Deutsche Post World Net, Lufthansa: New Outsourcing Subsidiary

DPWN, Lufthansa: New Outsourcing Subsidiary
October 18, 2001 — “Deutsche Post World Net and Lufthansa Cargo AG have set up a new subsidiary under the name XPL to market complete logistics outsourcing services to major customers, Deutsche Post board member Peter Kruse said on Thursday. The new company was majority-owned by logistics division Danzas while DHL International, Deutsche Post Euro Express and Lufthansa Cargo shared the remaining ownership, he told Reuters in an interview at the German logistics congress in Berlin. Headed by Danzas business development director Mike Proffitt, XPL would offer so-called fourth-party logistics (4PL) solutions beyond mere transport services to large firms with complex logistics requirements, he said. This supply chain management company was an example of co-operation between the Deutsche Post group and Lufthansa Cargo under their strategic alliance signed last year, he added. Addressing a news conference earlier, Kruse, in charge of European express services, said Deutsche Post and air express firm DHL International, in which it holds 51 percent, were already increasing operational co-operation and would shortly consider how to cross-sell products of both the Deutsche Post Euro Express parcels network and DHL Worldwide Express services. The DHL European overland service Europolitan, for example, had used the Deutsche Post Euro Express network since this September, he added.”

The article states: “On potential expansion of the Euro Express network, Kruse said Deutsche Post would be interested in acquiring the remaining 50 percent stake held by Britain’s Securicor plc in their 50-50 joint venture Securicor Omega Express but this would not be possible until 2004 due to commitments by Securicor not to make major structural changes before then. Deutsche Post also planned to harmonise Euro Express parcel products beyond the existing EuroPack product for single parcels and EuroPremium for several parcels or pallets with a ‘time-certain’ service with guaranteed delivery times and a pan-European B2C product in 2002, Kruse said. Deutsche Post Euro Express, the European parcels market leader with an 11 percent share and sales of some six billion euros last year, aimed to grow to turnover of some 10 billion euros in the medium-term, he added without giving more details. After a ‘lively’ first half-year in 2001, growth had slowed in the second-half and some markets were stagnating, but the unit remained on target for overall growth this year, Kruse said. A new company, Deutsche Post Euro Express Deutschland, would be set up on January 1, 2002, to buy in transport capacity from the Deutsche Post group and market the Euro Express services in Germany in line with an European Commission decision forcing the post office to clearly separate parcels and letters activities in Germany, he added.” (Source: Reuters)