Tag: Courier/Express/Parcels

UPS selling Sinotrans stake for HKD 462.5m

Posted by | Jun 28, 2007 | |

United Parcel Service has offered to sell its entire stake in Sinotrans for as much as HKD 462.48 million, further cutting its ties with the mainland courier service provider after buying out their express delivery joint venture in 2005.

UPS was selling 124.65 million Sinotrans shares at between HKD 3.56 and HKD 3.71 each, a 2 per cent to 6 per cent discount to the stock’s closing price of HKD 3.79 yesterday, according to a term sheet sent to fund managers.

The shares represent 7 per cent of the Beijing company’s issued H shares or 2.9 per cent of its total issued share capital. Citigroup was the sale arranger.

UPS, one of the world’s leading package delivery companies, bought the stake when Sinotrans went public in February 2003.

The two companies parted ways in 2005 when UPS paid USD 100 million to buy Sinotrans’ 50 per cent stake in their venture after Beijing opened the market to foreign firms under its World Trade Organisation accession commitments.

Sinotrans also has a venture with Deutsche Post, the parent company of DHL, which raised its stake in the mainland firm to 13.3 per cent from 11.3 per cent in December 2005.

The company formed an express airline joint venture this year with Korean Air Lines, the world’s largest international air cargo carrier, to tap the mainland’s growing exports.

Sinotrans, the listed flagship of state-owned China National Foreign Trade Transportation (Group), saw its net profit drop 28 per cent to 618.8 million yuan last year due to declining freight rates.

Shares of Sinotrans fell 3.81 per cent yesterday, closing at HKD 3.79. The stock had surged 22 per cent over the past three months on speculation its parent would inject more assets into the firm and eventually list the entire group.

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FedEx Domestic Time-Definite Service takes off in China

Posted by | Jun 28, 2007 | |

FedEx Express has now made its iconic next-business-day service available to customers throughout China. Since FedEx began its next-business-day service on 28 May, coverage has expanded from 19 to more than 30 cities, while 48-hour day-definite service is offered in more than 200 cities and counties. As a result of increasing customer demand, the number of cities being served continues to expand rapidly.

“Businesses in China have been waiting for FedEx to make this time-definite service available,” said David L. Cunningham, Jr., president, Asia Pacific, FedEx Express. “We have seen healthy and encouraging demand from our existing international customers and potential new customers. Since we began operations less than a month ago, thousands of domestic express packages have already passed through our hub in Hangzhou.”

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Precision Conversions Receives 757-200PCF Order from DHL

Posted by | Jun 28, 2007 | |

Precision Conversions, LLC (Precision) is pleased to announce that the company has received an award to provide DHL with their first full 15-pallet position 757-200PCF. The Rolls-Royce powered, ex-VIM Airlines aircraft (MSN 27598) will commence modification at the Flightstar Aircraft Services facility in Jacksonville, Florida this week and will be re-delivered in October, 2007. The aircraft is owned by DHL’s European Air Transport, but is expected to be operated by Blue Dart Aviation based in Chennai, India.

DHL’s Airline Director, Gordon Olafson, said that, “The Precision Conversions 757-200PCF, with its weight enhancements, is the right product at the right time to support our expanding global operations, especially in India.”

Precision Conversions has re-delivered 12 conversions to date and currently has 2 aircraft in work. The company holds 6 firm orders and contracts on more than 47 options for its 757-200PCF conversion.

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Astar Air wants to buy ABX Air

Posted by | Jun 28, 2007 | |

Miami’s Astar Air Cargo Holdings is seeking to enter into negotiations to acquire ABX Air, an Ohio-based cargo airline that claims Plantation-based DHL as its largest customer.

In a letter to ABX’s board Thursday, Astar boss John Dasburg said it was prepared to offer USD 7.75 per share for all of the outstanding ABX shares. ABX reported nearly 58.7 million shares outstanding as of last month, which would put Astar’s offer at about USD 454 million.

The offer comes about two weeks after DHL acquired a 49 percent equity interest and a 24.9 percent voting interest in Astar.

ABX’s shares soared 85 cents to USD 8.08 in early afternoon trading.

ABX was an affiliate of Airborne but was spun off to Airborne’s shareholders after DHL acquired Airborne’s ground operations for USD 1.05 billion in 2003. Federal rules restrict foreign ownership of U.S. airlines. DHL is an arm of Germany’s Deutsche Post.

Dasburg and an investor group acquired Astar four years ago when the airline was known as DHL Airways. The group paid USD 57 million for the airline.

“Mr. Dasburg and the ownership team have always wanted to own both carrier operations,” said Elliott Seiden, a lawyer representing Astar. “They made a proposal to DHL to buy both airlines back in 2003.”

Dasburg believes operating both Astar and ABX under one management team will create operational efficiencies, Seiden said.

ABX has received Astar’s offer and is evaluating it with advisors.

The smaller Astar has a fleet of 45 aircraft and 1,100 employees. ABX, by comparison, has about 100 aircraft and more than 6,100 full-time employees.

DHL has accounted for virtually all of ABX’s cargo in recent years, ABX reported in a regulator filing. ABX generated USD 90 million in net earnings on USD 1.26 billion in 2006. Astar is privately held.

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Amtrak Aims to Double International Business

Posted by | Jun 27, 2007 | |

Amtrak, a leader in the UK express and home delivery market, expects to double its international business in the next twelve months.

“We have offered a fast, reliable and cost-effective international service for years, but surveys show that most people associate us with UK deliveries only,” says Managing Director Alan Jones. “So we need to ensure that both existing and potential customers understand our full range of service offerings.”

Amtrak gained significant new expertise when appointing Kelvin Yorath as General Manager of International Services. With over thirty years in the international market, he has spent the last 18 months overseeing Amtrak’s new global services including the introduction of easy to use tariffs, clarity of billing, strong network partnerships as well as the upgrade of IT systems to allow on-line booking, track/trace and POD information.

“It has been quite a challenge, introducing the improvements and ensuring that customers are aware of them, but we are adding new international customers every day now,” Kelvin Yorath says.

“Our customers are serviced in the UK by our 75 strategically located local depots and two national hub locations. It has never been easier to send a document, parcel or pallet to any destination worldwide with Amtrak.”

Amtrak offers four strategic International services:
Airtrak – worldwide air express for delivery of documents, parcels and freight
Roadtrak – European single and multi-parcel delivery service
Palletrak – European single and multi-pallet delivery service
Global Response Services – dedicated vehicles, part/full load, world mail, sea freight, and logistics.

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