Deutsche Post Venture in Phillipines
BUSINESSWORLD (PHILIPPINES) 20th November 2001
GERMAN LOGISTICS FIRM INKS DEAL
German-based logistics service provider Deutsche Post World Net forged a joint-venture agreement with local transport group Royal Cargo Corp. (RCC) to provide logistics services for the country’s incoming and outgoing cargo. The German firm – owners of Danzas Intercontinental Group and also parcel express provider DHL International, Ltd. – sees good business opportunity in the country with the expected growth in the export sector in the middle of next year. The joint-venture company, Danzas AEI, Inc. – which is 70% owned by Deutsche Post and 30% RCC – is optimistic of the electronic sector’s growth, which would boost its airfreight volumes next year. “There has been a decline of about 23% of export volume for this year but we believe it is only temporary and will reverse itself next year. This country has a growth rate between 20% and 30% in the electronics market for the past year that is why we are thinking long term,” said RCC president Michael Raeuber in an interview with reporters. Mr. Raeuber will also serve as the joint venture’s chief executive officer. “We believe in this market and in this country, that is why we were able to convince (Deutsche Post) to invest here,” he added. On the partnership, Mr. Raeuber said both companies will benefit from the joint venture as RCC’s stable local infrastructure complements Danzas’ advanced technology in integrated logistics solution. However, RCC and Danzas officials declined to provide investment figures in the country. Danzas Intercontinental executive vice-president Renato Chiavi said Deutsche Post’s investment in the Philippines through the joint venture is the firm’s second biggest, since DHL. “(Danzas AEI) is a parallel product from a sister company that belongs to German (Deutsche) Post also,” said Mr. Chiavi. The firm’s operation in the Philippines will strengthen its hold in the North Pacific market, which covers Hong Kong, China, Japan, South Korea and Taiwan. Deutsche Post said its investment in the country is a strategic one as most of their clients have production lines located in Southeast Asia. Most of the firm’s clients are in the information technology (IT) industry, such as Intel, Compaq and Dell, which has production facilities in the country. Aside from Danzas AEI, Deutsche Post has acquired stakes in various logistics companies worldwide such as Dutch firm Nedlloyd, Sweden’s ASG, Yellowsone and Global Mail in the US, Guipuzcoana in Spain and the French firm Orgadis, among others. Copyright 2001 BusinessWorld (Philippines). Source: World Reporter (Trade Mark) – Asia Intelligence Wire
