Tag: Deutsche Bahn

Schenker Nixes China Cargo Flap

German cargo giant Schenker, a unit of the German national rail service Deutsche Bahn, responded Monday to the Chinese government’s claims that Schenker has been operating without the necessary licenses or that the licenses were forged, as baseless.

On Friday August 10 (updated Sunday August 12) FlyingTypers carried an exclusive story ‘Schenker China Cargo Uproar,’ revealing a document released in China by the Ministry of Commerce that stated that an official investigation was underway of BAX Global International Limited, Schenker China Limited, of operating with a falsified Non Vessel Operating Common Carrier (NVOCC) license.

Such claims or the shutdown of Shenker operations in the region could have had huge effects on the cargo industry worldwide.

Schenker released the following statement on the matter Monday morning, August 13:
“Schenker AG is a registered NVOCC in China under a confirmed listing and is shown at the official website accordingly. In the past further branches have been registered under Schenker China Ltd. Unfortunately during the registration a discrepancy occurred and we are in contact with all respective parties to clarify the matter.

Schenker saw revenues in Asia almost triple in 2006, compared to 2005, to over EUR2.1 billion, according to a Schenker Web page. The company also more than doubled the number of employees in Asia in 2006 to nearly 11,000.

But the transportation specialist also emphasized earlier (agreeing with Mr. Kroger) that the Schenker situation may just be one more example of “business as usual” in China.
“There are other companies that do not comply with Article 27 of the China Ministry Of Commerce (MOC) regulations.”

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DB subsidiary Schenker plans takeover of Spain-TIR

DB subsidiary Schenker is planning to acquire 100 percent of the Spanish logistics group Spain-TIR. An agreement to this effect was signed with the shareholders today. Subject to regulatory approval this acquisition will enable Schenker to further expand its European land transport network. The planned takeover of a leading provider of land transport services will be a major step forward for Schenker on the Iberian Peninsula. Schenker is currently represented by a country organization in both Spain and Portugal.

“With the acquisition of Spain-TIR, we are consolidating our network in a European growth region that has great potential,” said Dr. Norbert Bensel, Chairman of the Transportation and Logistics Division of Deutsche Bahn AG. “We can offer our customers on the Iberian Peninsula all modes of transport including rail from a single source, plus direct access to our global network.”

“Spain-TIR has an extensive network in Spain and Portugal that is an ideal supplement to our own European land transport network, added Hans-Jörg Hager, Member of the Management Board of Schenker AG, and responsible for European land transport. “More presence means greater proximity to the customer. And together we can offer even better services to the customers of both companies.“

Lluis Gay Mundó, the chief negotiator for the Spain-TIR Group and one of the shareholders, said: “In around 30 years, Spain-TIR has developed into one of the leading providers of land transport services in Spain and Portugal. All customers will now have direct access to Schenker’s global network. I am convinced that the two companies are well matched and that customers will all benefit from this move.“ Lluis Gay Mundó will also be actively involved in the integration period in the company.
The corporate management and employees of the Spain-TIR Group will be fully integrated into the Schenker AG organization.

Spain-TIR has its own network on the Iberian Peninsula, consisting of 19 branch offices – 16 of which are located in Spain and three in Portugal – a storage area of 92,000 square meters, plus 46 franchisees. The company, which operates in the field of general cargo, direct services and logistics, has a workforce of over 800 employees and last year generated revenues of around EUR 200 million.

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Germany rethinks board structure after corruption scandals

Under German law, companies are required to give as many as half of their supervisory board seats to labor representatives. That increasingly appears to be leading to conflicts of interest and bribery in corporate Germany, because executives need a board’s support to keep their jobs and carry out strategies.

Nowhere in Europe are the ties between labor and management so close.
Germany requires any company with more than 2,000 employees to grant half its board seats to labor.

Its advocates say that the consensus-driven corporate culture helped the country emerge from the devastating effects of hyperinflation and two world wars over the last century to become a powerhouse in the global economy.
But German media are beginning to point to questionable practices between labor representatives and management at other German companies, such as Deutsche Bahn and Deutsche Post.

At Deutsche Post World Net, the German postal company and operator of the DHL express delivery service, the chief executive, Klaus Zumwinkel, has also been accused of getting too cozy with labor. Good relations will be important next year when a commitment of no layoffs expires.
In one example, Deutsche Post has 530 employees who have put their normal jobs aside to act as full-time labor representatives, often with company cars and private secretaries. This is well above the legal minimum of about 400 for the company, which has more than 500,000 workers and is one of the world’s largest employers.

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China, Russia and Germany consider logistics JV

Russian Railways, Deutsche Bahn and China’s Ministry of Railways signed a Memorandum on Co-operation in Beijing on November 20, 2006, in respect of greater co-operation on Eurasian railway transportation.

The goal of the three parties is to increase rail freight between China and Europe via Russia, and to develop competitive market services in rail transport and logistics.

The parties agreed to establish a joint co-ordinating committee, chaired by Liu Zhijun, China’s Minister of Railways; Hans Mehdorn, CEO of Deutsche Bahn; and Vladimir Yakunin, president of Russian Railways.

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