Team Global Express Targets Growth in Regional Parcel Market

Team Global Express is undergoing a rebrand and making major investments as it looks to challenge Australia Post’s strong position in the online shopping delivery sector. Winning market share in rural areas, however, remains a significant challenge. Backed by Allegro Funds, the logistics company wants to expand its presence while cutting its annual net loss from $187.8 million to $114.8 million.

Previously known as Toll Global Express, the company has now fully separated from the Toll Group and has invested more than $200 million into technology upgrades, vehicle improvements and a refreshed brand. A public listing or sale is still possible, though leadership says neither is a current priority. The core business continues to involve transporting a wide variety of freight including food and copper across Australia.

To operate more efficiently, TGE has reduced its workforce by up to 10% mostly through trimming corporate roles. Staff numbers now sit at around 5,000. The company says there is still strong potential in both business-to-business logistics and the expanding consumer parcel market. Regional delivery is a particular focus with demand from online shopping continuing to rise outside city areas.

Australia Post remains a dominant competitor, especially in non-metro regions where it handles an estimated 95% of parcel deliveries. That position is largely due to its exclusive access to post offices. TGE believes it can offer added value in less-served regional areas and is pushing for better access to these markets.

As part of its restructuring, TGE is spinning off its Tasmanian freight operations to Strait Link Shipping, which is also owned by Allegro. The company has already received $25 million as an upfront payment and expects the deal to be completed in roughly three months. The move is intended to improve service in Tasmania by enabling direct customer partnerships.

TGE is also counting on a $1.8 billion rail agreement with Aurizon to transport goods more efficiently around the country. The rail deal only becomes profitable if train usage reaches at least 70% capacity, a goal that was still unmet by the end of 2024. Volumes are rising, but hitting that target remains difficult for both partners.

Source: Australian Financial Review, Team Global Express official blog, Rebrand.com

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