Australia Post Invests Another $400 Million in Infrastructure to Meet Soaring Demand of Online Shopping

Australia Post has committed to invest another $400 million in new parcel facilities, fleet, and technology by mid-2022 to further upgrade its delivery network.

Don’t Miss

• Do you need a business bank account for your online business? Have a look at our review of the five best bank accounts for sellers, some of which are free with no minimum balance or deposits.
• Boost your social media engagement with Publer. Learn how you can save time writing engaging content faster with AI. ^[sponsored]
• eBay to compete with sellers now!
• New stamp prices and fee increases are coming from USPS on July 9.
• SMALL BUSINESS WEEK SPECIAL: Three tips for SMB ecommerce success in 2023.

The investment will help service the growing demand for services, bringing the total committed investment to improve its network to over $1 billion over the next three years.

This total includes recently opened major parcel processing facilities in Brisbane, Sydney, Melbourne, and Adelaide, as well as five new facilities currently under construction in Perth (WA), Bayswater (VIC), Western Sydney (NSW), Botany (NSW), and Tullamarine (VIC).

Over the next year, Australia Post will also invest an additional $20 million to upgrade its systems to cloud-based solutions to improve parcel scanning and tracking.

Australia Post Group Chief Executive Officer & Managing Director Paul Graham said it was essential the business continued to invest in major parcel processing hubs to keep up with the boom in online shopping experienced during the pandemic.

“Australia Post has an unrivaled delivery and post office network. We know our customers want their parcel delivered as quickly and efficiently as possible so that’s why we are further increasing capacity with five brand new processing facilities before our peak period in 2022,” Graham continued.

The strategic network investments include four new parcel facilities located near major eCommerce hubs in NSW and Victoria. The fifth one is a $42 million investment on Australia’s west coast to meet the growing demand for parcel services in the region.

“This is in addition to newly launched facilities in Adelaide and pop-up facilities across the network, adding 30 percent extra processing capacity this Christmas,” Graham added.

Australia Post is also investing in its extensive last-mile delivery network with an additional $31 million earmarked for a new fleet of electric delivery vehicles that are better for the environment and safer for its people.

Australia Post is Buiding for The Future

Online shopping has increased by 32 percent during the pandemic, with Australia Post consistently delivering more than 10 million parcels a week across the country.

Over 5.7 million Australian households now shop regularly online, and the organization believes eCommerce will continue to grow by 9-10 percent on average per year over the next decade.