IPC – Market flash #374
IPC – Market flash #374
Read MoreTag: International
German CEP operators expect moderate growth
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.
Read MoreTNT offers Innight services in the Nordics
TNT is offering Innight distribution in the Nordic region following the launch of dedicated flights between Brussels and several regional airports at the start of June.
The express operator has started up a route between Brussels, Jönköping (southern Sweden) and Helsinki operated with a BAe 146, and two feeder routes operated with Cessnas linking Oslo and Billund (Denmark) to Jönköping.
Tony Jakobsen, Regional General Manager TNT Northern Europe, said TNT was the only international express operator offering such innight distribution services on a scheduled basis.
Stephen Naylor, managing director of TNT Sweden, added that Jönköping was ideally located to act as a hub for innight shipments from Central Europe heading for Nordic destinations. Key customers include the automotive and agricultural sectors.
Read MoreGLS reports positive results (NL)
General Logistics Systems B.V. (GLS), Amsterdam, reported its 2007/08 results with strong sales and volume increases and profits in line with expectations.
GLS increased its sales to 1.75 billion euros – an increase of 9.2 per cent. The number of parcels handled totalled 335 million, representing a new record. EBITA at 172 million euros was in line with expectations.
GLS invested approximately 47 million euros in capital expenditure in 2007/08. In addition to France and Romania, new hubs and depots were opened in Austria and Poland; and additional franchise depots were acquired in Italy. The integration of GLS Belgium Distribution (formerly ABX BELGIUM Distribution) into the GLS system is also progressing as planned.
In 2008/09, GLS is planning network investments totalling 94 million euros – with significant investments in Germany, Poland, the Netherlands and France. The focus will be on rolling out industrial parcel production processes throughout the network as well as implementing new solutions for the “last mile” in B2C business. Other priorities will be the expansion of the GLS national and international express product offering, and GLS will continue to pursue global partnerships such as the recent cooperation agreement with Gati Ltd. in India.
GLS is expecting the European CEP market to grow at a moderate rate of ca. 3.5 per cent. In its international business, GLS Group is planning double-digit growth rates.
Seur franchise owners reportedly ready to sell
A group of Seur franchise owners is ready to sell their holdings which add to up to a majority stake in the leading Spanish parcels company, according to media reports. DHL, UPS and investment funds are reportedly interested but existing shareholders, including GeoPost, have the right to outbid them.
The group of franchisees represents 52 pct of the capital of the parent company, Seur SA, 65pct of the franchises by number, and generate 56 pct of gross profits, Spanish newspapers Expansión and El Mundo reported. The regional operators have jointly commissioned investment bank Arcano to seek offers for their shareholdings. International equity funds and multinationals such as DHL and UPS are interested parties, Expansión wrote.
The express parcels group has a complex, decentralised ownership structure comprising regional franchisees who also own small stakes in the parent company Seur SA. Seur has 85 franchisees in total controlled by 54 companies. More than 75pct of these owners are among the prospective sellers, according to the newspapers.
The largest single shareholder is GeoPost, the French La Poste subsidiary, which has built up a 19.6 pct stake in the parent company in recent years by gradually acquiring individual franchisees through the joint venture Seur-GeoPost.
In a company statement, Seur reiterated that the right of first refusal on any shareholder shares being sold meant that it would have preference over any outsider buyer as long as it matched their offer. The head office had not been officially informed by any shareholder that it wanted to sell its holding, it added.
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