Kenya to host DHL’s new cargo division
Courier giant DHL Worldwide has established a new division that will cater for cargo.
DHL Danzas Air and Ocean will operate in Equatorial Africa with Kenya as its regional base.
The freight services will operate separately from DHL Express, the courier wing of the company. “Some things will change but for the better,” says John Cockayne, Danzas area general manager. “With the new development, our customers will now benefit from a better choice of products and services.”
Kenya was picked as the base for the region that covers Uganda, Tanzania, Senegal, Ghana, Cote d’Ivoire, Cameroon, Zambia and Angola. Other countries that are also covered in the circuit include, Mauritius, Gabon, Reunion, Madagascar and the Congo.
According to Mr Cockayne, Danzas will offer freight cargo services for air and sea and operate in 66 countries in sub-Saharan Africa where DHL Express has a presence.
The three DHL subsidiaries operate in South Africa, Kenya and Nigeria.
Export commodities to be freighted from the region include tea, coffee, horticultural produce, fish, petroleum products and cement. Import commodities will include machinery and transportation equipment, petroleum products, motor vehicles, iron and steel, resins and plastics.
Africa’s courier industry is facing a boom as foreign investment leads to increased communication between the continent and the rest of the world. Better economic performance in various African countries has spurred business activity and inter-connectivity between nations.
According to the Communication Commission of Kenya, the postal and courier industry generated Ksh14.4 billion ($185 million) in 2003. The growth has been projected to reach Ksh30 billion ($375 million) in the next five years.
There are more than 200 licensed and unlicensed postal and courier operators in Kenya. They include transporters and freighters that handle documents and parcels.
Much of Africa is difficult to cover by road due to the poor roadworks. Couriers are forced to travel on foot in many built up areas to reach their destinations. In many countries, the postal system is slow and expensive, and cannot be trusted for business purposes. Courier services have, therefore, become a practical solution for sending business mail.
To meet the demands of over 4.2 million customers worldwide, DHL’s international network links more than 220 countries and territories. On the ground, 75,000 vehicles service more than 120,000 destinations.
With annual revenues of nearly 22 billion euros ($26.2 billion) in 2003, DHL is the global leader of the international express and logistics industry. It is owned 100 per cent by Deutsche Post World Net.
