Tag: Blue Dart

DHL Express (India) Pvt Ltd, in association with Blue Dart Aviation, is planning a direct link between Kolkata and Dhaka in a bid to compete with the unorganised express and logistics sector in SARRC countries. The new service is likely to become operational in approximately two months time.

The new route will reduce time and costs for DHL, for earlier the cargo would travel to Dhaka from Kolkata, via Singapore.

“Blue Dart Aviation would run a direct flight to Dhaka in two months time and this would help bringing down our cost by at least 20 per cent in addition to the transit time,” said Craig Grossgart, vice president, DHL Express (India) Pvt Ltd.

According to the company, the cost benefits would be passed on to the customers enabling a lower product cost. “Earlier we couldn’t compete with the unorganised nature of the sector in this part, but now we can compete with anybody, as the pricing would be more competitive,” Grossgart said.

Eventually, the company plans to venture into other SAARC nations, particularly Pakistan and Sri Lanka.

The new scheme is undergoing pilot tests and may be launched soon. Keeping these plans in mind the company has inaugurated a 16000 sq ft, new state-of art facility at Kolkata.

Meanwhile, Blue Dart will add one more Boeing 757 cargo aircraft to its fleet by the end of the year. Currently the company operates a fleet of seven aircraft, of which three are Boeing 737 and the other two Boeing 757s.

DHL Express holds a 81 per cent stake in the Chennai-based air cargo company.

DHL India is worried about getting hammered by an impending slowdown in certain sectors and the economic slump in the US.

Sectors such as textiles, apparel and leather have already shown a downturn in shipments.

“There has been a general slowdown which is not only because of rupee appreciation. However, the impact of the US recession will be indirect,” said Chandrakant Pitre, national marketing head, DHL Express India Pvt Ltd.

Pitre was in the city to inaugurate a 16,431-square-foot service centre, which will handle over 1,110 inbound and outbound shipments a day, weighing more than 1.3 tonnes.

Pitre said clients preferred the freight mode of delivery these days, which takes longer to deliver but costs less than the express mode, affecting the business of logistics firms.

However, DHL expects sectors such as pharma, auto, electronics and high-end products — all of which are on the upswing — to add to its coffers.

DHL will also rely on the presence of Blue Dart, in which it has an 81 per cent stake, to bolster its presence in the country.

According to industry estimates, the Indian logistics market is expected to reach USD 122 billion by 2015 from USD 45 billion now. Logistics costs in India are 13 per cent of its GDP compared with 11 per cent in Japan, 10 per cent in Europe and 9 per cent in the US.

DHL has invested around USD 300 million in the country in the past four years, including USD 163 million for an 81.03 per cent stake in Mumbai-based Blue Dart Express.