Toll Group vs. Team Global Express: Understanding the Differences

Toll Group and Team Global Express (TGE) are two prominent players in the logistics and transportation sector in Australia, but they serve distinct functions after a major structural shift. Here’s a breakdown of their differences, the elements that remain under Toll Group’s control, and the operations that were spun off into TGE.

Background of the Split

The division occurred in 2021 when Japan Post Holdings, the parent company of Toll Group, sold its Global Express business unit to private equity firm Allegro Funds. This move was intended to restructure Toll’s operations and focus on its core competencies while allowing the spun-off entity to operate independently as Team Global Express.

Toll Group: Post-Split Operations

Core Areas of Control:

Toll Group continues to manage the following segments:

1. Global Logistics:
   • International freight forwarding services, including air, sea, and road transportation.
   • Integrated supply chain solutions for industries such as retail, healthcare, and manufacturing.
2. Contract Logistics:
   • Warehouse management, inventory control, and value-added services.
   • Specialized logistics for complex industries like mining and oil and gas.
3. Global Express (Excluding Australia):
   • Toll retains its international express operations, focusing on the Asia-Pacific region.
4. Government and Defense Services:
   • Tailored logistics solutions for defense and government sectors, ensuring secure and reliable transport.

Strengths:

• Extensive global network with a strong presence in the Asia-Pacific region.
• Emphasis on high-value logistics solutions requiring complex integration.
• Focus on technology-driven supply chain innovation.

Team Global Express (TGE): Independent Operations

What Was Spun Off:

TGE inherited the domestic express business previously managed by Toll. This includes:

1. Parcel and Courier Services:
   • National parcel delivery network catering to businesses and consumers.
2. Road Freight and Distribution:
   • Comprehensive road transport services across Australia and New Zealand.
3. Last-Mile Delivery:
   • Specialized focus on last-mile logistics for e-commerce and retail sectors.

Focus Areas:

• Building a lean, customer-focused operation with greater agility in the domestic market.
• Expanding its presence in last-mile delivery, a rapidly growing segment driven by e-commerce.
• Strengthening its technology platforms to improve tracking, customer communication, and operational efficiency.

Key Differences Between Toll Group and TGE

Strategic Directions

Toll Group:

• Continuing to expand its global footprint in integrated logistics.
• Leveraging technology to offer end-to-end supply chain visibility and optimization.
• Strengthening partnerships in Asia-Pacific markets to capitalize on regional growth.

Team Global Express:

• Scaling its domestic network to capture more market share in last-mile delivery.
• Focusing on sustainability initiatives, including the adoption of electric vehicles for urban delivery.
• Enhancing customer experience with real-time tracking and transparent communication.

The split between Toll Group and Team Global Express marked a strategic realignment, allowing each entity to focus on its core strengths. Toll Group continues to dominate in global logistics and integrated supply chain solutions, while Team Global Express targets the dynamic domestic logistics market with a streamlined, customer-centric approach. Together, these entities exemplify the evolving nature of logistics and transportation in Australia and beyond.