The Australian parcels and logistics market is substantial, with an estimated annual value of $70 billion. Competition within the market is fierce, characterised by aggressive expansion strategies to provide business customers with access to global markets through complex supply chains.

At Australia Post, our focus in the 2005/06 financial year was to achieve continued growth from our existing services, with an emphasis on improving service performance and developing solutions to meet our customers’ requirements. Our 2005/06 results demonstrate that we are delivering reliable and competitive services.

The 2005/06 financial year was important for Australia Post, with the launch of Sai Cheng Logistics International, a joint venture with China Post to provide international supply chain services to the Asia–Pacific region. This – combined with the introduction of Express Courier International, in alliance with postal authorities in China, Hong Kong, Korea, Japan and the USA – has been significant for our business customers.

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