Freightways signs Australian Post as Toll makes play for kiwi market

Wednesday 2nd September 2009

Freightways Ltd., the country’s largest listed courier company, will deliver parcels for Australia Post from today, strengthening its distribution as Toll Holdings prepares to break into the kiwi market.

Freightways’ DX Mail and New Zealand Couriers units will handle Australia Post’s international inbound express mail service, air parcels and courier products through DX Mail’s international mail centre at Auckland Airport.

"We believe this relationship will benefit customers on both sides of the Tasman and deliver incremental value to shareholders and all other stakeholders of Freightways," said managing director Dean Bracewell in a statement.

The company will provide “seamless tracking of international products from point of pick-up overseas to final delivery in New Zealand." Shares in the company fell 2% to $2.91 on the NZX today, and have declined some 5.9% this year.

Australia’s Toll, which sold Tranz Rail back to the New Zealand government last year for some $690 million, yesterday announced it will enter New Zealand’s express package delivery market with a fleet of 55 small trucks and vans. CourierPost and Freightways hold around 85% of the market-share.

Last month, Freightways announced an underwritten dividend investment plan with Forsyth Barr to boost its balance sheet and preserve cash that would otherwise be paid out in dividends.

Businesswire.co.nz

Comments from our readers

No comments yet