GLS group expands European footprint
GLS, the Royal Mail-owned international parcels group, has strengthened its European network with several financial investments and expansion moves. In the Czech Republic, it launched a start-up subsidiary on 1 April and will invest EUR 2m in the new company, including EUR 0.6m in the first year. GLS Czech Republic has its main hub at Humpolec, 100km from Prague, and plans eight more depots across the country in the near future.
The move marks a partial split from its previous system partner, General Parcel Czechy, owned by Germany’s Geis Group. “The key word is now ‘co-opetition’. Nationally we are competitors but in other areas we will continue to work together,” said GLS chief executive Rico Back. Geis will continue to send international parcels out of the Czech Republic via GLS, for example.
In Poland, the group has bought 100% control of GLS Poland in which it previously held 25.1% and plans a system partnership with the previous majority shareholder, the Raben Group. GLS Poland, formerly called Szybka Paczka, is one of the 3 largest parcels operators in Poland.
In Spain, GLS is expanding through its own network and a new partnership.
Barcelona-based subsidiary Extand Sistema was renamed GLS Spain in March and opened a new depot in Madrid at the start of April. At the same time, the group is now co-operating with Chronoexpress, a subsidiary of the Spanish post office Correos and the country’s third-largest parcels and express operator.
“The alternative to developing our own system would be to acquire or invest in a company that has already established itself nationally,” Back explained. “This option could not be realised at acceptable conditions.”
With around 1.1m parcels daily, GLS (General Logistics Systems) generated revenues of about EUR 1.3bn in the year ending 31 March 2005. The GLS network of subsidiaries and partner operators covers 34 European countries with 27 central transhipment points and 510 depots. In 2003-4 it made an improved profit of £25m (EUR 37m) on turnover of £818m (EUR1.2bn).
