Tag: DHL

DHL Express (India) to expand capacity by 50% in 2 years

Posted by | Nov 7, 2006 | |

The Ministry of communications’ proposal to bring down FDI in courier services to 49% from 100% does not seem to be having much impact on foreign companies in the sector. DHL Express, the leading courier and logistics company in India, plans to expand its capacity by more than 50% in the next 2-3 years.
In the last 3-4 years, the company has invested around USD 250 million in India. Craig Grossgart, country manager, DHL Express India, told ET, “We don’t think there’s much need to panic. The proposal has been discussed in various quarters and we are confident that the interest of the industry will be taken care of. As of now, we are all set to go ahead with our expansion plans.”
In the next 3 months, the company is looking at adding a fresh 19 outlets to its existing retail network of 55 outlets, spread in 12 cities. The new outlets will be set up in Delhi, Hyderabad, Bangalore, Pune, Ahmedabad and Kolkata.

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Deutsche Post CEO says 32,000 could lose jobs due to liberalisation

Posted by | Nov 6, 2006 | |

Deutsche Post World Net AG CEO Klaus Zumwinkel said about 32,000 jobs could lose their jobs as a result of the planned liberalisation of postal services in Germany.

In an interview with DPA German news agency, he said competitors would be able to get hold of around 20 pct of the volume of letters being handled by Deutsche Post after Dec 31, 2007, when the company’s monopoly ends.

‘This would then mean the end for around 32,000 jobs in Deutsche Post,’ he said.

‘One has to know this if one wants to liberalise (the market),’ he added.

Zumwinkel said the letters market, in which Deutsche Post still holds a market share of around 92 pct, is no longer growing but has actually shrunk by around 3 pct due to the new electronic forms of communication.

He said the market shrinkage had resulted in a loss of 5,000 jobs a year but that the company manages to offset these through ‘natural wastage’, such as non-replacement of those who retire.

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Deutsche Post CEO reiterates 2009 breakeven for US Express operations

Posted by | Nov 6, 2006 | |

Deutsche Post World Net AG chief executive Klaus Zumwinkel reiterated its forecast that the company’s Express business in the US would break even in 2009.

Speaking to reporters, Zumwinkel said the EBIT of the US Express business would certainly improve in the second-half of the year, with a ‘three digit million’ eur positive impact on earnings for the period.

He said DHL currently has around a 10 pct market share in the US. ‘If we get a 12 pct market share, then we will be happy,’ he added.

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Postal dept's FDI move fails to deter foreign investors

Posted by | Nov 6, 2006 | |

The postal department’s proposal to cap foreign direct investment (FDI) in courier services and make small parcels and letters the monopoly of India Post has failed to deter the interest of foreign investors in this booming sector.

While the Overseas Courier Services Company of Japan has firmed up plans to invest here, existing foreign players like Fedex and DHL are also pumping in additional investments.

Overseas Courier Services of Japan recently won the Foreign Investment Promotion Board (FIPB) nod to invest in the country on condition that the clearance would be subject to government’s policy decisions on the sector.

Fedex is now pumping USD30m more through an acquisition to beef up its business here while DHL is planning significant investments in the next couple of years. It is expected that other international players would also take interest since the current signal from the government is that there is no going back on liberalising this sector. Confusion had arisen over FDI in courier services after the postal department proposed that foreign investment ceiling in the sector should be brought down to 49% from the existing level of 100%.

Citing India Post’s universal service obligation (USO), the postal department had called for an amendment to the Indian Post Office Act to give exclusive rights to the government-owned service for carriage and delivery of letters all across India.

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DHL solves transpacific lift problems with Polar Air

Posted by | Nov 3, 2006 | |

In a deal bound to increase competition for the high-value trade moving by air between the United States and China, DHL last month signed a letter of intent to pay USD150 million for a 49 per cent stake in pure freight operator Polar Air Cargo.

The deal, which will give DHL 25 per cent voting rights in the company owned by New York-listed Atlas Air Worldwide Holdings, also includes a 20-year agreement expected to reserve for the giant German shipper up to 50 per cent of Polar’s capacity across the Pacific. It is expected to be finalised within three months.

Although loath to publicly say so, DHL has been struggling lately to find enough scheduled transpacific lift at the right times from Asia to the US. With freight shipping demand in the region growing, the shortage looks set to grow more acute.

At present, most of the operator’s transpacific business is carried in the belly of passenger flights by long-time partner Northwest Airlines under a commercial agreement set to expire mid-2008. The US carrier has been a reliable supplier for DHL over the years but with exports from China booming, Asia’s biggest express operator needs an alternative.

With the Polar buy, DHL will solve its space shortage.

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