Tag: DHL

DHL and MIT-Zaragoza forge logistics research agreement

DHL has concluded an agreement with the MIT-Zaragoza International Logistics Program to discover and develop innovative solutions for international supply chains. The MIT-Zaragoza International Logistics Program is a partnership between the Massachusetts Institute of Technology (MIT) and the Zaragoza Logistics Center in Spain.

The collaborative venture has already launched research projects in three key areas: in-transit visibility, reverse logistics, and postponement strategies.

The three research projects now underway typify the venture’s focus on real-world issues for international supply chains. The in-transit visibility project is determining where and how to generate value from the capability to track the whereabouts and condition of assets in “real-time” while they are moving through the supply chain. The reverse logistics project is investigating ways of optimizing the logistics for both warranty- and repairprograms used by manufacturers in various industries and for regulations such as the WEEE Directive for end-of-life products. The third project is identifying which products, industries, and locations benefit most from a postponement strategy where value-added services, such as product differentiation or assembly, occur closer to the consumer rather than at off-shore facilities. Initial results for the projects are expected in the summer of 2007.

The partnership has already obtained financial support from the EU and from InnovAragón, an initiative of the government of Aragón in northern Spain.

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Brussels investigates claims of unfair subsidies to Royal Mail

The European Commission began an in-depth investigation yesterday into Pounds 2.6 billion of government funding received by the Royal Mail over the past six years.

The inquiry was triggered by complaints from some of Royal Mail’s competitors, including TNT and the Deutsche Post-owned DHL. They claimed that the government finance amounted to illegal subsidies and gave Britain’s main supplier of postal services an unfair competitive advantage in the recently liberalised sector.

The Commission is focusing on three individual loans to Royal Mail: Pounds 500 million (2001), Pounds 1 billion (2003) and Pounds 300 million (2007). It is also examining the conditions of the Pounds 850 million that has been placed in an escrow account to reduce the contributions the company will have to make to address the deficit in its pension fund.

Both Royal Mail and the Government insisted yesterday that the financial arrangements were perfectly legal and could not be considered unfair state subsidies.

If the Commission agrees that the loans have been made on commercial terms and satisfy market investor conditions, it will close the investigation. It pointed out yesterday that the inquiry could help Royal Mail if it removed any suspicions about the status of the loans.

The main complaint was lodged last October by the Mail Competition Forum, an association of seven licensed competitors to Royal Mail. The group, which includes TNT Post, approached the Commission to protest at the measures put in place to tackle the company’s pension fund deficit.

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European ''emerging markets'' come into focus

Against the background of moderate growth and increasing consolidation in mature Western European markets such as Germany, Britain and France, “emerging markets” such as Spain, Poland, Russia and Turkey are increasingly coming into focus for international express and parcel operators. In contrast to the moderate single-digit growth rates in core European markets, the continent’s smaller markets are growing at high single-digit or double-digit rates and offer attractive areas for expansion. More acquisitions can be expected in these markets during 2007.

Germany, France and Britain jointly account for over half of the total European express and parcel market, according to CEP-Research data. The “Big Three” are the home markets or major regions for carriers such as DHL, TNT, GeoPost/DPD, GLS and UPS. But the market growth rates have slowed significantly in recent years, mostly due to low economic growth, and operational costs are rising. The inevitable result is tougher competition between the market leaders and a clear trend towards market consolidation.

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Blue Dart appoints new Managing Director & Sales up by 24.51%

Blue Dart Express Limited today announced the appointment of Anil Khanna as Managing Director of the company with effect from February 21, 2007. Anil Khanna will replace Malcolm Monteiro who has moved to DHL Express, Asia Pacific, as Senior Vice President and Area Director for South Asia.

The Company posted Rs 50.23 crores profit after tax for the year ended December 31, 2006, compared to Rs 43.41 crores for the nine-month period ended December 31, 2005 of the previous year. Income from operations for the year ended 2006 was 668.02 crores. Blue Dart, last year, moved to a financial reporting for the calendar year from the earlier fiscal year.

Anil Khanna has 27 years of experience in various industries and has been with Blue Dart for over 14 years. He moves to the position of Managing Director from his earlier position as Senior Vice President – Western Region. As the Head of the Western Region, he has been responsible for developing business potential, driving strong growths in the region, which contributes to a third of the company’s revenues, and enhancing service quality. Anil is a graduate from St Stephen’s College, Delhi and holds anMBAdegree in Marketing and Finance fromUBS, Chandigarh

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DHL reveals plans for massive investment in Middle East

To mark the 30th anniversary of its presence in the Middle East region, Dr. Klaus Zumwinkel, Chairman and Chief Executive Officer of Deutsche Post World Net, has announced the Group’s growth strategy for the region at a press conference held in Dubai.

He revealed that DHL is set to expand its operations at Dubai World Central by more than 300,000 square metres over the coming years. He also announced that his company will invest significantly into expanding its presence at the new Dubai Logistics City (DLC).

The expanded facilities build upon the existing footprint of 85,000 square metres in the Jebel Ali Free Zone, which is operated by Danzas AEI Emirates. The group’s logistics entity, which represents the DHL Global Forwarding and Exel Supply Chain businesses in this region, recently announced two additional signing agreements. The first is on 30,000 square metres at the new Cargo Village Jebel Ali Airport forwarding area with an option for a further 15,000 square metres. It has also secured an additional 155,000 square meters in the DLC’s specialised contract logistics area with an option for another 78,000 square metres.

Meanwhile DHL Express plans to further invest in a new air integrator hub facility on a 50,000 square metre plot at the new World Central Airport in Jebel Ali. This hub facility will complement DHL’s existing infrastructure network and provide long-term growth capacity to its Middle East air/road distribution model.

The investment by DHL is an important step in the development of the express and logistics sector in the region. It will increase the level of competition in the region, and direct competitors will be examining their own investment strategies in light of DHL’s moves.

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