Australia Post has announced that the company will invest over $2 billion to transform its national logistics network and create a ‘universal digital platform’ to deliver the for the increased services Australians are demanding.

 

The development strategy aims to create a world class parcel delivery network that will expand the Government Owned Corporation’s reach across Australia, while expanding the network of retail stores that will allow for a free Australia Post Digital MailBox to every Australian.

 

"This is the single largest investment in the network in Australia Post's more than 200 year history and will significantly expand the capacity of our parcels network, making it world class,” Australia Post’s CEO Ahmed Fahour said.

 

The announcement comes after the company posted a 16.6 per cent surge in profit, bringing the group’s annual profit to $281 million.

 

"An investment of this magnitude is only possible due to continued strong profit growth of 16.6 per cent in 2011/12 which has been achieved through disciplined cost management, innovation in our retail products and services and the continued growth in online shopping driving parcel delivery,” Mr Fahour said.

 

"We recognise that the demand for physical mail services will continue to decrease and while our parcels business is growing, increased competition and the fixed costs associated with maintaining our national mail network will challenge our ability to continue to grow and invest in the future.”

 

Mr Fahour said the continued investment in the 24/7 parcel lockers and retail superstores will mean the company will be ‘future proofed’ to provide service for the $11.9 billion online retail trade.