Tag: GLS

New GLS network partner in Bulgaria

The GLS Group is expanding its European network through a network partnership in Bulgaria: Interlogistica Ltd., headquartered in Varna, started realising nationwide distribution for all GLS companies in February 2007. The network of GLS, one of the three largest CEP service providers in Europe, now covers 35 states.

Interlogistica is among the leading CEP service providers on the Bulgarian market. Through its national network of locations, the company ensures distribution throughout the country. With two hubs in Sofia and Varna, which also serve as depots, as well as 19 other depots, Interlogistica provides a 24-hour-service for 98 per cent of Bulgaria’s surface area. In peripheral zones, delivery is made within 48 hours. 78 delivery vehicles as well as seven long distance trucks are in use in Bulgaria. In addition, the company offers general cargo transports as well as air and sea freight services.

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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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GLS achieves strong growth for new European express service

The new European express parcel service of GLS has grown strongly since its launch last October, according to the Royal Mail division, and new customers have been won for 2007.

GLS Germany subsidiary Der Kurier, which operates the express service for its parent company through its own network, said in a statement that volumes have grown tenfold in just ten weeks since the new product was launched in October 2006.

Der Kurier provides a 24-hour express service from Germany to seven continental European countries: Austria, Switzerland, Belgium, the Netherlands, Luxembourg, Denmark and Hungary. The UK was integrated into the express network with the launch of daily flights by newly-created in-house airline GLS Air from Kassel, close to the Der Kurier hub at Neuenstein in central Germany, to Coventry.

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Consumer deliveries and international business to drive German CEP market growth

The German courier, express and parcels (CEP) market is likely to grow only moderately in the 4% – 5% range over the next few years. International business will continue to grow well while consumer deliveries will generate the bulk of new volumes in the domestic sector. Those are the key findings of the newly-published “CEP Market Fact Sheet Germany” from CEP-Research. The in-depth report also contains detailed market and competitor figures, profiles of the ten leading operators, and a comparative overview of their products.

Germany reinforced its status as Europe’s largest CEP market with total revenues of just over EUR 9.2 billion in 2005, the latest report by the Hamburg-based market research company revealed. The deferred parcels segment, accounting for over 60% of market revenues, grew faster than the express sector. Confirming the recent trend towards more online-generated parcels business, the B2C/C2C (or “consumer deliveries”) segment has grown to 32% of the market. Domestic business accounted for about 75% of market revenues. “We are now expecting a 4.6% increase for the overall market in 2006, with the B2C/C2C segment generating somewhat higher growth,” commented Robert Thyssen, CEP-Research manager.

In its medium-term forecast, CEP-Research predicted that the German market will grow moderately by 4.4% a year to reach total revenues of over EUR 11.4 billion in 2010. International growth will outpace domestic market growth. Key factors driving additional volumes will be the emergence of Central and Eastern Europe as an important regional import and export market, and rising international trade with Asia. While competition in the B2B sector will intensify, domestic market growth is likely to be mostly generated by increasing demand in the B2C and C2C segments.

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GLS buys market leader ABX Belgium

GLS Group is taking over ABX Belgium Distribution NV/SA. This makes GLS number 1 on the Belgian B2B parcel market. Today, the Belgian railroad company, SNCB/NMBS – the mother company of ABX Belgium Distribution – and GLS signed the agreements.
GLS is taking over the parcel and general cargo business of ABX Belgium Distribution, which generates revenues of approximately 90 million euros per year (Financial year 2005). Parcel business accounts for about two-thirds of the revenues. More than 650 employees work for ABX Belgium at a total of nine locations (including a hub in Brussels), providing service for approximately 8,000 customers – to service them, 560 vehicles are in use.
While ABX Belgium Distribution mostly handles shipments in the Benelux region, with only a small percentage of exports, GLS is positioned as a parcel service provider that operates throughout Europe. “Today’s transaction means we will be able to combine GLS’ European competence with ABX Belgium Distribution’s regional strength”, explains Rico Back, CEO of GLS B.V., Amsterdam. “For GLS, attaining market leadership in Belgium means that the network in central Europe is being decisively strengthened. For ABX Belgium Distribution, the link to the GLS European network will result in new growth opportunities.”

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