DHL Czech Republic building a new network of terminals

Forwarding company DHL Express (Czech Republic) is building a new network of terminals throughout the country to meet the growing demand for freight and logistic services and to optimize its logistics system.

The completion of the Kè 1 billion (EUR 35.4 million) project creating a network of eight main terminals – by the end of 2009, is expected to save the company between 10 and 15 percent in costs, said Jiøí Stojar, the company’s managing director. In addition, because of improved interconnections, the company anticipates higher revenues and bigger market share. In the segment of packages, DHL Express expects to grow its current share from 25 percent to 30-32 percent; and in products above 31.5 kilograms from 8 to about 19 percent, and it hopes to at least maintain its 46 percent share in express air delivery services, Stojar said.

This year DHL Express CR (together with DHL Freight, which is part of the firm) revenues are expected to reach EUR 185 million, about 15 percent growth compared to 2006.

The project, which will create the backbone of an updated distribution system, is almost half-completed with existing terminals in Brno, South Moravia, Èeské Budìjovice, South Bohemia, and Plzeò, West Bohemia. The Teplice, North Bohemia-based terminal, which is under construction, will be completed by the end of August, Stojar said, adding that the construction of a transshipment station in Hradec Králové, East Bohemia, has been delayed and the firm plans to finish it in the second quarter of next year. In 2008 the Prague and Olomouc, Central Moravia, terminals are scheduled to be built. The last two terminals will be built in 2009 in Ostrava, North Moravia, and another in the capital, Stojar said.

The project was approved three years ago but was delayed due to DHL’s acquisition of package delivery company PPL CZ in 2005. DHL is doing the project in the partnership with PPL to integrate both companies’ distribution networks.

DHL Express (Czech Republic), which deals with express and parcels services, is a division of DHL. The express and logistics giant has been operating on the Czech market since 1986.