Retail progress helps domestic courier services grow in Romania

The DHL international express delivery company last year witnessed a 60% growth in the sector of domestic delivery services, with this sector expected to continue as one of the company’s main growth drivers in the future, says Gian Sharp country manager with DHL.

“Last year, internal courier services had the fastest growth rate (59.7%) and the domestic courier market will continue to develop a great deal over the next five years, driven by the arrival of new retailers such as IKEA,” said Gian Sharp.

He explained that while document delivery will not experience a rise, as documents can now be sent by e-mail, express parcel shipment services would certainly witness growth.

Though internal courier services account for only around 10 percent of the company’s turnover the growth remains significant.

In 2005, DHL derived around 18 million euros from courier services alone, with the company’s representatives putting last year’s growth rate at more than 20%, which means the company’s 2006 turnover for this sector exceeded 20 million euros.

Consecutively the company posted a 21.7% increase on the sector of express imports, which was bolstered by rising online sales with Romanians now able to buy products from abroad by using the Internet. As regards the volume of express import services, the company also expects significant increases this year, but the biggest increase will be witnessed on the segment of day definite services.

According to the company’s representatives DHL is a global as well as domestic leader in the segment of express delivery services. DHL expects its domestic turnover to increase by 35-40% this year, having already witnessed growth of over 30% in the first three months of 2007 against the same period last year.

Besides the investment DHL made in acquiring a new aeroplane this year, the company will invest another 3 million euros in building a road platform in Otopeni and new terminals nationwide.

DHL’s consolidated turnover in Romania, including logistics revenues, reached 30 million euros last year, up 26% against the previous year. The company expects its turnover to advance by another 30 percent this year to a total of 40 million euros.