Dubai-listed logistics firm Aramex will split its core business in two, to stay ahead of competition in the changing industry, , the company announced on Tuesday. 

The company has created Aramex Express to handle the business-to-consumer (B2C) operations,  and Aramex Logistics to serve the business-to-business (B2B) segment, the company said in a statement to Dubai Financial Market (DFM).  

Key appointments have also been announced as a result of the restructuring. CEO Othman Aljeda said the company will be targeting “aggressive growth” in its logistic businesses.  

“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,” said Aljeda 

“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.” 

Plans 

As for Aramex Express, which accounts for 70 percent of the revenue, the company plans to open new trade lanes domestically and internationally while scaling up ground operations to cater to growing customer demands. 

“Our logistics business accounts for 28 percent of our revenues and we intend to aggressively grow our footprint in our core markets, and markets that will enable trade flow into the region,” Aljeda said.

The company will invest in specialised warehouses and scale up infrastructure beyond main cities, Aljeda added. He said there are good growth opportunities in various sectors including oil and gas with the revival in global oil prices and trade activity. 

Appointments 

Under the restructuring, Alaa Saoudi has been appointed chief operating officer (COO) of Aramex Express including Shop & Ship, e-commerce, fast-moving consumer goods (FMCG), SMEs and other lastmile solutions.  

Mohammad Alkhas will be COO of Aramex Logistics, which will handle air, sea and land freight, warehousing and distribution, across multiple industries including oil and gas, healthcare, pharmaceutical, aerospace, retail and fashion. 

Thomas Kipp, who was appointed COO of Aramex Group in November 2020, will leave the company to pursue other interests.  

A new regional structure has been created with eight global markets – Americas,  Europe, Sub-Saharan Africa, Gulf Cooperation Council (GCC),  South Asia, North Asia, Oceana and Middle East, North Africa and Turkey (MENAT).

Each region will be led by a regional vice president with commercial and operations teams. 

Aramex said the global logistics industry will reach $1,232 billion by 2025, registering a compound annual growth rate (CAGR) of 7.5 percent from 2020 to 2025. 

(Writing by Imogen Lillywhite; editing by Cleofe Maceda) 

Imogen.Lillywhite@refinitiv.com 

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