International parcels achieved volume growth of 12 per cent and revenue growth of 12.3 per cent in 2005/06. This was due mainly to the growth of Express Courier International, an increase in outbound international business parcels (12 per cent volume growth) and inbound parcels and other express services (11.8 per cent).

During the year we signed a bilateral Memorandum of Understanding with New Zealand Post regarding delivery charges and service performance. This will ensure that our trans-Tasman prices and service performance remain competitive.

Express Courier International

Last year we announced that Australia Post had formed a partnership with China Post, Hongkong Post, Japan Post, Korea Post and the United States Postal Service to create the Asia–Pacific’s largest express courier network. The alliance of postal service providers is the first of its kind and has been developed to meet the demand for lower-cost international courier services.

In its first full year of operation (since its launch in March 2005) Express Courier International achieved a volume increase of 22.5 per cent and revenue growth of 28.3 per cent.

Express Courier International offers trackable door-to-door delivery of documents and goods to 190 countries and territories, with delivery between most major cities taking two to four business days. Service performance between the alliance countries improved greatly this year and was a significant factor in our continued success.

The dedicated national Express Courier International call centre and an outdoor advertising campaign both helped to raise product awareness and knowledge among our customers this year.

International gateway facilities

As part of a commitment to the Federal Government, Post provides facilities and equipment to ensure 100 per cent screening of inward international mail by the Australian Customs Service and the Australian Quarantine & Inspection Service.

The construction of two new gateway facilities, where this screening takes place, was completed during the year in Melbourne and in Sydney. An upgrade of material handling equipment, including X-ray machines, is due for completion in both facilities by September 2006.