Freight expectations

zoom

Fadi Ghandour, founder and CEO of Aramex.

zoom

MOVING FORWARD: Aramex aims to expand its logistical expertise in South East Asia and China.

Aramex founder and CEO Fadi Ghandour tells Andrew White how the Middle East's biggest courier service expects to reap record revenues both at home and abroad.

The next big thing for me is to have a far stronger South East Asian presence, and that includes China," Fadi Ghandour, founder and CEO of Aramex, tells Arabian Business on the sidelines of the World Economic Forum on the Middle East in Sharm El Sheikh.

"That is where we are focusing: we have a couple of deals in the pipeline and we hope to have them done before the end of the year," he continues. "They will bring us a geographic presence, revenue, and management knowledge in South East Asia," he says.

That Aramex should be expanding further into Asia comes as no surprise. Growth is on the agenda, and the Middle East's biggest courier service is now one of the world's leading transportation solutions providers, a shift that is reflected in its stellar financial results.

Revenues for Q1 2008 rose 24% to US$134.5m, while net profit over the same period rose by 21% to US$9.85m. According to Ghandour, 2007 represented the company's "best year ever", with a 31% rise in revenues to US$485m.

In the 26 years since its foundation, the Dubai-based company has progressed steadily both in terms of its geographical presence and its earnings, and - due in no small part to the firm's expansion abroad - Ghandour expects Aramex to deliver similar growth in 2008.

"We will be comfortable with growth around at about 25%, and we like that - that's a very healthy number," he says. "That's the Aramex story: growth is going to be there. April is already a very strong month for us, so the trend that you saw in the first quarter will continue."

Such an increase will require the enhancement and enforcement of Aramex's presence across the globe.

The firm already employs more than 7,000 people in 307 offices in 195 major cities around the world, alongside a formidable set of strategic alliances extending its market presence. However, Ghandour is already looking to new markets from East to West.

"It is essential for us to diversify our revenue base, and to be what we've always said, across the trading routes of the world," he insists. "So we do have to be in South East Asia, and we do have to be in key markets in the US, both East Coast - Miami and the Florida area - and the West Coast."

"These are essential areas for us," he adds. "It's an opportunity and a paradox at the same time, because on the one side we have that easy advantage of being in a boom area, but on the other side we need to be in new markets."

That boom area is - of course - the Gulf. Global freight is expected to reach US$14 trillion by 2020, and the Gulf's strategic position as a key trade hub between Asia and Europe means that the GCC's imports and exports are now worth close to US$320bn a year.

Print | Email | Discuss this article |

READERS' COMMENTS

View all comments (0)

Have your say

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM