Tag: Germany

DHL gears up for ''soft'' Leipzig hub launch

DHL grows at Leipzig DHL Express will gradually build up flight operations at its new EUR 300 million European air hub at Leipzig over the coming 12 months to ensure a smooth transition from its existing hub in Brussels and to avoid the kind of operational problems that hit the opening of its US hub at Wilmington two years ago.

In July, DHL handling staff from Brussels, Cologne and Britain will test loading and unloading procedures at Leipzig, Achim Zimmermann, Sales Manager West at DHL Express Germany, said in an interview at the Transport Logistic trade fair in Munich. Leipzig will be one of three DHL Express intercontinental air hubs alongside Wilmington and Hong Kong on opening in mid-2008.

DHL Express already operates 14 cargo planes on European overnight flights between Leipzig, the Brussels hub, its Cologne gateway and a number of Central and Eastern European destinations. These services, carrying about 160 tonnes of cargo daily, were moved from Berlin Schoenefeld airport over the last two years. The DHL hub buildings are currently under construction on a 53 hectare area adjoining the extended, 3.6 km southern runway.

In the next phase, about 6-8 flights will be transferred from Cologne to the Leipzig gateway during the third quarter of this year, Zimmermann said. All Cologne flights are scheduled to move to Leipzig by the end of 2007. During the first half of 2008, flights will gradually be transferred from Brussels to Leipzig.

In view of the operational difficulties at the opening of the Wilmington hub in autumn 2005 when two different hubs were merged at one location, DHL Express is taking a more cautious approach this time. “We have a back-up scenario. Cologne and Brussels will remain open as gateways. If there are any problems at Leipzig, we can relocate immediately,” Zimmermann pointed out. “We will always be able to switch in future if there are any problems.”

In particular, DHL Express will be responsible for its own aircraft handling at Leipzig, making it independent of airport staff and creating opportunities for third-party handling contracts, he noted. DHL will also have its own hangar for technical maintenance.

At Leipzig, DHL Express would benefit from the proximity of DHL parcel and freight forwarding facilities, the airport’s close geographical position to emerging markets in Central and Eastern Europe, its good multi-modal infrastructure with motorway connections and a nearby railhead, and the relocation of logistics facilities to the airport’s surrounding area, Zimmermann pointed out.

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Deutsche Post to open 600 new retail outlets In Germany

Starting this autumn, Deutsche Post will open some 600 new retail outlets throughout Germany, thereby boosting the size of its network to over 13,000 locations. By the end of the year, the company will have expanded its Postpoint pilot project to the whole of Germany. Trials of this new type of retail outlet have until now been limited to the cities of Dortmund and Bonn.

Postpoints satisfy the daily requirements of private households and can handle small and large parcels as well as letter mail. In addition to stamps and Paketmarke prepaid parcel stamps, customers will also be able to purchase prepaid envelopes, response cards and small parcels (Plusbrief, Pluskarte and Pluspäckchen). Postpoint customers can also use our registered mail, redirection and storage services, as well as find out about our products and prices. Postpoints are run by Deutsche Post in collaboration with trusted retail partners. By providing a service during normal shop opening hours, Deutsche Post is placing the customer at the heart of its business.

The trial of this new approach is one of the initiatives launched under the worldwide quality program announced last year: “First Choice” aims to ensure that the Group cements its position as the preferred provider for its customers.

The actual locations of the new Postpoints are expected to be decided and announced in September, as soon as negotiations with our retail partners have been completed.

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Hermes works on European B2C network

German B2C parcel delivery company Hermes Logistik is working on creating a European network to grow its international business, a senior manager told CEP-Research. It will enter the Austrian market on July 1.

Hermes, with turnover of EUR 1,016 million in 2006, is a subsidiary of Europe’s largest mail-order firm Otto Group, which also owns the parent firms of UK home delivery company Parcelnet and France’s Mondial Relay. Parcelnet recently bought the Redcats courier network while Mondial has announced plans to start operations in Belgium, Luxembourg, Spain and Portugal.

The company, which claims a German B2C market share of about 37%, is again developing well this year, with Parcel Shop volumes up by 25% year-on-year as of the end of May, Martin Kreiter, vice president marketing, said in an interview at the Transport Logistic fair in Munich. “We are growing well this year, and are winning new third-party customers,” he commented.

On plans for Austria, he added: “We are ready to start. We have the 1,200 Parcel Shops.” Hermes will initially have about 20% of the Austrian B2C market by delivering Otto Group parcels in the country.

Asked about Hermes’ European expansion plans, Kreiter noted that the Otto Group subsidiaries combined are already Europe’s largest home delivery organisation with 22,000 Parcel Shops. The creation of a European B2C network is “one of the challenges for the next few months,” he said. Although it was not yet clear how this would be structured, “we will need one face to the customer in future”, he stressed.

Kreiter confirmed that Hermes Logistik planned to enter the German mail market once the small letters segment was liberalised as of January 2008. “We know we are losing business because customers take letters and parcels to the post office. If we offer both, then we will win more business.”

Hermes would offer letter services through its network of 13,000 Parcel Shops. Consumers would be able to post letters in blue letterboxes outside the parcel shops. Hermes would definitely not have any delivery staff itself but would provide delivery through partners, he said. TNT Post Germany, in which it has a minority holding, was one possible delivery partner.

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DHL named International Express Operator of the Year 2007

DHL was named “International Express Operator of the Year 2007” at this year’s Air Cargo Europe transport logistic industry trade fair, held from June 12 – 15, 2007 at the new Trade Fair Center in Munich. Honoring excellence in the air cargo industry, the first-ever World Air Cargo Awards was sponsored by the Air Cargo Weekly newspaper, a forum for international airfreight professionals.

Voting was administered online via the Air Cargo Weekly website, where readers could nominate industry leaders in a range of award categories, including Cargo Airline of the Year, Airport of the Year and Airfreight Forwarder of the Year. DHL came out on top in the International Express Operator category, as voters were impressed by DHL’s ability to meet performance targets, its level of investment in new products and services, and DHL’s flexibility, innovation and overall “personal touch” when it comes to customer needs and customer service.

The conference is the world’s largest gathering of the international air cargo community, bringing together over 21,000 executives from airlines, airports, freight forwarders, shippers, suppliers and service providers. After this year’s premiere, Air Cargo Weekly plans to sponsor the World Air Cargo Awards annually.

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German govt mulls extending Deutsche Post VAT exemption to competitors

The German government is considering extending Deutsche Post World Net AG’s exemption from VAT to all letter carriers in the country, as part of its plans to end the company’s monopoly on the market, Frankfurter Allgemeine Zeitung reported, citing government sources.

The move will increase the amount of tax revenue the government is losing from its current level, which is an estimated 300-500 mln eur a year, it said.

Deutsche Post is scheduled to lose its mail delivery monopoly for letters weighing up to 50 grams at the end of this year, with the EU seeking a continent-wide liberalization of the market in 2009.

The exemption from VAT will include all mailings up to 1,000 grams, the newspaper said today.

The government also hopes the exemption will help keep prices low after Deutsche Post’s monopoly expires, it said.

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