift, driven predominantly by the boom in e-commerce, supply chain disruptions, customers’ increasingly discerning expectations and the turbo speed of digitization,” Aramex Chief Executive Officer Othman Aljeda said.
“For Aramex to stay ahead of the curve and remain a competitive, reliable and sustainably growing industry leader, we decided to focus on capturing growth opportunities by decoupling our core services.”
The express segment of the business accounts for 70% of the group revenues and Aramex said it planned to boost growth by creating new trade lanes domestically and internationally.
It plans to expand its logistics business – which accounts for 28% of revenues – by increasing its presence in core markets and markets that enable trade flow into the Middle East.
A rebound in oil prices is expected to help growth in the freight forwarding business, the statement said.
As part of the reshuffle, the company has created a new regional structure and appointed a chief strategy officer to head its international expansion and merger and acquisition plans.
Reporting by Davide Barbuscia; Editing by Rashmi Aich
Our Standards: The Thomson Reuters Trust Principles.