Tag: DHL

DHL Czech Republic building a new network of terminals

Posted by | Jul 23, 2007 | |

DHL Express (Czech Republic) is building a new network of terminals throughout the country to meet the growing demand for freight and logistic services and to optimize its logistics system.

The completion of the CZK 1 billion (EUR 35.4 million) project creating a network of eight main terminals – by the end of 2009, is expected to save the company between 10 and 15 percent in costs, said Jiøí Stojar, the company’s managing director. In addition, because of improved interconnections, the company anticipates higher revenues and bigger market share. In the segment of packages, DHL Express expects to grow its current share from 25 percent to 30-32 percent; and in products above 31.5 kilograms from 8 to about 19 percent, and it hopes to at least maintain its 46 percent share in express air delivery services, Stojar said.

This year DHL Express CR (together with DHL Freight, which is part of the firm) revenues are expected to reach EUR 185 million, about 15 percent growth compared to 2006.

The project, which will create the backbone of an updated distribution system, is almost half-completed with existing terminals in Brno, South Moravia, Èeské Budìjovice, South Bohemia, and Plzeò, West Bohemia. The Teplice, North Bohemia-based terminal, which is under construction, will be completed by the end of August, Stojar said, adding that the construction of a transshipment station in Hradec Králové, East Bohemia, has been delayed and the firm plans to finish it in the second quarter of next year. In 2008 the Prague and Olomouc, Central Moravia, terminals are scheduled to be built. The last two terminals will be built in 2009 in Ostrava, North Moravia, and another in the capital, Stojar said.

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DHL and Fedex providing service in Iraq

Posted by | Jul 22, 2007 | |

Two of the world’s biggest express transport companies, FedEx and DHL, opened in Iraq months after Saddam Hussein’s regime fell. DHL began operations here in May 2003, and FedEx followed in August of that year.

Both companies serve much of Iraq with drop-off locations in most major cities, and home or office delivery.

Much of their business comes from international shipments in and out of U.S. military bases in Iraq, but drivers make local deliveries as well.

Ahmad Mahmoud, a contractor who runs FedEx’s small desk in a central Baghdad hotel, says he or one of the local FedEx drivers tries to deliver most packages to people’s homes or offices, but they won’t go to certain neighborhoods.

According to FedEx’s website, the Memphis-based company relies on Falcon Express, a cargo carrier, to fly packages into Iraq as well as to other Middle Eastern countries such as Jordan, Lebanon and Syria.

FedEx boasts 33 pickup locations in Iraq, about half of them at U.S. bases, according to its website, which also lists Iraq’s import prohibitions on liquor, jewelry, political material, vitamins, Viagra and other items.

DHL has 13 package drop-off sites throughout Iraq, mostly at airports, according to its website.

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DHL takes capacity stakes

Posted by | Jul 21, 2007 | |

DHL has long depended on the capacity of others for its cargo lift, but the operator’s latest moves in international and domestic markets show clear signs that controlling capacity is increasingly important in the express business. The carrier took a big step last month toward greater influence – although DHL insists it is not control – of lift with a 49 percent equity stake in ASTAR Air Cargo, one of its two outsourced lift providers in the United States.

The financial interest, for undisclosed terms, in the independent cargo airline that was once DHL Airways follows by several months DHL’s similar equity stake in Polar Air Cargo, a USD 150 million interest that came along with an agreement to guarantee DHL space on Polar’s 747 freighters. DHL also has increased its interest in Blue Dart, the largest domestic air express operator in India to boost its presence in that growing market.

“Our investment in ASTAR signals another major commitment to the U.S. market by DHL,” said Hans Hickler, chief executive officer of DHL Express in the United States.

Hickler joins the ASTAR board under the purchase, joining airline President and CEO John Dasburg and the two non-management owners. That, along with the 49 percent interest and 24.9 percent voting stake, keeps Deutsche Post-owned DHL within the bounds of U.S. legal restrictions against foreign ownership of airlines.

ASTAR attorney Elliott Seiden said the U.S. Department of Transportation had already approved the equity purchase. “We assured them this would not come close to tipping the scales on DOT’s ownership and control rules,” he said.

The only impact on ASTAR’s operations, said Seiden, was that DHL and ASTAR had extended their ACMI contract for U.S. domestic express flights for four years, to 2019, making their relationship “more stable, more secure.”

DHL’s other air capacity provider in the United States, ABX Air, has been seeking to diversify its business to become less dependent on DHL and recently signed a freighter lease agreement with All Nippon Airways. An ASTAR spokesman said DHL equity stake “doesn’t restrain or restrict ASTAR from pursuing” other business.

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Workers at four of DHL's independent carriers join Teamsters

Posted by | Jul 21, 2007 | |

About 70 workers at four independent carriers that serve DHL joined the Teamsters, a union official said Friday.

Workers at E.D. Express and Supreme Delivery Service voted for the move this week, while employees last week ratified the union’s presence at Jennings and Associates, according to Dennis Hower, vice president of Teamsters Local 773 in Allentown.

At a fourth company, Northeastern Express, the employer voluntarily recognized the workers’ right to unionize, Hower said.

The four businesses are on Marcon Boulevard in Hanover Township, Lehigh County.

Meanwhile, about 400 workers at DHL’s distribution center in Upper Macungie Township have been stymied in efforts to unionize.

The American Postal Workers Union organized a news conference July 12 to call attention to the issue and what the union calls the unjust firing of an employee and labor organizer, Eliana Rios.

The Teamsters, which represents about 12,000 workers either at DHL or affiliated contractors, is also attempting to organize workers at the DHL facility in Lehigh County, Hower said Friday.

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DHL wishes to further partnership with Vietnam Post and Telecommunications Corporation

Posted by | Jul 20, 2007 | |

DHL Vietnam has shrugged off the idea of setting up a totally foreign-owned firm in favor of expanding cooperation with the Vietnam Post and Telecommunications Corporation (VNPT).

VNPT started acting as agents for DHL in 1988 with the first bilateral deal inked in Ho Chi Minh City. The Germany-based company got permission to set up a joint venture with a 51 percent stake with the largest telecommunications group in Vietnam in January 2007 in order to meet ever-growing market demands.

Vietnam has allowed a foreign company to hold a 51 pct stake in an express delivery joint venture as part of its entry into the World Trade Organization (WTO). However, wholly foreign-owned express companies have to wait until 2012 to go into operation.

VNPT is quite a familiar service provider to the Vietnamese with a wide agent network covering 52 cities and provinces across Vietnam.

Baxter said his company with a market share of 40 percent in Vietnam is consistently experiencing double digit growth exceeding 20 percent in Vietnam as the manufacturing sector continues to grow, and Vietnam realizes its export potential.

DHL has already kicked off a 14 million USD project to build two major service centers in southern Dong Nai province and Hanoi and to purchase a new fleet of vehicles. The move is expected to help DHL rival around 20 other foreign market players including TNT, Fedex, UPS and JNE.

TNT of Australia has just brought to service the trans-Asia road network (ARN) in Vietnam after adding 6 more million EUR to its project kicked off in 2005. After the first phase with total budget of 2 million EUR, the ARN project created a road linking Singapore, Malaysia and Thailand.

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