elix partners Geodis and DFDS
In Frankfurt am Main, on April 25, 2002, the German elix European Logistix signed a cooperation agreement with Geodis (Paris! France) and DFDS Transport (Copenhagen/Denmark). The agreement provides for their exclusive cooperation with elix in groupage traffic between their respective territories and Germany. Geodis and DFDS have taken equity stakes in the elix partnership corresponding to the respective turnovers generated through elix-related contracts.
Geodis for France
Geodis Calberson, the largest subsidiary of the Geodis Group and the number one in this business on the French market, is to take care of the French end of all elix’s system-based groupage services, except in Eastern France and RhOneAlpes, territories which were already assigned to existing elix partners. Last year, Geodis Calberson had 9750 employees and 204 branches in France that generated sales of EUR 1.1. billion. The company only recently completed its national network by taking over FAT (Franco-Allemande de Transit), which has been established in the groupage trade between France and Germany for many years now.
DFDS for Scandinavia and UK/Ireland
The second new partner, DFDS Transport, is likewise the largest provider of groupage services in its territories — Scandinavia and UK/Ireland (annual sales amount to over EUR 2.6 billion worldwide). On behalf of the elix system, it takes over the management of groupage traffic in Denmark, Finland, Norway and Sweden as well as in the United Kingdom and Ireland. In these six countries DFDS employs 7900. According to Dr. Michael Bargl. executive director of elix, the existing elix partners in Belgium (WM Belgium NV, Boom) and in the Netherlands (WM van Straaten, Utrecht) will also cooperate with Geodis and DFDS Transport.
The combined annual turnover of Geodis, DFDS and the other elix members comes to EUR 4 billion (of which elix generates EUR 1.6 million, DFDS EUR 1.3 million, Geodis EUR 1.1 million). With a workforce of 28,700 based in 410 branches, the partners send out over 400 international truck runs with 1.77 million dispatches (over 30 kg) and offer a realistic alternative to the big players such as Schenker (turnover EUR 3.5 billion) and Danzas
(EUR 3.3 billion). Moreover, Bargi claims that elix's branch network is denser than those of its two largest competitors. This means that the elix system can offer delivery cycle times that are at least comparable with, and in many cases shorter than those offered by the competition.
Quality counts
After signing agreements with strong partners in Austria and Spain at the beginfling of the year. the conclusion of contracts with the largest French and Scandinavian groupage forwarders is an obvious step toward the completion of elix’s European network (see box on page 36). Bargl claims that uniform quality standards already apply across the newly expanded network with agreed cycle times, status reporting and a harmonised EDI-based communications architecture. The harmonisation programme is also set to embrace optimisation of routing/load factors—and further improvements to the common IT system such as on-line tracking & tracing.
The new number one
The newly expanded elix expects to handle 1.8 million groupage shipments per annum. The complementary regional strengths of the new partners will benefit all concerned. The two new partners have gained access to a comprehensive distribution/collection network in Germany, which is after all the number one trading
partner of both the Scandinavian countries and of France.
The new agreement relates exclusively to road carriage of groupage consignments to and from Germany. The FTL and LTL business is not included in its scope. Even so, it is only natural that the influence of the alliance will spill over into other areas. In real life, the boundary between LTL and groupage is a fluid one; moreover the two categories are defined differently in France and in Germany. And taking over a full truck load is always preferable to a half empty truck, let alone an empty run. FTL runs will of course not be coordinated by elix but directly by the individual partner.
Change is inevitable
When the new partnership was publicly announced in Frankfurt, it was clear that the impact of the agreement for three immediately involved parties — Geodis, DFDS and IDS (in Germany) will reach beyond its specified scope. The logical extension is that sooner or later Geodis and DFDS will also start to cooperate in direct bilateral traffic (that is not via Germany). The parties will have to extricate themselves from a number of existing relationships, and certainly enter new ones. A new round of musical chairs is to be expected in the industry like the one of a few years ago, where in a short period Danzas took over ASG and ABX bought up transport operators all over Europe.
In Europe
Belgium WM Belgium
Denmark DFDS Transport
Germany IDS FW. Neukirch
Finland DFDS Transport
France Geodis Calberson,
T.K., Transitas,
Fross, Konz
United Kingdom DFDS Transport
Ireland DFDS Transport
Luxembourg Lentz Logistics
Netherlands WM van Straaten
Norway DFDS Transport
Austria Transdanubia,TSG,
Scheffknecht
Sweden DFDS Transport
Switzerland BLG
Spain Spain-Tir
www.els-logistic.de
www.dfdstransport.com
www.geodis.com
Commercial Motor, 2/5/02
DFDS Goes East with ELIX Deal
Haulage giant DFDS TRansport has extended its coverage of Germany and Eastern Europe with the acquisition of a 33% shareholding in German logistics firm ELIX. The move will mean an extra 200 groupage trips a week between the UK and Germany.
Up to 15 British firms have lost out following the switch to DFDS including RH Freight, Davies Turner and Cavewood, the UK subsidiary of French firm Geodis. Ironically Geodis has just become another partner in the ELIX chain, having bought a 22% stake in the firm to handle loads between France, where DFDS has an operation, and Germany.
However, DFDS UK MD Rene Falch Olesen plays down any potential friction: ‘We do not see this as a conflict – rather it is an opportunity for us both.‘ He adds that the additional work will be absorbed into DFDS‘s current operation.
A spokesman for Geodis adds: ‘We are putting in place a new arrangement for our customers who will benefit from the great flexibility now offered to us. We are competitors with DFDS and this means we will rub shoulders with them from time to time.‘
