German military to privatise logistics, has approached DHL

Germany’s military is planning to privatise its logistics operations and has approached Deutsche Post World Net AG’s DHL about the matter, Handelsblatt newspaper reported, citing Ulrich Horsmann, head of the military’s procurement office, and a spokeswoman for DHL.

‘We were approached by the military, which asked us to work out some ideas on the matter,’ the spokeswoman for DHL said, but added there are currently no ongoing talks.

The newspaper cited industry sources as saying DHL is likely the only serious candidate for such a major project, especially as United Parcel Service already handles the US military’s logistics.

Horsmann said the German government may put out an initial 800 mln eur tender by the second half of 2006, which may result in 250 mln eur annual cost savings. Germany’s military spends about 3 bln eur per year on logistics.

The military’s privatisation plans include 190 depots, warehouses and distribution centres.