Tag: DHL

FedEx plans to acquire TNT would shake up the industry

Posted by | Jul 17, 2008 | |

Independent research company Datamonitor says FedEx is reported to be interested in acquiring TNT, which seems to suggest that it does not want to rely on organic growth to strengthen its position in the global express market. Although combining two of the world’s leading players would put strong pressure on the other two integrators, UPS and DHL, overall, the competitiveness of the industry looks set to remain intact.

FedEx has already been trying to reduce its dependence on its home market and the use of air networks by building a stronger presence in the European market, as well as investing in its Asian network. The acquisition of ANC in the UK helped to secure a stronger position in one of Europe’s key markets, and TNT’s dominant position in the intra-European express market makes it an ideal target that would allow FedEx to develop its position in Europe further.

Preliminary results from Datamonitor’s upcoming European Express Market Map suggest that, despite showing decreasing growth rates, the European express market is still in a good state, with the B2C and Eastern European markets acting as its main growth drivers. TNT is particularly well positioned to capture any growth in the B2B markets as it has a strong road and air network that is operational in all the key markets. The company also boasts a strong position in emerging markets in the rest of the world, notably the Brazilian, Russian, Indian and Chinese (BRIC) markets and the Middle East.

FedEx and TNT have reciprocal geographic strengths and, as TNT has lost its monopoly in its home mail market, a combination of the two companies appears to make strategic sense. The merger would also put significant pressure on European market leader DHL, which is trying to recover its market position in the US, where it continues to lose money in a co-operation agreement with UPS (which has also been reported to have an interest in acquiring TNT).

Should the tie-up be completed, the effects would be far-reaching, says Datamonitor Logistics and Express senior analyst Erik Van Baaren. “Significant pressure would be placed upon DHL and UPS, given that they would have to compete with a global player capable of exploiting greater economies of scale and serving the needs of globally operating companies more efficiently as further internationalization of the industry takes shape.”

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China's Sinotrans Air Transportation sees net profit up 50-100 pct

Posted by | Jul 16, 2008 | |

Sinotrans Air Transportation Development Co Ltd said first half net profit is expected to have risen by 50-100 pct year-on-year due to the sale of a stake in its joint venture with Deutsche Post AG.

In December 2007, the company agreed to seel its entire stake in 50-50 joint venture Exel-Sinotrans Freight Forwarding Co Ltd to its partner Deutsche Post for 61.04 mln eur.

In a statement filed with the Shanghai Stock Exchange, the company said the deal was completed in the first half and revenue from the sales was reflected in its first half books.

The company realized a net profit of 283.91 mln yuan in the first half of 2007, or earnings per share of 0.31 yuan.

Sinotrans Air Transportation, a subsidiary of Hong Kong-listed Sinotrans Ltd, is due to release audited first half financial results on Aug 27.

(1 usd = 6.8 yuan)

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First DHL branded Tupolev now linking Moscow and Leipzig

Posted by | Jul 15, 2008 | |

DHL launched its first DHL branded Russian-built aircraft, a narrow-body Tupolev-204C aircraft. The Tupolev, branded in DHL’s trademark yellow and red coloring, took to the skies from Sheremetyevo International Airport on July 5, 2008, going to Leipzig/Halle airport, the home of DHL’s new European hub, which opened in May 2008. The Moscow-Leipzig flights will operate 6 days per week, and offer a capacity of 28,000kg per sector.

‘We are proud to also have a Russian aircraft flying in DHL branding. This shows our commitment to Russia and underlines our successful development in the Russian market’, said Adrian Marley, General Manager of DHL Express Russia.

DHL plans to strengthen the network for its customers’ cargo to ensure maximum uplift of their goods. This is expected to further enhance DHL’s proven ability to provide on-time, reliable delivery of shipments around the world and to take the company’s customer service to a new level.

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TNT Romania ups profits by 45 pct

Posted by | Jul 14, 2008 | |

TNT Express again grew strongly in Romania in the first half of 2008, according to a newspaper report.

TNT Romania increased its revenues by 25 pct in the first six months of 2008 and improved its net profit by 45 pct year-on-year in the first half of 2008. No exact figures were available.

In 2007, TNT Romania reported a net profit of EUR 5.6 million and revenues of EUR 33 million targeting an increase by 20 pct on the year in 2008, with international courier services generating 75 pct of the total revenues, TNT Country Manager Bogdan Enache said.

The company reportedly plans to build a new road hub at the international airport in TImisoara, western Romania, this year. It has now 20 offices located in main cities of the country, a fleet of more than 180 vehicles and employs 360 people.

TNT Romania competes with the other leading global players DHL, UPS and FedEx as well as domestic companies such as Cargus, Fan Courier, Cargus, Alo Curier, Concorde and Pegasus.

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Petitions opposing DHL deal (U.S)

Posted by | Jul 14, 2008 | |

U.S. Sen. Sherrod Brown, D-Ohio, on Monday, July 14, delivered petitions opposing plans by DHL to ally itself with United Parcel Service.

After emerging from DHL’s offices on July 14, Brown said he met briefly with Mike Schmitt, Director of Operations for DHL’s hub in Wilmington, and delivered the petitions to Schmitt after rallying outside the building with workers from DHL, ABX Air and ASTAR Air Cargo.

The senator also laid out steps being taken by the federal government to deal with a proposed plan by Deutsche Post, owner of DHL, to move at least DHL’s air-freight operations to UPS’ hub in Louisville, Ky. If DHL moved these operations, as well as ground transport and overseas packaging operations to Kentucky, it could cost the region 8,200 jobs.

Brown said his staff is working with that of Sen. Herb Kohl to investigate potential antitrust issues related to the deal. Kohl, a Wisconsin Democrat, chairs the Senate’s antitrust, competition policy and consumer rights subcommittee. Lawmakers cannot hold hearings on the DHL situation until the company reaches a final agreement with UPS, Brown said. Federal officials are looking at DHL’s contracts with the U.S. government, the senator said.

Brown said he also has asked the Bush administration to help speed up a Justice Department review of the deal and also discussed potential uses of the facility by the federal government if DHL does leave.

Also on July 14, a coalition of workers and community leaders delivered the same petition to the state capitol. Mark Barbash, Chief Economic Development officer for the Ohio Department of Development, accepted the petition from members of Save The Jobs, said Keith Dailey, a spokesman for the governor.

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