PostNord merges DPD Denmark franchise with Post Danmark

Nordic postal operator PostNord is continuing its restructuring plans with the merging of its DPD Denmark franchise into its Post Danmark business. The Swedish-based company said the merger would come into force on 25th June, and should see DPD Denmark sites closed, with staff transferred to Post Danmark.

PostNord has had franchise rights for the DPD parcel delivery brand in the Nordic region since 2001, at the time through Sweden’s Posten AB. DPD is part of the GeoPost Group, which is owned by France’s La Poste.

But the Nordic company said merging its DPD Denmark operations with Post Danmark would create a stronger production flow for the package business in Denmark, a parcel market that has experienced challenging trading conditions because of a weak national economy and “intense” competition.

PostNord said its use of the DPD brand, and offering of DPD products, would remain unchanged in the Danish market, with customers likely to find their packages collected or delivered with vehicles either sporting the DPD brand or that of Post Danmark.

Carsten Dalbo, head of logistics at Post Danmark, said: “The Danish logistics market is characterised by intense competition, but with this merger we will now have the kind of scale benefits we have gained in the whole PostNord Group.”

“By collecting packages in a single production flow, we can manage larger parcel volumes in fewer package centres, and adopt a more efficient use of our vehicles – which brings environmental benefits,” added Dalbo.

Merger

DPD Denmark package activities will now take place in Post Danmark’s distribution centres, and in the state-of-the-art processing centres in Brondby and Taulov.

The DPD Denmark terminal in Kolding is likely to be used as a transit point and sorting centre for growing volumes of international parcels to and from the rest of the DPD network.

“The merger means we will terminate the contract with truckers that has been running for DPD, and instead Post Danmark’s drivers will handle transportation. Employees from DPD Denmark terminals and depots will be transferred to the Post Danmark business,” said Dalbo.

PostNord said it continued to have an agreement to work closely with the rest of the DPD network “many years into the future”. The company owns DPD Norway and runs the DPD franchise in Sweden.

The DPD network operates in 42 countries and handles around 2m packages a day.