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Deutsche Post's DHL to restructure India jv to hold majority stake
Deutsche Post AG’s DHL plans to restructure its joint venture with Lemuir Group in India, paving the way for it to hold the majority stake in the venture, the Economic Times reported.
After the restructuring, DHL will hold a 76 pct stake in the new company, DHL Lemuir Logistics Private Ltd, while Lemuir will hold the balance 24 pct stake.
Lemuir’s new promoters have agreed for a cash exit option for their reduced stake. In the previous joint venture, DHL Danzas & Lemuir, DHL and Lemuir had a 49 pct and 51 pct stake respectively, the paper said.
According to the paper, though negotiations have successfully concluded, certain legal formalities have to be completed and an announcement is expected in the coming few weeks.
The global logistics major also plans to enter the container freight station business, the report added.
Read MoreUPS plans air hub in China
United Parcel Service, the world’s largest package-delivery company, will spend an initial USD20 million to build a new hub in Shanghai to raise air deliveries in China.
The hub, to be located at Shanghai Pudong International Airport, is to start operating in 2008, according to an agreement UPS signed with Shanghai Airport Group on Thursday.
The hub aims to serve a logistics market that grew 14 percent last year, spurring UPS and other overseas companies to add facilities. UPS has invested USD600 million in China in the past five years and now ships to more than 330 cities in the country with 4,500 employees.
”We will continue to make appropriate investment in China to meet our customers’ demand,” said Ken Torok, president of UPS Asia Pacific. ”This new international air hub is a critical milestone in our goal to maximize our air network infrastructure in this country.”
UPS in August opened its first two retail centers in mainland China. The company, based in Atlanta flies Boeing MD-11s and 747s to China and plans to add more 747s. The hub will be serviced by eight 747-400s.
The Chinese logistics market grew to 3.84 trillion yuan, or USD500 billion, last year, according to the Chinese government. The Chinese domestic air cargo market grew 28 percent to 21.3 billion yuan, the planning agency said March 15.
The new hub is designed to handle 17,000 items an hour by 2012, in a 96,000-square-meter, or one-million-square-foot, facility with plans for ”rapid expansion,” UPS said. The hub could employ more than 1,000 people by 2010.
Deutsche Post’s DHL Global Forwarding said Jan. 26 that it had become the first overseas company to offer domestic airfreight forwarding in China. It will initially offer services in 17 cities, a number that may rise to 70 within five years, it said.
Read MoreUPS and Shanghai Announce first-ever U.S. Air Hub in China
UPS and the Shanghai Airport Authority conducted a formal signing ceremony in another step toward construction of the UPS International Air Hub at Pudong International Airport in Shanghai. Presiding over the ceremony were U.S. Transportation Secretary Mary Peters and Vice Mayor of Shanghai Yang Xiong.
The UPS International Air Hub, scheduled to open next year, will be the first constructed by a U.S. carrier and will link all of China via Shanghai to UPS’s international network with direct service to the Americas, Europe and Asia. It also will connect points served in China by UPS through a dedicated service provided by Yangtze River Express, a Chinese all-cargo airline.
The establishment of the UPS International Air Hub is a significant step in making the Shanghai Airport an international cargo hub, promoting the development of the Shanghai transportation center and upgrading the service functions of the city of Shanghai. Under the 2004 Air Services agreement, UPS will find it easier to expand its international and Chinese networks in the future while immediately gaining new flexibility in the way it schedules its flights now.
The hub project is the latest in a series of strategic initiatives to expand UPS’s operations and brand presence in China. In 2005, the company took direct control of its operations, serving more than 330 cities in China representing 85 percent of the country’s international trade activity. UPS also expanded its air operations in China throughout 2006 and now flies to more points in China than any other U.S. airline, freight or passenger. The company has grown its China workforce to more than 4,500 employees while also constructing a large logistics infrastructure that includes more than 60 distribution centers.
Read MoreDHL India to launch time-bound delivery for US
DHL will start booking Indian consignments for the US from April 15 under its time-bound delivery scheme.
“In India, the time definite delivery (TDD) service to the US will be on offer starting from April 15,” DHL said in a statement after USA was added into the TDD scheme.
The scheme was earlier available only for Asia-Pacific, Europe and Middle East.
The TDD service, currently available in Mumbai, Delhi, Chennai and Bangalore would be extended to Hyderabad by this month-end, while DHL plans to cover other cities like Pune, Jaipur and Kolkata in a phased manner.
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