Tag: DPD

German CEP operators expect moderate growth

Posted by | Jun 11, 2008 | |

Express and parcel delivery companies in Germany expect only moderate growth this year after 5 pct growth in 2007, according to an industry association.

Gunnar Uldall, former Hamburg economics senator and new president of the German International Express and Courier Services Association (BIEK), said that the CEP sector generated volume growth of nearly 5 pct and revenue growth of over 5 pct last year. Further moderate growth is expected for 2008. The association represents DPD, FedEx, Go!, Hermes, TNT and UPS.

The CEP industry was a key services sector with growing importance for the German economy, with its strong export focus, Uldall told a news conference. BIEK members had taken on about 3,000 more employees last year, and there is currently a need for qualified drivers, he noted. BIEK members employ about 65,000 staff directly or as self-employed drivers. There are about 173,500 people working in the German CEP sector as a whole.

Addressing key issues for the association, Uldall criticised Deutsche Post’s VAT exemption for letters up to 2kg and parcels up to 20kg which was a competitive distortion in the formally liberalised German mail market.

Since neither option was likely, however, BIEK proposed a compromise, with deliveries of up to 50 letters, including individual private letters, remaining VAT-exempt, and all other items, including bulk mail, parcels and added-value mail, being VAT-chargeable. This would not lead to a price increase for customers due to intense competition between Deutsche Post and private operators, Uldall said.

BIEK will also hold talks with Deutsche Bahn over opportunities to transport more express and parcel shipments by rail, and continue to promote the use of alternative fuels and motors to reduce CO2 emissions, he added.

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DPD in Russia Announced 2007 Results

Posted by | May 27, 2008 | |

In 2007 DPD in Russia further strengthened its positions on the Russian transportation logistics services market. In total DPD in Russia delivered 3.5 million parcels for 14,000 customers across Russia, the total weight carried was around 100,000 tons. The turnover exceeded 2006 results by 41 pct.

As of autumn 2007 the business trades under the single international DPD brand. Transition to DPD brand means that the reliability of services rendered by DPD in Russia, staff professionalism and partnership customer relations are all in line with what today’s demanding customers expect from transportation logistics solutions in Russia and internationally.

The branch network of DPD in Russia further expanded in 2007 with the opening of 3 new branches in Irkutsk, Kemerovo and Surgut. By the beginning of 2008, the network of DPD in Russia comprised 25 branches. Each branch offers the complete range of services which DPD in Russia provides based on a unique express forwarding approach.

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DPD brand business development in the CIS Countries to exceed 50 million euros

Posted by | May 27, 2008 | |

In response to growing customer requirements for quality parcel and freight delivery within the CIS, GeoPost and Yurtiçi Kargo have made a decision to enter the transportation logistics markets of the CIS countries under the DPD brand.

The range and quality of transportation logistics solutions to be offered in the CIS, by the companies trading under the DPD brand, will be similar to those provided by DPD in Russia.

Businesses in Kazakhstan and the Ukraine are already fully operational. The DPD Max service was recently launched in Kazakhstan; the service represents a reliable domestic road-based parcel and freight delivery solution. The first DPD Max route was opened between Almaty, the business capital of Kazakhstan, and Astana, the country’s official capital. The DPD Max service is an unmatched offer in

Kazakhstan’s transportation logistics services market. In addition to the traditionally high level of DPD’s service quality, the service also represents an effective solution for environmentally-conscious customers. Due to the service’s road-based approach, the CO2 emissions of road-based freight transport are lower than transporting that same freight by air. In the near future, the DPD Max service will also be launched in the Ukraine.

The opening of a number of branches within the CIS is planned for the near future, for example, in Kazakhstan there will exist 9 branches, by 2013. Total investment in DPD business development in the Ukraine and Kazakhstan between 2008 and 2012 will exceed EUR 50 million.

In addition to Kazakhstan and the Ukraine, plans are in place to enter other CIS markets with strong development potential.

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DPD to hike prices for parcel deliveries instead of parcel shops expansion

Posted by | May 23, 2008 | |

DPD has stopped the expansion of its parcel shops in Germany and is instead planning to increase prices for parcel deliveries to cope with the rising fuel costs, DPD CEO Arnold Schroven told the German newspaper Frankfurter Allgemeine Zeitung in an interview this week.

In the beginning of April, the company had announced that it would continue its strategic growth by opening another 1,500 parcel shops in Germany by the end of 2008 in addition to its existing 3,000 retail outlets. Meanwhile, DPD has surprisingly changed its strategy and is now planning to invest in the development of a new express delivery service and to concentrate on its international parcels business. In both segments, the company generates considerably higher profits than in the domestic parcels business, Arnold Schroven further explained. He added that the company was under pressure as it couldn’t fully implement the price increase of 4 pct for parcel deliveries planned for this year.

In view of the rising transport costs, further increases in parcel deliveries between business clients – the company’s core service – are unavoidable from 2009, Schroven said.

From October this year, the company plans to increase the prices for a single parcel by 3 cents due to the government plans to hike truck toll fees. As a result of the price increase, Schroven expects an annual revenue growth of 50 pct in the express sector. Currently, DPD’s express division accounts only for 5 pct of the total group revenues.

Last year, the company’s sales grew more than 5 pct, exceeding EUR 1 billion revenues for the first time.

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Latvian express market grows 70pct in 2007

Posted by | Apr 22, 2008 | |

Latvia’s express parcel volumes increased by 70pct to 6.3 million shipments in 2007 compared to 3.7 million shipments in the previous year, according to the Latvian Public Utilities Commission’s (PUC) annual review of the country’s express delivery market, the Baltic Business Daily reported.

“Both domestic and international deliveries showed large growth. The incoming international express deliveries rose by 128pct, international outgoing deliveries by 35pct, and domestic express deliveries increased by 45pct,” the commission’s representative Zanete Luse was cited as saying.

In the domestic sector, DPD Latvija had the largest market share with 43pct in 2007 ahead of state-run postal operator Latvijas Pasts with 27pct, according to the regulator’s data. Other leading domestic players include Velokurjers, City Express, Autopasts Terminals and V-Sports.

The international sector was led by Itella Logistics with a 53pct market share followed by DPD Latvija with 19pct. Other leading international players include UPS partner EKL/LS, DHL, TNT and Autopasts Terminals.

The number of registered express companies in Latvia grew by eight to a total of 30 last year, according to the PUC. The PUC is an independent state institution responsible for regulating various sectors, including the postal market.

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