If the A$210 million acquisition is approved, it could expand Singapore Post’s logistics presence in Australia.
The company is making the acquisition through Freight Management Holdings (FMH). Singapore Post (SingPost) has also agreed with FMH’s remaining minority shareholders (12%) to fully own the firm.
Locate2u CEO Steve Orenstein says it is a wise business step. “They will have the ability now to consolidate that business. There will be areas where they can pull out some costs inside of that business. There is no need to run many teams across both their companies. They’re probably going to consolidate their warehousing. Their model is different from CourierPlease.”
SingPost is familiar to Australia. CouriersPlease is a fully-owned subsidiary of SingPost.
“But their model allows them to have large amounts of volume going into a warehouse. From there, it’s delivered from their account to their customers. That’s a different model to CourierPlease, but it works very well. So I think it’s very smart,” says Orenstein.
SingPost’s two centuries experience
Founded in 1819 by Stamford Raffles, a single mail office collected and delivered a small volume of letters, run by just three people. As time passed, postal and marine traffic grew, becoming a separate department.
Eight years ago, SingPost replaced its existing mail sorting machines with new integrated sorting machines. This helps to increase the automation process, sorting capacity, and speed” at its Singapore Post Centre.
Border Express’ success
Border Express is the sixth-largest transport and distribution services company in Australia. It has comprehensive freight connectivity, warehouses, and regional centers, according to local reports.
Border Express has 16 facilities and runs a fleet of over 700 vehicles.
SingPost says: “This transaction aligns with SingPost’s strategic ambition to expand its logistics network. [It] fosters synergy within Australian operations to deliver enhanced value to its customers and partners.”
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Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
