Tag: DHL

Interview – Cologne seeks to defend status as Europe's top express airport

Cologne/Bonn Airport is determined to defend its position as Europe’s leading airport for express cargo despite the move of DHL to Leipzig, managing director Michael Garvens told CEP-Research in an interview. Integrators and low-cost passenger airlines will remain the two core businesses in the future, he said.

Cologne/Bonn, with some 700,000 tones of air freight in 2006, is Germany’s second-largest cargo airport behind Frankfurt but the largest for express traffic due to the UPS European air hub and DHL’s night flight hub. This year it is expecting to grow to about 740,000 tones.

Cologne, with rapid access to Germany’s main export region of North Rhine-Westphalia, had a much better location than Leipzig, he noted. “Integrators are close to their customers in Cologne,” he declared.

The relocation of DHL and Lufthansa Cargo flights to Leipzig later this year and during early 2008 will mean the loss of some 215,000 tones of freight and some EUR 20 million in revenues. DHL, which will close down its larger European hub at Brussels next year, expects to handle some 700,000 tones a year at its new European express hub at Leipzig, which is due to go into service in August 2008.

The relocation of FedEx’s Central and Eastern European hub from Frankfurt to Cologne in 2010 will compensate for about one-third of the lost DHL tonnage. This will enable the airport to grow from about 550,000 tones to well over 600,000 tones in annual volumes that year.

Cologne/Bonn generates about 40 pct of its revenues, which grew to EUR 256 million last year, from freight, and expects to maintain this share in the future.

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DHL (Bahrain) appoint new Country Manager

DHL has announced the appointment of Nour Suliman, an industry veteran, as the new Country Manager.

Suliman will take the responsibility of driving the efforts toward developing the service portfolio offered by DHL. Addressing a press conference in Riyadh, Suliman spoke at length about his new mission and said: “I’m honored to move to the biggest and one of the fastest growing markets in the region. Certainly my new position will bring about its own challenges of the Saudi market, which is completely different from other markets of the world in terms of business, its volume, customer needs and high-rhymed growth”.

After joining the customer service department at DHL in Bahrain in 1978, Suliman held several senior management positions in different DHL locations including Saudi Arabia, Egypt, the UAE and Bahrain.

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Kintetsu Express considers shipping tie with Nippon Express

Nippon Express Co. and Kintetsu World Express Inc. said Tuesday they are studying joint air transport services from Japan to other Asian countries to take advantage of growing demand for shipping services within Asia.

The two Japanese firms are in talks to develop a small package shipping service that would deliver items such as samples and documents.

Japanese transport companies have lagged behind their U.S. and European competitors such as DHL and FedEx Corp.

Kintetsu World, for instance, provides shipping services to other Asian countries from Japan but focuses mostly on large shipping contracts such as delivering electronic parts, a Kintetsu World spokeswoman said.

Growth in demand for commercial shipping within Asia has been growing at 7 pct to 8 pct a year, Nippon Express and Kintetsu said in a joint press release.

The Nikkei reported that the two firms and Japan Airlines Corp. are expected to form a tie-up in international package shipments from Japan to other parts of Asia.

But the Kintetsu World spokeswoman denied the report, saying that the two transport firms haven’t decided which airline they may want to use for their potential new service. JAL wasn’t immediately available to comment on whether the airline is involved in talks with the two transport firms.

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Chinese CEP market to outgrow Germany

The booming Chinese courier, express and parcel (CEP) market will outgrow Europe’s largest market, Germany, within fi ve years if it maintains its current dynamic growth rates. The world’s four leading express players, DHL, FedEx, TNT and UPS, look set to win signifi cant market share from Chinese operators by expanding their domestic services. In response, Chinese players are trying to strengthen their fi nancial basis and enhance their services. Those are the key fi ndings of a new “CEP Market Fact Sheet China” from Hamburg-based market researchorganisation, CEP-Research.

The Chinese CEP market has soared with average annual growth rates of about 25 percent in recent years, nearly quadrupling in value from about EUR 1 billion in 2000 to over EUR 3.8 billionin 2006, according to CEP.

Demand has been driven by economic liberalisation, a surge in foreign trade and the emergence of a strong domestic consumer market. Looking ahead, growth rates in the 25 percent- 30 percent range are expected for the next few years, taking the market to over EUR 12.5 billion in 2011, CEP-Research forecasts. This would make China bigger than Germany, France and UK, the three largest express and parcel marketsin Europe.

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