Author: Archive

FedEx Express opens China region headquarters in Shanghai

Posted by | Dec 3, 2004 | |

FedEx Express formally opened its China region headquarters in Shanghai on November 17, 2004 to integrate its all business in the country under uniform management.

FedEx Express, a subsidiary of FedEx Corporation of the US, has stressed for times that it has no plan to operate the express business in China solely. However, the establishment of the new regional headquarters is likely a sign that FedEx Express will take more aggressive action in China, especially when the Chinese government will fully open up its logistics market to foreigners. According to China’s Commitments to the World Trade Organisation member, no foreign investors that are allowed to operate wholly owned logistics company in China until December 11, 2005. At present, the foreigner has to enter the market by setting up a Sino-foreign joint venture and is forbidden to gain a controlling stake in it.

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German publishers to compete with Deutsche Post

Posted by | Dec 3, 2004 | |

According to reports, German publishing groups Axel Springer and Georg von Holtzbrink signed contracts last week regarding the acquisition of a majority in Pin, a German company that provides postal services. Each of the two publishing companies acquired a stake of 30 per cent in Pin, although the groups hope to later increase their combined stake to 75 per cent. The supervisory board of Springer have yet to approve the deal. In acquiring the stake, the companies are hoping to build up a service to rival that of Deutsche Post, the German postal services operator. The monopoly that this company currently has on the market for the delivery of letters is due to come to an end in 2007.

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French competition authority reduces La Poste fine

Posted by | Dec 3, 2004 | |

The French competition authority, Conseil de la Concurrence, has reduced by 90 per cent the fine imposed on the French post office, La Poste, for anti-competitive practices. The regulator has decided that La Poste, which was found guilty of thwarting competition by granting discounts to corporate customers, should pay a smaller fine because it has agreed to change its practices.

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UBS Airfreight Survey 04

Posted by | Dec 2, 2004 | |

Views on FedEx, DHL & UPS from traffic managers at US Fortune 500 companies
Executive Summary 3
— Investment Conclusions
P:LibraryUBS AirFreight Survey Dec04.pdf

Customer Relationships 7
— Established Relationships
— Product Usage
— Cross-Selling Success Rate
— Supply Chain and Logistics Relationships
Scorecard 12
— Reliability and Dependability
— Price
— Ease of Doing Business
— Value for Money
Topics of Interest 27
— Who is the Most Aggressive on Price?
— Likelihood of a Price War
— UPS Ground Market Share
— Effectiveness of DHL’s U.S. Ad Campaign
— DHL Service Quality Post-Airborne Acquisition
— DHL Share Post-Acquisition and 2005 Outlook
— Will DHL Be a Major Threat Beyond 2005
— What Does DHL Need to Do?

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UPS plans major investment in China after ending Sinotrans pact

Posted by | Dec 2, 2004 | |

United Parcel Service Inc plans major investments in China’s fast-growing parcel delivery market as it prepares to part company with its long-time partner Sinotrans, UPS Asia Pacific president Ken Torok said.

UPS, which is paying Sinotrans USD100m to end its relationship, will add 500 more UPS vehicles by December 2006 and build an aviation hub in Shanghai by 2007.

‘We will greatly increase investment in China,’ he said without giving details.

Under the agreement, UPS will take direct control over agency operations from Sinotrans in five major cities by January. It will then add another 18 locations which cover over 200 cities by the end of next year.

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DHL announces USD20m investment in Brazilian operation

Posted by | Dec 2, 2004 | |

The express delivery services company DHL has announced investments of USD20m in its Brazilian operation in 2005. The amount will be split in equal parts in infrastructure and development of systems. The goal of the company that has 156 selling points in the country (40 owned ones) is to reach 400 points by the end of the year – 280 (70percent) owned ones. In Brazil, the company is represented by DHL Express, DHL Solutions (logistic operator) and DHL Danzas Air & Ocean (air and water transportation services).

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UPS to acquire direct control of express operations in China’s major cities

Posted by | Dec 2, 2004 | |

UPS today announced an agreement with Sinotrans to take direct control of its international express operations in China’s largest and most important cities by the end of 2005. The agreement, signed on Dec 1, requires a payment of USD100 million by UPS for the transfer of operations in 23 cities across China. Operations in those 23 business centers extend service to an additional 200 cities, which account for more than 80 percent of China’s gross domestic product. Starting in January of 2005, UPS will take direct control of operations in five locations: Shanghai, Guangzhou, Shenzhen, Tianjin and Qingdao. By December 2005, UPS will assume control over its express operations in 18 additional locations, and have a total of 1,700 employees.

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