Toll eyes off Australia Post for parcel delivery market

29/10/2012 - Transport and logistics firm Toll Holdings wants to take a greater share of the parcel delivery business from Australia Post. Trevor Chappell

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Toll managing director Brian Kruger said on Friday that the company would be increasing the size of its Toll Consumer Delivery business, which at the moment has relatively small operations.

Kruger said the size of the parcel delivery market in Australia was worth around $550 million this year.

"That's the spend on the logistics task," Kruger told reporters after the company's annual general meeting in Melbourne.

"At the moment, we've probably got about six or seven per cent of that market.

"Australia Post has the lion's share of that.

"Our goal is to grow that very quickly. The nice thing about it is that it's a rapidly growing market."

He said the market had grown by around 25 to 30 per cent over the past few years as consumers bought more goods over the internet.

Kruger said Toll hoped to differentiate its service from that of Australia Post's by emphasising Toll's rate of successful delivery, which he said was over 90 per cent.

Upscaling the parcel delivery service would not require a large investment given that Toll already had an extensive network of depots and a pick-up-and-delivery fleet that handled business-to-business freight.

The biggest investment — around $10 million — would be required for the technology, such as hand-held information devices for drivers, to run the business.

Kruger said the margins that Toll would get on every extra piece of freight were very good.

Toll says the service will deliver goods door-to-door, or alternatively, to a local newsagent.

"Ultimately, what we're working on with the newsagents' groups is to end up with about 3,000 alternate delivery points or alternate pick-up points that we an use for Toll freight."

Source: AAP

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Have your say...

Quale | 29/10/2012 17:07 1

Toll wants to differentiate from Australia Post by giving a succesful delivery ninety percent of the time, I prefer to receive parcels sent to me, 100% of the time. Australian Post delivers to my letterbox(be it a 20litre drum on a post) in a rural area. Will Toll?

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