Hub network leads DFDS into Europe
DSV-owned road transport company DFDS Transport has revealed that it intends to expand its European coverage by establishing a series of new distribution hubs on the continent. A new depot is also set to be opened in Detroit later this month.
Presenting the company’s annual results last week, MD Jens Nielsen declined to reveal where the depots would be located, but promised an announcement this week.
“Our business is traditionally associated with being the market leader for road transport to and from Scandinavia, ” he said.
“We are extremely proud of this strength, but it is now only part of our international multimodal capability and this increased service offering is driving our business expansion.
“We believe in developing a strategic approach to certain goods and areas and the expansion in Europe is part of this strategy.” A profit of £3.4m ( t5.5m), up 193% on 2000, was achieved on turnover of £283m ( t461m).
Nielsen added that road transport accounted for 48% of group revenues, and consignments were projected to exceed 1m by 2003 from 800,000 this year. The growth target for 2002 is a more modest 5%.
“During the year, DFDS Transport successfully gained new business from a number of customers, including Reebok Fitness Equipment, Velux Windows, Netto and DD&V Dresden, ” said Nielsen.
“We also attracted new logistics contracts in Ireland, notably Penneys.” The Netto supermarket chain is owned by Maersk, which boasts its own logistics division.
Nielsen also hinted that DFDS might move from its position as a transport provider and towards offering thirdparty logistics solutions.
“In the past we have focused on carrying everything on our own assets. Do we need to be the physical carrier of everything? Not really.”
Posted: 15/04/200
IFW
