Tag: Germany

DHL Express disposes of two subsidiaries to Austrian Post

DHL Express has reached an agreement to sell its Dutch subsidiary Dedicated Distribution Services (DDS) and its Belgian subsidiary Van Osselaer Pieters Colli Service (VOP) to Österreichische Post AG (ÖPAG), the Austrian post office. The transaction is a further step in DHL’s strategy to optimize the strategic synergies within the EXPRESS organization and thus to maximize shareholder value. The transaction will not have any effect on the services provided to existing customers.

“It is our explicit strategy within DHL EXPRESS Global to focus on core express products and services. Our primary focus is to ensure that our businesses are synergistic. This means putting emphasis on systematized products with similar features, standard shipment characteristic and high quality levels. This will ensure that we significantly enhance the quality of our offering and provide increased benefits to customers and other stakeholders. This divestment program is an important step to bring healthy returns on capital employed”, said John Mullen, CEO of DHL EXPRESS Global and Member of the Board of Management at Deutsche Post World Net.

After transferring the DHL Freight business from EXPRESS to LOGISTICS in 2006 and integrating the standard Parcel business in Germany into the MAIL division, the current sale of the two Benelux subsidiaries is another milestone in DHL’s strategic approach to simplify its business processes and to increase the transparency of its product offerings.

The parties have agreed not to disclose the value of the transactions.

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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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PIN Group acquires postal firms in Central Germany

Mail firm PIN Group has expanded its network in Central Germany with the acquisition of three postal delivery subsidiaries of the publishing group Ippen-Verlagsgruppe.

PIN has acquired HNA Postlogistik in Kassel, part of the Ippen-owned local newspaper “ Hessische/ Niedersächsische Allgemeine”. Founded in 2002, HNA Postlogistik delivers all over North Hessen. PIN has also acquired a separate Ippen-owned postal firm in nearby Bad Hersfeld.

In Westphalia, PIN has bought PSW Post Service Westfalen from the Ippen-owned Westfälischen Anzeiger newspaper group. Based in Hamm, PSW delivers in the surrounding region, including Hamm, Unna, Soest and Lippstadt.

“With the acquisition of the postal businesses of the Ippen-Verlagsgruppe in Hamm, Kassel and Bad Hersfeld we are strengthening our activities in Hessen and North Rhine-Westphalia,” said Günter Thiel, PIN Group chief executive.

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TNT Express carries millions of shipments for German manufacturer

TNT Express has transported its millionth shipment from German machine parts manufacturer Heidenhain which has used the express company for the past 24 years.

After initially having 1,500 shipments from Heidenhain in 1983, TNT Express’ Munich branch today handles some 75,000 shipments a year, or an average of 340 shipments with about 700 parcels a day, representing 1,800 tonnes per year, the express operator announced.

Heidenhain develops and manufactures linear encoders, angular encoders, rotary encoders, digital readouts, and numerical controls, and delivers its products to manufacturers of machine tools and manufacturers of automated facilities and machines, especially for semiconductor and electronics manufacturing. Most products are manufactured in Germany and about 40 pct of its shipments are international.

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FedEx targets double-digit growth in Central and Eastern Europe

FedEx Express is targeting double-digit growth in Germany and the rest of its Central and Eastern Europe region, and does not exclude further acquisitions to achieve its goals, senior executives told CEP-Research. The integrator will continue to focus on international air express and does not plan to enter the German domestic market, however.

“We are on an expansion path. We want to be the preferred partner for international time-definite shipments,” said Michael Mühlberger, FedEx Express Vice President Operations Central and Eastern Europe, in an interview. He was speaking after the press conference to announce the transfer of FedEx’s Central and Eastern Europe hub from Frankfurt to Cologne in 2010.

FedEx had invested strongly in Eastern Europe in recent years, setting up own organisations in Poland, the Czech Republic and Hungary and launching own flights to the three countries, he noted. In other countries, it is represented by Global Service Partners (GSP).

In future, FedEx wanted stronger links with these partners. “For those partners where we are convinced about their quality, we want to bind them with strong contracts or through acquisitions,” Mühlberger said. Following the recent acquisition of Hungarian partner Flying Cargo, however, no other acquisitions were currently pending, he stressed.

FedEx was seeing a trend for some industries that had set up production in countries such as Poland and the Czech Republic to respond to rising cost levels there by moving further east towards cheaper countries such as Romania, he noted.

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