Innovation and quality pay off for Aramex

Aramex, the Amman-based global transportation and logistics services company, is literally flying. Reason: Its net profits for the first half of 2009 stood at AED93.1 million (US$25.4 million) – a whopping 25 per cent growth over the AED74.6 million it posted in the same period 2008 and this, with the severe downturn. Manfred Singh reports.

Aramex Fadi Ghandour global transportation international delivery network logistics services

Aramex’s founder, Fadi Ghandour put it directly: “While the global economic slowdown continued to affect our revenue growth in this period (revenues fell by eight per cent), we maintained focus on operational cost efficiency and customisation capabilities to better adapt to customers’ changing business needs. This has enabled us to further improve our gross profit margins, control costs, and report an excellent netincome growth.”

He went on to add that Aramex continued “to see, and benefit from, an accelerated trend among companies across the Gulf region towards outsourcing logistics services”. Therefore, it was the ideal time for “steady geographic expansion in key emerging countries, mainly in Africa and Central Asia, which we believe are underserved. We also remain committed to invest further in developing our logistics infrastructure across the GCC and the Levant.” That’s Fadi Ghandour. Clear in his vision anda seeker of opportunities.

Established in 1982, Aramex has created a place for itself. Spread out worldwide, the company has been mentioned by economist Thomas L. Friedman in his book The World Is Flat because it had been able to derive the maximum benefit from “the flatteningof the world”.

A climate of collaboration
Ghandour took advantage of the liberal climate which enabled him to compete globally and collaborate with others. What started off as an express wholesaler for express delivery companies like FedEx, Airborne Express and others with DHL as its main competitor, Aramex today provides a gamut of services from express, logistics, freight forwarding and domestic distribution to mail-order catalogue services and mail forwarding services.