Tag: DHL Express

DHL Express eyes acquisitions for Turkish growth

DHL Express is looking at acquisitions in Turkey to increase its growth in the country, according to reports in Turkish media.

The company, which claims a 50% percent of the Turkish express market, grew 30% in 2006 compared to an original target of 18%, the Dunya Gazetesi newspaper reported. Total revenue figures were not disclosed.

According to the Referans newspaper, DHL is in discussions with Aras Cargo, one of the leading Turkish logistics operators, about a strategic investment. The newspaper cited Enis Karsloglu, general manager of Aras Cargo, as saying that the company was in talks with three foreign investors, including DHL, about international growth plans.

DHL Turkey’s communications director Seda Susal was quoted as saying that DHL wanted to extend its operations in Turkey through acquisitions and was in talks with some companies.

Aras Cargo, a family-owned company, claims to be one of the largest freight transport groups in Turkey. According to information on its company website, it has 7,300 employees, 2,500 vehicles and 1,300 service points. Products include a nationwide next-day delivery service for small goods.

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Experts gather in Hong Kong to share knowledge on building brands

To identify the future trends and practices for industry players, the International Conference on Brand Management will take place in Hong Kong for the second time. Jointly organised by Hong Kong Polytechnic University, the Asian Centre for Brand Management and the Hong Kong Design Centre, the event will enable experts on branding and industry leaders to exchange views and discuss the way forward.

Keynote speakers include Roland Rust, a professor from the Robert H. Smith School of Business, University of Maryland, who will discuss how service changes brand management, and Rod Brodie, professor of marketing from the University of Auckland, who will examine the role of integrating consumer and relationship marketing to create value.

Top executives from Hong Kong and the mainland will also join the conference to share their experiences in brand development and management. Among them are Alan Wong, director of marketing with DHL Express (Hong Kong); Viveca Chan, founder of WE Worldwide Partners; Margaret Leung, general manager of HSBC; Alfred Chan, managing director of Hong Kong and China Gas; Sun Xianhong, vice-president of Mengniu Dairy; and Eden Woon, vice-president for Greater China of Starbucks (China) Coffee Company.

Professor Tsui said branding was becoming increasingly important for Hong Kong as its economy was now mainly service-oriented.

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DHL reduces loss in US Express

Deutsche Post announced yesterday, 3rd Quarter results up by a third on 2005. But the performance of its US Express division is a continuing cause for concern, dragging the rest of the Express business and the whole group down.

Headline growth was impressive, with consolidated revenue up by 35% to *14,887m and EBIT up 40% to *1.03bn compared with the same period last year. But these figures are flattered by the acquisition of Exel in early 2006.

The logistics business continues to perform reasonably. The Exel acquisition is running smoothly and the Division as a whole is gaining market-share. Revenue for the nine months was up to *16 billion, with *8.6billion coming from the acquisition of Exel. EBIT for the year-to-date was *513 million.

The problem area remains Express. The US Express division continues to lose money, although losses have been reduced by what was called a “three digit million euro amount”. CEO, Klaus Zumwinkel stated both in comments to analysts and in an interview earlier this week that the US Express business had 10% market share and that if it achieved 12% “we would be very happy”. Elsewhere the company described growth in Express as strong, with double-digit growth in revenue in Asia-Pacific. Overall results for Express revenue were down over Q3 2005 by 2.8% at *3,755million but EBIT was back in positive territory at *86million.

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China delivers good growth for DHL despite tough competition

John Mullen recalls sitting in Sir Peter Abeles’ office in the twin TNT Towers in Sydney in the early 1980s, watching his chief executive brief a junior colleague on how the company was going to break into the Asian package delivery market.

“The strategic discussion was, `Just go and open it’. He asked, `What do you mean by that?’ and Abeles said: `Get on a plane and go and open Asia. It’s got to be the future’.” As head of the Asian division of DHL Express, the global package delivery service owned by German logistics giant Deutsche Post, the 51-year-old Australian has had to move fast to meet the 50 per cent annual increase in parcel volume China has delivered over the past five years. DHL Express now has about 6000 staff in China, having built up the business by exploiting existing relationships with foreign companies that were establishing Chinese manufacturing operations for the first time.

But as growth of the Chinese middle class transforms the economy from being simply a cheap exporter of manufactured goods to a consumer society in its own right, so is DHL’s business changing from just being a conduit for the import of components and export of finished goods.

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DHL Express starts up local delivery services

DHL Express, the filial of German giant Deutsche Post World Net, yesterday formally arrived on the Colombian map for local operations in competition with national rivals such as Servientrega, TCC and Coordinadora. Antonio Arranz, the director of DHL Express in Colombia, has revealed that the multinational will invest USD15mil over the next five years on establishing itself locally. The money will go on vehicles, scanners etc.

DHL Express should boast a Colombian workforce in excess of 1,000 for 2011, doubling its current size. The firm’s new Servicio Expreso Nacional will initially be directed at the corporate sector before incorporating private citizens. DHL Express will cover 130 destinations at first for packages of up to 70 kilos. DHL Express already has 2,500 clients locally for imports and 4,000 for exports.

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