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GLS reports positive results (NL)

General Logistics Systems B.V. (GLS), Amsterdam, reported its 2007/08 results with strong sales and volume increases and profits in line with expectations.
GLS increased its sales to 1.75 billion euros – an increase of 9.2 per cent. The number of parcels handled totalled 335 million, representing a new record. EBITA at 172 million euros was in line with expectations.
GLS invested approximately 47 million euros in capital expenditure in 2007/08. In addition to France and Romania, new hubs and depots were opened in Austria and Poland; and additional franchise depots were acquired in Italy. The integration of GLS Belgium Distribution (formerly ABX BELGIUM Distribution) into the GLS system is also progressing as planned.
In 2008/09, GLS is planning network investments totalling 94 million euros – with significant investments in Germany, Poland, the Netherlands and France. The focus will be on rolling out industrial parcel production processes throughout the network as well as implementing new solutions for the “last mile” in B2C business. Other priorities will be the expansion of the GLS national and international express product offering, and GLS will continue to pursue global partnerships such as the recent cooperation agreement with Gati Ltd. in India.
GLS is expecting the European CEP market to grow at a moderate rate of ca. 3.5 per cent. In its international business, GLS Group is planning double-digit growth rates.

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Seur franchise owners reportedly ready to sell

A group of Seur franchise owners is ready to sell their holdings which add to up to a majority stake in the leading Spanish parcels company, according to media reports. DHL, UPS and investment funds are reportedly interested but existing shareholders, including GeoPost, have the right to outbid them.

The group of franchisees represents 52 pct of the capital of the parent company, Seur SA, 65pct of the franchises by number, and generate 56 pct of gross profits, Spanish newspapers Expansión and El Mundo reported. The regional operators have jointly commissioned investment bank Arcano to seek offers for their shareholdings. International equity funds and multinationals such as DHL and UPS are interested parties, Expansión wrote.

The express parcels group has a complex, decentralised ownership structure comprising regional franchisees who also own small stakes in the parent company Seur SA. Seur has 85 franchisees in total controlled by 54 companies. More than 75pct of these owners are among the prospective sellers, according to the newspapers.

The largest single shareholder is GeoPost, the French La Poste subsidiary, which has built up a 19.6 pct stake in the parent company in recent years by gradually acquiring individual franchisees through the joint venture Seur-GeoPost.

In a company statement, Seur reiterated that the right of first refusal on any shareholder shares being sold meant that it would have preference over any outsider buyer as long as it matched their offer. The head office had not been officially informed by any shareholder that it wanted to sell its holding, it added.

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GO! inaugurates high-performance hub in Central Germany

GO! Express & Logistics has inaugurated its new EUR 7 million sorting centre in Niederaula, Central Germany, giving it sufficient capacity for the next 10-15 years.

The 30,000 sqm facility includes a 3,600 sqm handling terminal with a completely automatic sorting system. Capacity has been increased from 3,800 parcels per hour to 6,000 parcels in the initial phase and can be expanded to 13,000 parcels as required.

The high-performance sorter of the central hub, which was installed by the Dutch company Van Riet Material Handling System, handles all the package information via a central volume, weighing and scanning system.

GO! managing director Ralf-Hans Dierks said that the new hub provides sufficient capacity for the coming 10 to 15 years. The whole facility can be expanded through additional sorters and has been built with space for future expansion. The company’s previous hub was in nearby Neuenstein.

GO!, owned by 15 regional companies, said it has been well-positioned in the German domestic express market for the last 24 years thanks to high quality and personal service for its customers. With 1,400 staff and 3,000 couriers, it now has over 100 stations in Germany and Europe. In 2007, it transported 2.7 million shipments.

Dierks said that in order to strengthen its position in the European market the company plans to continuously expand its international network through strategic partnerships. Earlier this year, GO! entered a partnership with the Danish express company 3D, De Daglige Distributorer.

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Bahwan DHL Exel Supply Chain promotes safe driving in Oman

Bahwan DHL Exel Supply Chain (ESC) has recently embarked on the sultanate’s first ever safe driving campaign aimed at owner, drivers in the oil and gas field.

In addition to focusing on educating employees on responsible driving, the CSR program also helps to maintain sustainable local employment, according to Wayne Tait, Health, Safety & Environment Manager, Bahwan DHL Exel Supply Chain.

Statistics indicate that each year there are around 10,000 car accidents in Oman resulting in 680 deaths and 7,550 injuries. The causes of these crashes include speed, driver neglect, tiredness, overtaking, weather, sudden stops, safe distance, improper acts, vehicle condition, road condition, and cell phone use. Oman’s road traffic death rate is 28 per 100,000 of the population, which is much higher than the global average of 19 killed per 100,000 and according to Tait, anything the company can do to help reverse this worrying trend will be at the forefront of its agenda.

A component part of this effort will be a monthly competition to help to incentivize employees to maintain high levels of safety both in their driving practices and vehicle maintenance. The first monthly winner of the competition was Mahmoud Hilal Ali Al Qarni who took the first prize cash award of RO100 with a 99.6 pct rating for the month of April. The six month long campaign will culminate with the announcement of the ‘Driver of the Year’ award in October 2008.

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FedEx expects to win market share from Deutsche Post's DHL in the U.S.

FedEx Corp expects to win substantial market share from Deutsche Post World Net AG. Express unit DHL in the United States after its German peer decided to quit air-freight shipments and cut down on its ground capacities.

‘We really act on the assumption that customers will feel it when DHL scraps a third of its network,’ Michael Muehlberger, deputy head of FedEx’s Central and Eastern European operations told Financial Times Deutschland.

FedEx holds some 30 percent market share in the U.S. express market, compared with DHL’s 6 percent, according to estimates.

DHL’s loss-making U.S. operations are to tie up in domestic and international airfreight shipments with United Parcel Service Inc.

It will also reduce excess capacities of its U.S. express ground infrastructure by some 30 percent to adapt it to shipment volumes, and will expand cooperation with the U.S. Postal Service in sparsely-populated areas.

Muehlberger confirmed FedEx was in talks with Deutsche Post over a possible tie-up, but declined to provide details on why talks failed.

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U.S. Postal Service Awards Rivermine Telecom Expense Management Contract

The U.S. Postal Service has awarded Rivermine, the leading provider of automated telecom expense management (TEM) solutions, a contract to deploy comprehensive TEM solutions for its entire data network nationwide. Rivermine will deliver its patent-pending solutions to automate the U.S. Postal Service’s existing TEM processes. Rivermine helps organizations manage and optimize the full telecom life cycle including procurement and order management, invoice processing and auditing, inventory management, dispute management and reporting/analytics.
The Rivermine solution will be used to help maintain a data network connecting approximately 400 distribution outlets and 37,000 retail locations. The U.S. Postal Service joins more than 225 companies and major government agencies that have also selected Rivermine.

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Polish Postal Service Brought To Standstill By Strike

Poczta Polska, the Polish postal service, has ground to a standstill after postal workers began strike action yesterday.The Solidarity Union has been demanding a wage rise of 160 euros but management say 90 euros is the best they can offer without destabilising the postal service and that the union-proposed rise was out of the question.

20,000 distribution workers are thought to be involved in the strike.

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Post Office Network must be sustainable warns The National Federation of Subpostmasters (UK)

The National Federation of Subpostmasters says it welcomes a report from the Business & Enterprise Committee which acknowledges the threat to the post office network if subpostmasters lose the right to handle state pensions and benefits.

The Committee’s report on the future of the post office network backs claims by the NFSP that the loss of the Post Office Card Account (POCA) would have a devastating impact.

The Federation has warned that up to 3,000 post offices could be forced to shut if the contract to run the successor to the current POCA contract is lost. A decision on who has won the POCA 2 tender is expected this summer.

Of the 24 million visits made to post offices every week, 6.5 million are made by POCA customers, highlighting the importance of the POCA contract to subpostmasters.

The NFSP also backs concerns raised by the Committee on the threat to the post office network from proposals to break up Royal Mail Group.

With income from Royal Mail transactions making up the largest part of subpostmasters pay, the Federation is concerned about the effect this break up would have on this vital source of income.

In addition, the NFSP supports the Committee’s demand for the need to safeguard against further post office closures after Network Change.

The Federation has reluctantly accepted the closure of up to 2,500 post offices under Network Change in order to achieve a viable network, but states that there should be no further closures.

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