Thursday, October 4, 2012

Aussie Express Road Haulage Freight Outfit Has Boldly Gone

Qantas Drops Star Track and Picks up Option on Joint Venture
Shipping News Feature

AUSTRALIA – Following on from what we reported earlier this year, Qantas announced that it has reached an agreement to sell its 50% stake in the still excruciatingly named road haulage company, Star Track Express to Australia Post making Australia Post the sole shareholder in the express freight and logistics provider. Qantas has also acquired 100% of the air freight business Australian air Express from Australia Post. The investment is subject to shareholder and regulatory approvals with the transaction expected to be completed by the end of the year.

Qantas expects to receive net proceeds of A$408 million plus completion adjustments of approximately A$5 million from the transaction. It is estimated that the transaction will result in a profit of approximately A$30 million. Under the joint venture arrangements between Qantas and Australia Post, each party owned 50% of Australian air Express and Star Track in an arrangement that has existed for the past nine years. The transaction is subject to a number of conditions, namely Australian Competition and Consumer Commission approval for Australia Post’s acquisition of Star Track and final approval from Australia Post’s shareholder. Qantas Group CEO Alan Joyce said:

“Through this acquisition we will be able to offer an integrated air freight product across domestic and international networks. By leveraging the best from both businesses and delivering efficiencies, we will provide a market leading service to our customers. This transaction is consistent with the goals of the Qantas Group’s strategy. It enables us to improve a core business area while divesting a non-core asset, Star Track. We have enjoyed a constructive working relationship with Australia Post under the joint venture arrangements. We will continue to have a close commercial relationship with Australia Post and Star Track remaining major customers of Australian air Express and Qantas Freight.”

Australia Post has no plans to make any changes to the current management or operations of Star Track, and it is anticipated that the company and brand will remain as a standalone subsidiary within the Australia Post group. Ahmed Fahour, Managing Director and CEO of Australia Post, said:

“The growth in online shopping in Australia is increasing demand for flexible, timely and cost effective delivery solutions for businesses and consumers. Star Track also provides infrastructure capabilities that are of strategic and commercial benefit to Australia Post, including access to a fully automated network, track and trace technology and line-haul services options. Under single ownership, both Australia Post and Star Track will have a far more comprehensive offer to customers and the potential to unlock further value for our customers in the future. We have enjoyed a close working relationship with Qantas under the joint venture arrangements and we anticipate an even closer commercial relationship going forward.”